Advanced Cost Accounting

Paper Code: 
25CATG513
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

This course will enable the students to analyze complex cost structures, implement advanced costing techniques, and make informed managerial decisions in dynamic business environments.

Course Outcomes: 

Course

Learning outcome

(at course level)

Learning and teaching strategies

Assessment Strategies

Course Code

Course title

25CATG513

Advanced Cost Accounting (Theory)

 

CO157: Apply the concept of service costing to determine the cost and profit in a service industry.

CO158: Analyze the process and flow of accounts from one process to another, and apply the concepts to ascertain profit or loss.

CO159: Apply equivalent production concepts and understand marginal costing principles.. 

CO160: Analyze decision-making processes using relevant cost analysis and differential cost analysis

CO161: Evaluate production decisions and pricing strategies in special circumstances.

CO162: Contribute effectively in course-specific interaction

Approach in teaching: Interactive Lectures, Discussion,

Tutorials,

Reading

assignments; Solving

Questions.

Learning activities

for the

students:

Self learning

assignments, Effective questions,

Seminar

presentation.

Class test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments, Presentation, Individual and group projects.

 

12.00
Unit I: 
Service Costing in Various Industries

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

12.00
Unit II: 
Process Costing and Treatment of Losses

• Process Costing
• Meaning of Process costing
• Procedure Treatment of Normal and Abnormal Loss and Abnormal Gains
• Accounts for Normal and Abnormal loss and Abnormal Gain
• Inter process Profit
• Joint and By Product Costing

12.00
Unit III: 
Equivalent Production and Marginal Costing

• Equivalent Production
• Treatment of W.I.P. on FIFO and Weighted Average Method
• Marginal Costing
• Meaning and objectives
• Break – even Analysis
• Cost – Volume – Profit Analysis

12.00
Unit IV: 
Decision Making using Marginal Costing

• Relevant cost analysis,
• Differential cost analysis
• Stock valuation under marginal costing versus absorption costing.
• Decisions based on Marginal Costing like Make or Buy, Own or Lease, Shut down or continue.

12.00
Unit V: 
Production and Pricing Decisions

• Production Decisions
• Dropping or adding a product
• Determining the most beneficial product mix
• Production method to be adopted
• Pricing decisions in special circumstances like sale below cost, export pricing, dumping and inflation

Essential Readings: 

● Jain, Khandelwal & Pareek Cost Accounting Ajmera Book Company , Jaipur
● Oswal, Maheshwari & Modi Advance Cost Accounting Ramesh Book Depot
● Jawahar Lal Cost Accounting Tata Mcgraw Hill , New Delhi

References: 

● Nigam, B.M Lall & Jain, I.C. Cost Accounting ,PHI , New Delhi
● Banerjee, B. Cost Accounting Theory and Practice PHI , New Delhi
● Agarwal, Jain, Sharma, Shah & Mangal Cost Accounting Ramesh Book Depot , Jaipur
● Arora , M.N, Cost Accounting Principles and Practice Vikas Publication , New Delhi

e-Resources:
● https://devlibrary.in/managerial and cost accounting/
● https://www.icsi.edu/media/website/CostAndManagementAccounting.pdf
● https://books.google.com/books/about/Cost_Accounting_Text_and_Problems.h...

Reference Journals:
● The Indian Journal of Commerce
● FIIB Business Review

Academic Year: 
2025-2026
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