Advanced Cost Accounting

Paper Code: 
ATG 217
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

The objective of this course to understand costing procedure involved in cost ascertainment system.

COURSE OUTCOMES (COs):

Course

Learning outcome

 (at course level)

Learning and teaching strategies

Assessment Strategies

Paper Code

Paper Title

ATG  217

Advanced Cost Accounting

CO 73:Analyse the cost ascertain, reduce and control cost in service industries and processing sectors. 

CO 74: Evaluate the profits disclosed by financial and cost accounting to facilitate reconciliation.

CO 75: Investigate how cost-volume-profit are related and use CVP analysis as a planning and decision making aid

CO 76: Analyze and evaluate information for cost ascertainment, planning, control and decision making

CO 77: Evaluate the appropriate method of costing and apply it in real life situations with the help of simple case studies.

Approach in teaching:

Interactive Lectures, Discussion, Tutorials, assignments.

 

Learning activities for the students:

Self learning assignments, Effective questions,  Giving tasks, Solving numerical problems

 

Class test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments,  Individual projects

 

9.00
Unit I: 
Service Costing (Operating Costing):

Meaning of Service Cost, Service costing in  case of Transporters, Boiler house, Hospitals, Canteens and Hotels.

Reconciliation of Cost & Financial Statements: Causes of differences, Procedure of Reconciliation of the results of Cost and Financial Accounts, Reconciliation Statement and Memorandum Reconciliation Account.

9.00
Unit II: 
Process Costing:

Meaning ofProcess costing, Procedure Treatment of Normal and Abnormal Loss and Abnormal Gains, Valuation and Accounting of Completed Process Stocks,

Inter process profit

Joint and By Product Costing: Methods of treatment of By- product, Methods of apportionment of Joint Cost

9.00
Unit III: 
Equivalent Production

 Treatment of W.I.P. on FIFO and Weighted Average Method.

Cost Control Accounts: Costing Books, Advantages and disadvantages, Ledgers to be maintained, Journal Entries.

Integrated accounts: Integrated Accounting, Procedure, Integrated accounts vs. Cost and Financial accounts.

9.00
Unit IV: 
Marginal Costing Techniques:

Marginal cost, Stock valuation under marginal costing versus differential costing and absorption costing .Cost Volume Profit Analysis: break even analysis, Break even chart, Cost indifference point

9.00
Unit V: 
Application of Marginal Costing Techniques:

Decisions based on Marginal Costing like Make or Buy, Retain or Replace Asset,  Own or Lease, Shut down or Continue, Capturing foreign market, Dropping or adding a product, Determining the most beneficial product mix, Selection of Equipments.

Essential Readings: 
  1. Advance Cost Accounting: Oswal, Maheshwari, Modi (Ramesh Book Depot)
  2. Cost Accounting: Jawahar Lal, Tata Mcgraw Hill, New Delhi
  3. Cost Accounting Principles and Practice: M.N. Arora, Vikas Publication, New Delhi

 

References: 
  1. Cost Accounting: B.M Lall Nigam, I.C. Jain, PHI, New Delhi
  2. Cost Accounting Theory and Practice: Bhabatosh Banerjee, PHI, New Delhi
  3. Cost Accounting: Agarwal, Jain, Sharma, Shah and Mangal, Ramesh Book Depot, Jaipur
  4. Cost Accounting: Jain, Khandelwal &Pareek, Ajmera Book Company, Jaipur

 

Note- The candidate shall be permitted to use battery operated pocket calculator that should not have more than 12 digits, 6 functions and 2 memories and should be noiseless and cordless

 

Academic Year: 
2021-2022
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