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Costing Final PPT

Operating costing involves fixed and variable costs for services rendered. It is used by service organizations and for internal services. Some key cost elements are standing or fixed charges, maintenance charges, and operating or running costs. While it is easy to understand and utilizes unit costs, it can be more time consuming to collect costing data. Examples of operating costing applications include motor transport, hospital, hotel, and canteen services.

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Girdhar Adhikari
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29 views

Costing Final PPT

Operating costing involves fixed and variable costs for services rendered. It is used by service organizations and for internal services. Some key cost elements are standing or fixed charges, maintenance charges, and operating or running costs. While it is easy to understand and utilizes unit costs, it can be more time consuming to collect costing data. Examples of operating costing applications include motor transport, hospital, hotel, and canteen services.

Uploaded by

Girdhar Adhikari
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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SERVICE COSTING

Girdhar Adhikari (63)


Pooja Botadra (69)
Sanchita Attawar (67)
Sumit Dadhich (73)
Bhavna Agarwal (65)
Pratik Chhadva (71)
WHAT IS OPERATING
COSTING?

FEATURES OF OPERATING COSTING:

Involves fixed & variable costs

No accounting for inventories

Depends on services rendered

Uniformity of services
USERS OF OPERATING COSTING

 SERVICE ORGANISATION

 INTERNAL SERVICE

COST CLASSIFICATION
STANDING OR FIXED CHARGES

MAINTENANCE CHARGES

OPERATING OR RUNNING COST


ADVANTAGES &
DISADVANTAGES

ADVANTAGES

 Easy to understand
 Utilizes unit cost rather than just total cost

DISADVANTAGE

 More time consuming to collect data


MOTOR TRANSPORT COSTING

SELECTION OF COST UNIT:

 Rate per km
 Rate per hour
 Rate per passenger km
Rate per ton-km
EXAMPLE RELATING TO A
PASSENGER TRANSPORT
COMPANY

SURAJ TRANSPORT
HOSPITAL COSTING

SELECTION OF COST UNIT:

 BED DAYS AVAILABLE


EXAMPLE RELATING TO
HOSPITAL SERVICES

LAYO HOSPITAL
HOTEL COSTING

SELECTION OF COST UNIT:

 COST UNIT PER NIGHT


EXAMPLE RELATING TO
HOTEL SERVICES

GTC HOTELS
CANTEEN COSTING

MAIN RECORDS:

STOCK REGISTER

WAGE ANALYSIS SHEET

OVERHEAD ANALYSIS SHEET


EXAMPLE RELATING TO
CANTEEN SERVICES

STAFF CANTEEN
REFERENCE

 COST ACCOUNTING – PRINCIPLES AND PRACTICE


by Manash Datta

 COST MANAGEMENT
by Ravi .M .Kishore

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