Question

Cost sheet based on the predictable cost figures which are estimated is known as .............. .

• A. Predicted cost sheet
• B. Past cost sheet
• C. Historical cost sheet
• D. Estimated cost sheet

Hint:

Estimated = Future cost planning; Historical = Records of actual costs already incurred.

Answer 1

The Correct Option is D

In cost accounting, a cost sheet is a statement that shows the various elements of cost related to a product for a specific period or quantity.
When the cost sheet is prepared using actual figures of past costs, it is called a Historical Cost Sheet.
But when the figures are not actual but are based on forecasts and estimates for future production, it is called an Estimated Cost Sheet.
An Estimated Cost Sheet helps management plan for the future by giving an idea about expected costs and profits.
It is prepared before starting production, so that pricing, budgeting, and cost control measures can be planned in advance.
Therefore, the correct answer is Estimated Cost Sheet.