Costing of advertisement income

[ajay singh]

Dear Professionals,

How to charge the advertisement income in the print media industry as per the costing regulation.

[Surender Gupta]

Being a practicing cost accountant, you may like to put some light on this issue. What is your understanding and what should be?

[ajay singh]

Dear All,

As the advertisement income in print media is one of the major income of selling newspaper and magazines, so we have to increase the sales revenue of the products but it is not feasible to allocate directly on the per unit of sale of products.

Regards,

CMA Ajay Kumar Singh

AI Summary

Advertisement income costing: allocating print media advertising receipts when per unit allocation is impracticable under costing rules. Costing of advertisement income in print media presents an allocation problem: advertising receipts are a major revenue source but cannot be feasibly allocated per unit sold. The query seeks a costing regulation compliant method for recognising and allocating advertisement income within product costing, and requests cost accounting practitioner guidance on suitable methodologies when direct per unit assignment is impracticable.