Page 23 - DCOM206_COST_ACCOUNTING_II

Cost Accounting – II

Notes (2) Total no. of shows during the year = 365 × 3 = 1,095
(3) Calculation of Total Man-Shows:
Class No. of Seats × No. of Shows × Weightage = Man-Show
Third class 200 × 1,095 × 1 = 2,19,000

Second class 150 × 1,095 × 2 = 3,28,500
First class 80 × 1,095 × 3 = 2,62,800
Total Man-Shows 8,10,300

(4) Calculation of Rate Per Men Show:
Cost per man-show (stated above) 0.7054
Add: Profit (33.33 % of gross proceeds or 50% of cost) 0.3527
Rate per man-show 1.0581 or 1.06

(5) Rate (with weightage) for Different Classes:
Third class = 1.06 × 1 = 1.06

Second class = 1.06 × 2 = 2.12
First class = 1.06 × 3 = 3.18

1.4.6 Canteen Costing

A canteen is established in most of the industries for welfare facility. Generally, they are either
partly or fully subsidies. A supervisor is usually made responsible for the running of a canteen.
He is held accountable to the factory manager or the personnel manager of the industry. A
canteen serves meals, tea and coffee, etc.

Objectives of Canteen Costing
The main objectives of canteen costing are:

(i) To calculate cost of per lunch, dinner, etc. per day,
(ii) Inter comparison between two or more canteens,
(iii) Analysis of cost of canteen for decision-making, and

(iv) Collection of various types of cost data for cost control of canteen.
Collection of Cost Data

The collections of costs are done under account headings. The main account headings used for
the purpose are given hereunder:
(a) Provision: Rice, flour, meat, fish, eggs, vegetables, vegetable oil, fruits, soft drinks, coffee,
sugar, tea, spices, milk, etc.
(b) Labour: Supervisor, kitchen assistants, cooks, porters, waiters, sweepers, brushes, cleaning
materials, disinfectants, etc.

(c) Services: Power, gas, steam, water, electricity, etc.

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