Output Costing in Cost & Management Accounting (CMA)

Unit or output costing is that method of costing in which cost are ascertained per unit of a single product in a continuous manufacturing activity. Per unit cost is calculated by dividing total production cost by number of units produced. This method is known as ‘single costing’ as industries adopting this method manufacture, in most cases, a single variety of product. This method is also known as ‘unit costing’, as not only the cost of the total output, but also the cost per unit of output is ascertained under this method. Under this method cost units are identical. This method is also called ‘output costing’, as cost is ascertained for the total output of a product. Unit Cost Accounting is such a method of cost ascertainment which is based on production unit. It is applicable where the production work is done continuously and the units are of same types or manufactured identical. Output costing is a method of costing under which there is the costing of a single product which is produced by a continuous manufacturing activity. Though under this method of costing a single variety of product is manufactured, it may vary in respect of size, grade and colour. The example of industries which make use of this method of costing are – brick, sugar, cloth, coal, cement, fisheries, food canning, quarries, plantation industries, etc. In this course, the students will learn:

• Concept of output Costing

• Construction of Cost Sheet

• Calculation of Prime Cost

• Factory Cost

• Cost of Production

• Cost of Goods Sold (COGS)

• Cost of Sales

• Comparative Cost Sheet

• Tender Based Problems

• Typical Problems & Case Studies