Cost Estimation is a statement that gives the value of the cost incurred in the manufacturing of finished goods. To view the cost estimation of a particular finished product, select the relevant Stock Group which will display the stock consumption details and cost thereof for each of the stock items falling under that Group.
Cost estimation helps in fixing the selling price of the final product after charging appropriate overheads and allowing certain margin for profits. It also helps in Inventory Reports drawing conclusions regarding the cost of production and in determining the necessity to introduce cost reduction techniques in order to improve the manufacturing process.
To view Cost Estimation
● Go to Gateway of Tally > Display > Statements of Inventory > Cost Estimation . The Item Estimates screen appears shown below:
The F:12 Configuration menu appears as shown below
● Show Quantities : On Enabling this option displays the Quantity of each Stock Item will be shown in the Cost Estimation report.
● Show Cost : On Enabling this option displays the Cost of the Stock Item in the report.
● Show Amount : On Enabling this option displays the Amount of the Stock Item in the report.
● Show Using Alternate Units : On Enabling this option displays Alternate Units of measurement of a Stock Item if any.
● Show Tail Units of Compound : On Enabling this option displays Tail Units of Compound of a Stock Item if any.
● Appearance of Stock Item Names : This option controls the view on the appearance of the stock Item.
● Appearance of Names : This option controls the view on the appearance of the Stock Group.
● Sorting Method : This option sorts the Stock Item in Alphabetical(Increasing& Decreasing), Amount-wise(Increasing & Decreasing) , Quantity –wise(Increasing & Decreasing), Rate –wise(increasing & Decreasing).
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