TMI BlogCost of Service Cost CentreX X X X Extracts X X X X X X X X Extracts X X X X ..... xcludes Utilities and Repairs Maintenance Services dealt with in CAS-8 and CAS-12 respectively. 1.3 This standard deals with the principles and methods of classification, measurement and assignment of Cost of Service Cost Centre, for determination of the Cost of product or service, and the presentation and disclosure in cost statements. Objective 2. The objective of this standard is to bring uniformity and consistency in the principles and methods of determining the Cost of Service Cost Centre with reasonable accuracy. Scope 3. This standard should be applied to the preparation and presentation of cost statements, which require classification, measurement and assignment of Cost of Service Cost Centre, including those requir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er short term and long-term borrowings, amortisation of discounts or premium related to borrowings, amortisation of ancillary cost incurred in connection with the arrangements of borrowings, finance charges in respect of finance leases, other similar arrangements and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest costs 6 . The terms Finance costs and Borrowing costs are used interchangeably. 4.6 Imputed Costs: Hypothetical or notional costs, not involving cash outlay, computed for any purpose. 7 4.7 Marketing overheads: Marketing Overheads are also known as Selling and Distribution Overheads. 4.8 Normal capacity: Normal Capacity is the production ach ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t object computed with reference to set of technical specifications and efficient operating conditions. 11 Standard costs are used as scale of reference to compare the actual costs with the standard cost with a view to determine the variances, if any, and analyse the causes of variances and take proper measure to control them. Standard costs are also used for estimation. 4.13 Stand-by service: Any facility created to safeguard against the failure of the main source of service. 5. Principles of Measurement 5.1 Each identifiable service cost centre shall be treated as a distinct cost object for measurement of the cost of services subject to the principle of materiality. 5.2.1 Cost of service cost centre shall be the aggreg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervice Cost Centre shall not form part of the cost of Service Cost Centre. 5.4 The cost of service cost centre shall not include imputed costs. 5.5 Where the cost of service cost centre is accounted at standard cost, the price and usage variances related to the services cost Centre shall be treated as part of cost of services. Usage variances due to abnormal reasons shall be treated as part of abnormal cost. 5.6 Any Subsidy / Grant / Incentive or any such payment received / receivable with respect to any service cost centre shall be reduced for ascertainment of the cost to which such amounts are related. 5.7 The cost of production and distribution of the service shall be determined based on the normal capacity or actual capacity ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from logical parameters which could be related to the usage of the service rendered. The parameter shall be equitable, reasonable and consistent. 7. Presentation 7.1 Cost of service cost centre shall be presented as a separate cost head for each type of service in the cost statement, if material. 8. Disclosures 8.1 The cost statements shall disclose the following: 1. The basis of distribution of cost of each service cost centre to the consuming centres. 2. The cost of purchase, production, distribution, marketing and price of services with reference to sales to outside parties 3. Where the cost of service cost centre is disclosed at standard cost, the price and usage variances 4. The cost of services received ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
