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Former Member
Feb 17, 2009 at 04:05 PM

Cost Component Structure

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I have defined the below cost component structure in my company

Is it correct and what if I have to define separate cost component structure for Captive Production Goods covered by CAS-4 as per the Excise law.

Kindly guide if the same can be applied for a group of products and different overhead can be defined for the different product group.

Sr No. Cost Component (Base)

1 MATERIAL CONSUMPTION (Based on the primary cost

element)

2 DIRECT LABOUR (Based on the secondary Cost

Element)

3 INDIRECT LABOUR COST (Based on % of Direct Labour)

4 UTILITIES (Based on the Secondary Cost

Elements)

5 PRODUCTION OVERHEAD (Based on % of Material Cost)

6 COST OF GOODS MANUFACTURED SUM OF 1 to 5 (COGM)

7 ADMINISTRATION OVERHEAD (Based on % of COGM)

8 SALES OVERHEAD (Based on % of COGM)

9 COST OF GOODS SOLD SUM OF 6 to 8 (COGS)

With Regards,

Amit

Edited by: Amit Dhanurdhari on Feb 17, 2009 5:06 PM