Copst of production under CAS-4

[Asked by Guest]

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

Cost of production under CAS-4: follow CAS guidance and obtain qualified cost accountant advice on overhead allocation.
Allocation of overheads for cost of production under CAS-4 must follow the CAS-4 Guidance Note and the judgment of a qualified cost accountant; mechanical pro rata reductions based solely on current capacity utilisation are not to be adopted without confirming conformity with CAS-4 allocation methodology and supporting records.