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 1:Demonstrate knowledge of the nature of process costing and the role of spoilage/scrap and rework and apply these concepts in practice

CO 2:Ascertain, reduce and control the cost during the course of production

CO 3:Asses how cost-volume-profit are related and use CVP analysis as a planning and decision making aid

CO 4:Explains how to analyze and evaluate information for cost ascertainment, planning, control and decision making

CO 5: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: 
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: 
Unit II: Process Costing:
  • Meaning of pocess 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: 
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: 
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: 
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.
References: 
  • Advance Cost Accounting: Oswal, Maheshwari, Modi (Ramesh Book Depot)
  • Cost Accounting: Jawahar Lal, Tata Mcgraw Hill, New Delhi
  • Cost Accounting Principles and Practice: M.N. Arora, Vikas Publication, New Delhi
  • Cost Accounting: B.M Lall Nigam, I.C. Jain, PHI, New Delhi
  • Cost Accounting Theory and Practice: Bhabatosh Banerjee, PHI, New Delhi
  • Cost Accounting: Agarwal, Jain, Sharma, Shah and Mangal, Ramesh Book Depot, Jaipur
  • Cost Accounting: Jain, Khandelwal &Pareek, Ajmera Book Company, Jaipur

 

Academic Year: 
2020-2021
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