Question:
Which of the following is not indicated by cost sheet?
Which of the following is not indicated by cost sheet?
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Cost accounting deals primarily with quantitative data. While the cost sheet can tell you the cost of quality (such as rework or inspection costs), it cannot directly measure the subjective quality of the product.
Updated On: Jun 17, 2026
- Total cost of production
- Quality of the product
- Per unit cost of production
- Total quantity of production
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The Correct Option is B
Solution and Explanation
Step 1: Identifying the Nature of a Cost Sheet:
A cost sheet is a quantitative, highly structured financial statement designed to document, classify, and aggregate various cost elements (material, labor, and overheads) associated with a manufacturing process over a specified accounting period.
Step 2: Evaluating the Variables Extracted from a Cost Sheet:
• Total quantity of production (D): Used as the base divisor to calculate average rates.
• Total cost of production (A): The absolute value representing the production of a particular volume.
• Per unit cost of production (C): Derived by dividing the Total Cost of Production by the Total Quantity of Production.
Step 3: Identifying the Missing Aspect:
The physical or aesthetic “Quality of the product” (B) is a qualitative parameters. Cost sheets only capture financial data and quantitative metrics, not subjective qualities. Thus, quality is not indicated on a cost sheet. Hence, (B) is the correct option.
A cost sheet is a quantitative, highly structured financial statement designed to document, classify, and aggregate various cost elements (material, labor, and overheads) associated with a manufacturing process over a specified accounting period.
Step 2: Evaluating the Variables Extracted from a Cost Sheet:
• Total quantity of production (D): Used as the base divisor to calculate average rates.
• Total cost of production (A): The absolute value representing the production of a particular volume.
• Per unit cost of production (C): Derived by dividing the Total Cost of Production by the Total Quantity of Production.
Step 3: Identifying the Missing Aspect:
The physical or aesthetic “Quality of the product” (B) is a qualitative parameters. Cost sheets only capture financial data and quantitative metrics, not subjective qualities. Thus, quality is not indicated on a cost sheet. Hence, (B) is the correct option.
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