Course Outcomes |
Learning and teaching strategies |
Assessment Strategies |
On completion of this course, the students will be able to: CO7: Understand thoroughly the conceptual framework of Management Accounting; identification of differences between Cost Accounting and Financial Accounting. CO8: Devise the basic concepts and processes used to determine product costs. CO9: Formulate methods to interpret cost accounting concept to be followed in case of labor. CO10: Evaluate the concept of overhead costing and understand how to allocate it on various heads. CO11: Analyze and evaluate the information for process costing. CO12: Outline different types of activity-based management tools through the preparation of estimates.
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Interactive Lectures, Discussion, Tutorials, assignments, Self-learning assignments, Effective questions, Giving tasks, Solving numerical problems
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Class test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments, Individual projects |
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 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:
Accounting for overheads:
Process costing:
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
Cost Accounting Methods