What is a tour cost sheet?
The cost for developing a package tour decides the final price of the package. The sale of the package tour is a direct function of direct or indirect costs or. fixed and variable costs. The tour cost is explained as the sum total of cost. incurred to combine related and complementary services.
What is cost sheet and its purpose?
The main objective of the cost sheet is to ascertain the cost of a product. The cost sheet helps in the ascertainment of cost to determine cost after they are incurred. It also helps to ascertain the actual cost or estimated cost of a Job.
What are the advantages of cost system?
2. Cost Accounting Can Improve Cost-Efficiency. Perhaps the greatest benefit of implementing cost accounting is its ability to reduce costs and improve cost-efficiency without reducing the level of production. It can streamline processes to help identify waste factors, such as wasted time or surplus resources.
What are the important features of a cost sheet?
A Cost Sheet depicts the following facts:
Total cost and cost per unit for a product. The various elements of cost such as prime cost, factory cost, production cost, cost of goods sold, total cost, etc. Percentage of every expenditure to the total cost.
How tour cost is calculated explain?
Calculation of Tour Cost
To find out the per person cost of the tour you have to divide the total tour cost by the total number of people travelling for the tour. So here, Rs. 22706 if divided by 14 people (12 students and 2 faculty), the per person cost comes to Rs.
What are the factors that influence Tour costing?
However, the purchase price of a travel product is based on three factors: Cost, competition, and demand. Every tour package sold by a vendor has a quantifiable cost. To produce profit the price paid by the tourists must be greater than the agency’s cost.
How does a cost sheet help find the tender price?
This price is ascertained on the basis of previous cost sheet or production account. In ascertaining expected cost in the future, the items of previous elements of cost are considered with due regard to expected changes in the future. Estimated cost is increased by desired profit to ascertain tender price or quotation.
How do you prepare a cost sheet?
Method of Preparation of Cost Sheet:
Step I = Prime Cost = Direct Material + Direct Labour + Direct Expenses. ADVERTISEMENTS: Step II = Works Cost = Prime Cost + Factory/Indirect Expenses. Step III = Cost of Production = Works Cost + Office and Administration Expenses.
What are advantages of cost accounting?
Cost accounting provides us reliable comparison of products and services within and outside an organization with the products and services available in the market. It also helps to achieve the lowest cost level of product with highest efficiency level of operations.
What are the advantages of current cost accounting?
Advantages of Cost Accounting
- Elimination of Wastes, Losses and Inefficiencies. …
- Cost Reduction. …
- Identify the reasons for Profit or Loss. …
- Advises on Make or Buy Decision. …
- Price Fixation. …
- Cost Control. …
- Assist the Government. …
- Help the Trade Union.
What are advantages of cost accounting over financial accounting?
One of the biggest advantages of cost accounting is that it will help the management with future plans they may have. For any production or selling plans, it is important to have detailed data about the machines, the labour capacity, output levels, levels of efficiency of each process etc.