Cost Sheet is a statement prepared at given intervals of time which provides information regarding elements of cost incurred in production. The most appropriate accounting treatment of carriage. 2 Are repairs to office equipment and factory equipment period costs. . Dismiss Try Ask an Expert. The information about gross profit and net sales is normally available from income statement of the company. Direct expenses can be allocated to a specific product department or segment. It is important to prepare Profit and Loss statement because this information helps an organisation to take the right business decision like where should we do the cost-cutting from where can a. Direct labor is the gross wage cost of all the labor associated with. Should inventories be reported at their cost or at their selling prices. Also known as pre-operative expenses preliminary expenses are shown on the asset side of a balance s...