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Overheads: Collection, Classification, Allocation, Apportionment and Absorption of Overheads (Primary and Secondary Distribution), Machine Hour Rate. Preparation of Cost Sheet, Operation Costing, Service Costing. Cost Ledger Accounting, Reconciliation of Cost and Financial Accounts. 1. Overheads: Overheads refer to the indirect costs incurred in the production or provision of services. These costs cannot be directly attributed to a specific product or service but are essential for the overall operations of a business. Managing overheads effectively is crucial for cost control and profitability. Collection: The collection of overheads involves the systematic gathering of data related to all indirect expenses incurred by a business. This includes items such as rent, utilities, depreciation, office supplies, administrative salaries, and more. Accurate and comprehensive data collection is essential for cost analysis and budgeting. A well-organized system of data collection ensures that no

Notes of  Cost accounting : Preparation of Cost Sheet, Operation Costing, Service Costing.  Preparation of Cost Sheet Introduction: A cost sheet, often referred to as a cost statement or a product costing sheet, is a document that provides a detailed breakdown of all the costs associated with the production of a specific product or the provision of a service. It is a fundamental tool for cost analysis, financial management, pricing decisions, and budgeting. 1. Components of a Cost Sheet A typical cost sheet includes various components: a. Direct Costs: Direct Material Costs: The cost of raw materials used in production. Direct Labor Costs: The wages of workers directly involved in the production process. Direct Expenses: Costs directly attributable to the production process, such as fuel or specific production-related utilities. b. Indirect Costs: Indirect Material Costs: The cost of materials not directly traceable to a specific product, such as lubricants or small tools. Indirect Lab