Coming soon
Cost Accounting
The objective of this course is to familiarize students with basic costing concepts and tools used in cost accounting
- Cost classification Production and nonproduction costs.
- Elements of non production costs- administrative, selling, distribution and finance. Elements of production cost- materials,
- labour and overheads Importance of the distinction between production and non production costs when valuing output and inventories.
- Classification of cost - direct and indirect, fixed and variable, stepped fixed and semi variable costs.
- Graphical presentation of types of cost behavior Use high/low analysis to separate the fixed and variable elements of total costs Structure of linear functions and equations.
- Concept of cost objects, cost units and cost centres. Distinguish between cost, profit, investment and revenue centres.
- Needs for information of cost, profit, investment and revenue centre
- Accounting for material Accounting for materials- Procedures for the ordering, receiving and issuing of materials.
- Control procedures to minimise discrepancies and losses of material.
- Material inventory account Identify, explain and calculate the costs of ordering and holding inventory (including buffer inventory) Optimal reorder quantities (including discounts)
- Calculations to minimize inventory costs when inventory is gradually replenishes Reorder levels
- Valuation of closing inventory and material issues using LIFO, FIFO and average methods
- Accounting for Labour- Direct and Indirect Labour cost
- journal and ledger entries to record labour cost inputs and outputs, remuneration methods- individual plans and group incentive schemes
- Cost and causes of labour turnover, calculation of labour efficiency, capacity and production volume ratios.
- Treatment of direct and indirect expenses, production overhead absorption rates
- Allocation, apportionment and absorption of production overheads.
- Under and over absorption of overheads
- Characteristics, concept, use of process costing
- Normal and abnormal losses and abnormal gains
- Calculate the cost per unit of process outputs, process accounts involving normal and abnormal losses and abnormal gains
- Concept of equivalent units
- Prepare process accounts in different situations where work remains incomplete.
- Distinguish between by-products and joint products.
- Value by-products and joint products at the point of separation
- Absorption and marginal costing
- Importance and concept of contribution
- Calculate and reconcile profit or loss under absorption and marginal costing
- Advantages and disadvantages of absorption and marginal costing
- Job and batch costing: Meaning, concept, characteristics and use of job and batch costing
- Alternative Cost Accounting principles
- Activity based costing (ABC), target costing, life cycle costing and total quality management (TQM)
- Differentiate ABC, Target costing and life cycle costing from the traditional costing techniques
- Service/operation costing-
- Use of service/operation costing is appropriate.
- Carry out service cost analysis in simple service industry situations
ACCA study material
• Cost Accounting: Jain, Khandelwal & Pareek, (Ajmera Book Company, Jaipur)
• Cost Accounting: Agarwal, Jain, Sharma, Shah & Mangal,(Ramesh Book Depot, Jaipur ) Cost Accounting Principles and Practice: M.N. Arora, (Vikas Publication, New Delhi)
• Cost Accounting: Ravi M Kishore ( Taxmann’s-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-S.N Maheshwari, (Mahavir Publication)
• Cost Accounting:Jawahar Lal, (Tata Mcgraw Hill, New Delhi)
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
