As per sub rule (2) of Rule 4,of Cost Accounting (Records) Rules , 2011 the companies are required to maintain cost records on regular basis in such manner so as to make it possible to calculate per unit cost of production or cost of operations, cost of sales and margin for each of its products and activities for every financial year on monthly/quarterly/half-yearly/annual basis.
The cost statements are to be prepared for every unit and every product produced, processed, manufactured or mined.
As per sub rule (3), the cost records are to be maintained in accordance with the generally accepted cost accounting principles and cost accounting standards issued by the Institute of cost accountants of india to the extent these are found to be relevant and applicable
These Rules have not prescribed any specific formats for the cost statement.
An illustrative list of Cost Records:
1.1. Raw Material consumption register/report;
1.2. Production report;
1.3. Rejections/wastages/scrap report;
1.4. Report on stoppage of machines with reasons;
1.5. Idle time report with reasons;
1.6. Machine utilization report;
1.7. By-Product & Joint Products.
2. Work-in-Progress and Finished Goods
2.1 Process stock register- cost centre-wise and product wise;
2.2 Finished goods stock register- product-wise.
2.3 Daily Stock Accounts (DSA) maintained under Central Excise Law
3. Raw Materials and Stores Accounting
3.1 Goods received register;
3.2 Bin cards;
3.3 Materials/stores ledgers.
3.4 Packing Materials
4. Employee Cost
4.1 Attendance registers/ sheets;
4.2 Wages/salary sheets;
4.3 Leave and gratuity payments.
5. Repairs and Maintenance
5.1 Works order register / card showing material and spares consumed and labour utilized;
5.2 Procedure followed for routine maintenance;
5.3 Details major breakdowns & Repairs;
5.4 Details of Abnormal Repairs & Reconditioning activities.
6. Utilities (Water, Steam, Power, DM Water, Air, Effluent Treatment etc.)
6.1 Records of input and output;
6.2 Record of cost centre-wise allocation of outputs.
7.1 Details such as production hours, labour hours, machine hours to facilitate distribution of overheads;
7.2 Overheads Keys.
8. Cost Accounts
8.1 Overheads analysis register;
8.2 Cost centre-wise assets register;
8.3 Product ledger;
8.4 Annexures and proformae as per rules, if any;
8.5 Reconciliation of profit/loss as per cost records and financial records. The Reconciliation Statement between cost accounts and financial accounts can also be treated as a Costing Profit & Loss Account. This statement shall normally start with the margin arrived at as per cost accounts and all other items of expenses not considered for determination of cost or incomes not considered for arriving at the margin as per cost accounts would get reflected.
9.1 Product-wise Sales analysis
9.2 Stock Transfer
9.3 Marketing/ Market Research Cost
Compiled by :
CMA Krishna Dasan A