Cost Accounting

I Introduction to Cost Accounting-
(i) Objective and scope of cost accounting,
(ii) Cost Centres and Cost Units,
(iii) Cost Classification for stock valuation, profit measurement, decision making and control,
(iv) Coding systems,
(v) Elements of cost,
(vi) Cost Behaviour Pattern, Separation of Components of semi-variable costs,
(i) Installation of a costing system,
(ii) Relationship of cost accounting, financial accounting, management accounting and financial management
Material Cost:
(i) Procurement Procedures- Store procedures and documentation in respect of receipts and issue of stock, stock verification
(ii) Inventory Control-techniques of fixing of minimum, maximum and reorder levels, economic order quantity, ABC classification, stock taking and perpetual inventory
(iii) Inventory accounting
(iv) Consumption- identification with products of cost centres, basis for consumption entries in financial accounts, monitoring consumption

II Employee Cost:
(i) Attendance and payroll procedures, overview of statutory requirements, overtime, idle time and incentives
(ii) Labour Turnover
(iii) Utilisation of Labour, Direct and Indirect Labour, Charging of Labours Cost, Identifying labour hours with work orders or batches or capital jobs
(iv) Efficiency rating procedures
(v) Remuneration system and incentive schemes
Direct Expenses
Sub-contracting-control on material movements, identification with the main product or service
Overheads
(i) Functional Analysis-Factory, administration, selling, distribution, research and development
(ii) Behavioural Analysis- Fixed, Variable, Semi Variable and step cost
(iii) Factory Overheads- Primary Distirbution and secondary distribution, criteria for choosing suitable basis for allotment, capacity cost adjustments, fixed absorption rates for absorbing overheads to products or services
(iv) Administration Overheads-method of allocation to cost centres, or products
(v) Selling and Distribution Overheads- analysis and absorption of the expenses in products/customers, impact of marketing strategies, cost effectiveness of various methods of sales promotion

III Cost Book-Keeping
Cost Ledgers-non integrated accounts, integrated accounts, reconciliation of cost and financial accounts
Costing Systems
(i) Job Costing- Job cost cards and database, collecting direct costs of each job, attributing overheads costs to job, applications of job costing
(ii) Batch Costing-
(iii) Contract Costing- Progress Payments, Retention Money, Escalation Clause, Contract Accounts, Accounting for material, Accounting for plant used in a contract, contract profit and balance sheet entries

IV (iv) Process Costing- Double entry book keeping, process loss, abnormal gains and losses, equivalent units, inter-process profit, joint products and by products.
(v) Operating Costing System

V Introduction to Marginal Costing- Marginal costing compared with absorption costing, contribution, breakeven analysis and proft-volume graph
Introduction to Standard Costing- Various types of standards, setting of standards, basic concepts of material and labour standard and variance analysis
Budgets and Budgetary Control-The budget manual, preparation and monitoring procedures, budget variances, flexible budget, preparation of functional budget for operating and non-operating functions, cash budget, master budget, principal budget factors.