Cost Sheet Template

The concept of costing, which is also known as cost accounting, in some cases, is quite a new one. The connotation of cost accounting which developed as a forecasting and credit provision calculation has its origins in the concepts of financial accounting and bookkeeping; a centuries old activity. In common financial accounting, incomes and expenditures or any transaction is recorded as it is conducted. However, in case of cost accounting, the exact opposite takes place as the transaction is conducted before it actually takes place. The 'cost' of production, raw materials, conducting business and operating the established is forecast using precise data and in return is used to derive the cost of goods that are to be sold. This process forms the core of costing.

About the Cost Sheet

A job order cost sheet is quite commonly observed, and you might have seen one in several sales and invoice documents. Well, this statement or account shows how the current market price was reached upon. For any kind of production process, an establishment incurs cost. This cost which is incurred is added up and some inclusions and deductions are made. Then, a profit margin is added to it, which is our final cost and ideal price of sale. This cost sheet can be used for several purposes such as quoting costs to clients, assessing and forecasting sales prices, forecast projections and even report to the management. The cost sheet consists of the following important elements. For guidance you can also refer to the template.

• The first option of the cost sheet is of course the prime cost. In the prime cost all the costs that are directly arising in the production are included. This consists of all the labor that works on the job and the raw material that is purchased. In cases where machines are used, power supply for the same in terms of machining hours is considered.
• The second section is of the production cost or the factory cost. Expenses arising within the factory right from rent to depreciation are included in the factory cost.
• The third section is the office cost. This section consists of all managerial and administrative costs, plus some taxes and duties. Research and development is considered in the office cost, owing to the fact that its expenditure is not directly included in the cost of production. Cost of research is a one time cost and hence it would be divided and levied on all cost sheets.
• Sales cost connotes all the costs that are included in the sales operations. This will include advertising and marketing expenditures.

The following is a simple job cost sheet. It must be noted that all the costs except the prime costs, constitute the overhead costs, and are not direct participants in the production. Overhead costs and some specific costs are also cut in some of the cost recovery methods, in order to reduce the cost of production.

Job Cost Sheet Template

Cost Sheet for...
1.	Prime Cost	Amount in $
1.1	Direct material	$...
1.2	Direct labor	$...
1.3	Direct power/fuel as per machine hours	$...
1.4	Total	$...
2.	Factory Cost	Amount in $
2.1	Rent	$...
2.2	Foreman salary	$...
2.3	Power supply cost	$...
2.4	Lubrication	$...
2.5	Maintenance	$...
2.6	Labor salary	$...
2.7	Taxes and Excise	$...
2.8	Factory administration cost	$...
2.9	Machine costs as per machine hours	$...
2.9	Depreciation	$...
2.10	Total	$...
3.	Office Cost	Amount in $'s
3.1	Administrative costs	$...
3.2	Accountant and Clerk salary	$...
3.3	Taxes	$...
3.4	Operational costs (e.g.: stationery)	$...
3.5	Officers Salary	$...
3.6	Management salary	$...
3.7	Research and development cost	$...
3.8	Depreciation	$...
4.	Sales Cost	Amount in $'s
4.1	Marketing costs	$...
4.2	Advertising	$...
4.3	Sales commission	$...
4.4	Sales tax and duties	$...
4.5	Operational cost of sales	$...
5	Profit (in %)	$...
6	Final tax	$...
7	Total	$...

You will need to add or remove some of the elements as per your need. Several companies disclose this sheet to some of their clients, or while issuing quotations or tenders.