CAS-8 Standard: Guidelines for Utility Cost Accounting in Manufacturing Processes; Excludes Finance, Abnormal Costs, Penalties.

The Cost Accounting Standard 8 (CAS-8) issued by the Institute of Cost Accountants of India outlines principles for determining the cost of utilities in manufacturing processes. It provides guidelines on classification, measurement, and assignment of utility costs, including power, steam, and water, for accurate cost determination and disclosure in cost statements. The standard mandates companies to maintain cost records if they exceed specified financial thresholds or are listed on stock exchanges. It excludes finance costs, abnormal costs, and penalties from utility costs and requires disclosure of subsidies, inter-company transfers, and any changes in accounting principles. CAS-8 is not applicable to entities primarily engaged in utility generation and sale.

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