Cost Accounting

Paper Code: 
COM 102
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

The objective of this course is to familiarize students with basic costing concepts and tools used in cost accounting.

Course

Learning Outcome

(at course level)

Learning and teaching strategies

Assessment Strategies

Paper Code

Paper Title

COM 102

Cost Accounting

CO 6: Examine the items of expenditure to identify the different types of cost in a manufacturing unit. 

CO 7: Evaluate the material cost and labour cost  and justify the use of various inventory control methods and wage rate system

CO8:Analyze the overheads for its proper  apportionment, allocation and absorption 

CO 9: Create cost sheet for effectively ascertaining the cost of products using Unit costing method.

CO 10:Analyse different types of cost related to contracts and be able to compute the Cost of construction contracts

Approach in teaching:

Interactive Lectures, Discussion, Tutorials, Reading assignments & Solving Questions.

 

Learning activities for the students:

Self learning assignments, Effective questions, Seminar presentation, Giving tasks.

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

 

9.00
Unit I: 
Introduction

Introduction: Meaning and definition of cost accountancy, Nature and Scope of Cost Accounting, Cost Concepts, Distinction between Financial and Cost Accounting.
Introduction to Cost accounting standards: Objectives and advantages of cost accounting standards
Elements of Cost, Cost Statements: An Introduction
Material: Material Cost Management, Need for Efficient Purchasing, Storing of Materials, Methods of Inventory Control, Some Specific Techniques Related to Operating Control System viz. ABC Analysis, VED Analysis, JIT, FSN, Material Cost and its Components, Economic Order Quantity, Inventory Levels i.e. Reorder Level, Maximum Stock Level, Minimum Stock Level, Average Stock Level, Methods of Issue Pricing i.e. LIFO, FIFO, Simple Average, Weighted Average, HIFO, Standard Price And Base Stock Method

9.00
Unit II: 
Labour

Labour: Recruitment, Recording of time and wages, Time Keeping and Time booking, Job Evaluation and Merit rating, Labour Turnover: meaning and nature, Methods of calculating Labour Turnover, Methods of remunerating Labour, Incentive Plans, Allocation of wages, Idle Time: meaning and causes, Treatment of idle time andover time

9.00
Unit III: 
Overhead

Overhead: Meaning, Collection, Classification, Apportionment, Allocation and Absorption of overheads; Treatment of interest on capital, research and development expenses.

9.00
Unit IV: 
Single Output or Unit Costing

Single Output or Unit Costing: Cost sheet, Adjustments in cost sheet, Treatment of Scrap, defectives, Absorption of overheads and calculation of Tender price, Job Costing

9.00
Unit V: 
Contract Costing

Contract Costing: Contract accounting, Methods of determining contract price, Escalation clause, profit on incomplete contracts and different types ofproblems related to contract

Essential Readings: 

1. Cost Accounting: Jain, Khandelwal & Pareek, (Ajmera Book Company, Jaipur)
2. Cost Accounting: Agarwal, Jain, Sharma, Shah & Mangal,(Ramesh Book Depot, Jaipur )
3. Cost Accounting Principles and Practice: M.N. Arora, (Vikas Publication, New Delhi)
4. Cost Accounting: Ravi M Kishore ( Taxmann’s-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-S.N Maheshwari, (Mahavir Publication)
4. Cost Accounting: Jawahar Lal, (Tata Mcgraw Hill, New Delhi)
5. Cost Accounting: J. Madegowda ( Himalaya Publishing House)

Academic Year: 
2021-2022
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