Cost sheet

A. Guidance from the Standard Cost Sheet Straightforward... 

The simplest economic model for the guidance of the catalyst chemist is the standard cost sheet. This lists the variable costs (raw materials), fixed costs (capital charges) and semi-variable costs (conversion expense). Typically, these three elements may represent similar proportions of the overall cost per ton of product, but the circumstances following successful catalyst research can vary widely. 

Typical Effects of Catalyst Invention on Cost Sheet... 

The items may also be classified differently in cost sheets and cost standards prepared to monitor the performance of the operating plant. For this purpose the fixed-cost items should be those over which the plant supervision has no control, and the variable items those for which they can be held accountable. 

Each business corporation has its own method for distributing the costs on its accounts. In any case, all costs are entered in the appropriate journal account, posted in the ledger, and ultimately reported in a final cost sheet or cost statement. 

Monthly cost sheets and expense reports vs. budget New sales forecasts... 

Working capital funds, Cwc. are needed to cover operating costs required for the early operation of the plant, including the cost of the inventory and funds to cover accounts receivable. Because they involve the costs of the raw materials and the values of the intermediates, products, and byproducts, the working capital is normally estimated in connection with the calculation of the operating Cost Sheet , which is presented in Table 17.1 and discussed in Section 17.3. Note that funds are usually allocated for a spare charge of catalyst, often kept in a warehouse, as a backup in case an operating problem causes the catalyst to become ineffective. 

Be able to estimate annual costs using a standard cost sheet and estimate the annual cash flows and the working capital. The latter completes the estimation of the total capital investment, Ctci. in Table 16.9. 

Having completed an estimate for the total permanent investment, Cjpi, in Table 16.9, of a proposed plant, it remains to estimate the total annual sales revenue, S, the total annual production cost, C, and the annual pre-tax and after-tax earnings. This includes the development of the so-called Cost Sheet. Then the working capital can be estimated and added to the total permanent investment to give the total capital investment for the plant, as shown in Table 16.9. These provide the ingredients for an approximate measure of economic goodness, called the return on investment, defined by... 

Annual Sales Revenues, Production Costs, and the Cost Sheet 565... 

ANNUAL SALES REVENUES, PRODUCTION COSTS, AND THE COST SHEET... 

Many continuing costs are associated with the operation of a chemical plant. These are included in the cost sheet shown in Table 17.1, which is patterned after one prepared by Busche (1995) and includes representative unit costs (typical factors) that can be used for early estimates when more exact costs are not available. 

Estimate annual costs using a standard cost sheet like that in Table 17.1. 

Operating Cost and Economic Analysis. This section begins with a presentation of the annual costs of operating the proposed plant, that is, the cost sheet, as discussed in Section 17.2 and shown in Table 17.1. In addition to the total production cost on the cost sheet, it should provide an estimate of the cost per unit weight of the product (e.g., per lb, kg, ton, or tonne). Note that when cash flows are computed for different production rates from year to year, a separate cost sheet is required for each unique production rate. Note also that, in addition to appearing on the cost sheet, the utilities for each equipment unit and their costs should be sununarized in a separate table. 

When left-clicking within the Other Variable Costs section, the General Expenses dialog box appears, which permits the specification of percentages of product sales charged for selling/transfer expenses, direct research, allocated research, administrative expenses, and management incentives compensation. The defaults shown are those in the cost sheet of Table 17.1 and discussed in Section 17.2. 

Low cost sheet materials are virtually free of molded-in stresses i.e., they are isotropic... 

---