Stage 6 · The cost of one product
CAS-4: Cost of Production
Every lesson so far comes together in one certified statement. What does it really cost to make a school uniform?
What you will learn in CAS-4
- Building the Appendix 1 statement (§§5, 7.1)
- Exclusions, scrap, rework and free inputs (§§5.5, 5.19–5.28)
- Capacity for fixed overheads (§§5.27, 6.4, 6.5)
- GST valuation and certification (§§7.4–7.8)
Chapters
- The full cost of one product · Build the certified statement, line by line (§§5.1–5.18, 6.1, 7.1, Appendix 1)
- What stays out, and why it matters for GST · Sort the tricky items (§§5.5, 5.19–5.28, 6.4, 6.5, 7.4–7.8)
- Certify the cost statement · You are the Cost Accountant signing it (§§5.20, 5.21, 5.27, 5.28)
Key terms
- Cost of production (§§5.1–5.18, 6.1, 7.1, Appendix 1): Worked out separately for each kind of product or service: all the direct and indirect costs of making it, at normal levels, set out in the Appendix 1 format.
- Exclusions, capacity and certification (§§5.19–5.28, 6.4, 6.5, 7.4–7.8): Out: unusual costs, interest, impairment, pretend costs, fines and demurrage. Variable overheads on what was actually made; fixed overheads on normal or actual capacity, whichever is higher. A Cost Accountant in practice certifies the statement, which helps fix the GST value.
Common questions
Why does CAS-4 matter for GST?
A certified CAS-4 statement helps determine the value of taxable goods or services at the time of supply, for example where GST valuation is based on cost (para 7.4).
Who certifies a CAS-4 cost statement?
Management prepares and signs it; a Cost Accountant in practice certifies it (paras 7.7, 7.8).
CAS-4 (Revised 2018), Cost of Production / Acquisition / Supply of Goods / Provision of Services. Checked against the standard in November 2026. Selvi Garments, the school order 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.