Stage 9 · Special cases
CAS-22: Manufacturing Cost
GST replaced most excise in 2017, but not all of it. Where does CAS-22 still matter, and how is it different from CAS-4?
What you will learn in CAS-22
- Purpose and scope after GST (§§1–3)
- Measuring manufacturing cost (§5)
- Normal or actual, whichever higher (§§6.3, 6.4)
Chapters
- After GST, where does CAS-22 still apply? · Find the goods that still pay excise (§§1–4)
- The higher of normal or actual · Charge fixed overheads without letting idle time in (§§5, 5.20, 6.3, 6.4, 7.1.1)
- Spot the mistakes in the excise cost statement · The last challenge of the course (§§5.20, 6.3, 6.4)
Key terms
- Manufacturing cost (§§1–4): The cost of making goods that pay excise: material, people, direct expenses, utilities, and the factory overheads needed to make them, less recoveries. The same building blocks as CAS-4.
- Capacity and exclusions (§§5, 5.20, 6.3, 6.4, 7.1.1): Variable overheads are charged on actual production. Fixed overheads on normal capacity or actual production, whichever is higher. Finance costs, unusual costs, penalties and selling costs are not manufacturing cost. Capacity use is shown in the statement.
Common questions
Is CAS-22 still relevant after GST?
Yes, for goods that still attract central excise duty, such as certain petroleum products and tobacco. For GST valuation based on cost, CAS-4 is used.
CAS-22 (Revised 2017), Manufacturing Cost. Checked against the standard in November 2026. The lubricant blending unit and every figure in this lesson are fictional. Read the official text on the ICMAI Cost Accounting Standards page ↗ before applying it to real work.