The correct answer is: A. cost sheet.
A cost sheet is a document that shows the costs associated with producing a product or service. It is used to calculate the cost of goods sold and the gross profit margin. The cost sheet includes the following information:
- Direct materials: The cost of the materials that are used to make the product or service.
- Direct labor: The cost of the labor that is used to make the product or service.
- Overhead: The costs of running the business that are not directly related to making the product or service, such as rent, utilities, and insurance.
The cost sheet is used to calculate the cost of goods sold, which is the cost of the products or services that a company has sold during a period. The cost of goods sold is calculated by multiplying the number of units sold by the cost per unit. The gross profit margin is the difference between the sales revenue and the cost of goods sold.
The cost sheet is a valuable tool for managers because it helps them to understand the costs associated with their products or services. This information can be used to make decisions about pricing, production, and marketing.
The other options are incorrect because they are not used to calculate the cost of contract and profit or loss thereon.
- A profit and loss account is a financial statement that shows the revenues and expenses of a company for a period. It is used to calculate the net profit or loss for the period.
- A trading account is a financial statement that shows the revenues and expenses from trading activities of a company for a period. It is used to calculate the gross profit for the period.
- A separate ledger account is a record of the transactions of a particular account. It is used to keep track of the debits and credits to the account.