Copst of production under CAS-4

[Swapneswar muduli]

Dear Sir,

Can any one explain me when we calculate the cost of production under CAS-4 if our factory running at 50% of Capacity utilization can we consider 50% of Overhead for calculation of Cost of production?

Regards

Swapneswar Muduli

AI Summary

Debate on CAS-4: Should only 50% of overheads be used for cost calculation at half-capacity operation? A query was raised regarding the calculation of production costs under CAS-4 when a factory operates at 50% capacity. The question was whether only 50% of overheads should be considered in the cost calculation. One response suggested consulting a cost accountant rather than seeking answers in the forum. Another recommended referring to the CAS-4 Guidance Note or consulting a cost accountant. The final response opined that 50% of overheads should not be considered in the calculation.