Cost and Management Accounting-I

Introduction to Cost and Management Accounting
• Cost Accounting: Evolution, Meaning, Objectives and Scope
• Concepts of Costs , Classifications and Elements of Cost
• Cost Centre and Cost Unit
• Methods and Techniques of Costing
• Cost Accounting Standards
• Installation of a Costing System
• Practical Difficulties in Installing a Costing System
• Role of Cost Accountant in Decision Making
• Management Accounting: Evolution, Meaning, Objectives and Scope
• Tools and Techniques of Management Accounting
• Relationship of Cost Accounting, Financial Accounting, Management Accounting and Financial Management
• Conflicts in Profit versus Value Maximisation Principle
• Role of Management Accountant in Decision Making
Material Cost
• Materials Control – Concept and Techniques
• Procurement Procedures and Documentation: Methods of Purchasing; Procedure of Purchases, Stores and Issue of Material; Stock Verification
• Methods of Pricing of Material: FIFO, LIFO, Simple Average, Weighted Average
• Accounting and Control of Material Losses, Wastage, Scrap, Spoilage and Defectives
• Inventory Management: Techniques of fixing of minimum, maximum and reorder levels, Economic Order Quantity, ABC Analysis ; Stock Verification and Perpetual Inventory

Labour Cost
• Meaning and Classification of Labour Costs
• Accounting and Control of Labour Costs
• Time Keeping and Time Booking
• Attendance and Payroll Procedures, Time Recording, Overtime and Idle Time
• Labour turnover and Remedial Measures
• Efficiency Rating Procedures; Remuneration Systems and Incentive Schemes

Direct Expenses and Overheads
• Direct Expenses: Meaning, Nature, Collection, Classification and Treatment of Direct and Indirect Expenses
• Overheads: Meaning, Nature, Collection and Classification
• Functional Analysis: Factory, Administration, Selling, Distribution, Research and Development
Behavioural Analysis: Fixed, Variable, Semi variable and Step
Cost Allocation, Apportionment, Absorption and Control of
Overheads
• Preparation of Cost Sheet

Activity Based Costing (ABC)
• Meaning, Importance, Characteristics
• Elements and Steps involved
• ABC vs. Traditional Costing
• Uses and Limitations
Cost Records
• Cost Ledgers – Integrated Accounts and Non-Integrated Accounts
• Reconciliation of Cost and Financial Accounts
Costing Systems
• Unit and Output Costing
• Job Costing: Job Cost Cards , Collecting Direct Costs, Allocation of Overheads and its Applications
• Batch Costing: Features and Applications

Contract Costing: Features, Distinction between Job and Contract Costing, Progress Payments, Retention Money, Escalation Clause, Contract Accounts, Accounting for Material, Accounting for Plant Used in a Contract, Contract Profit and Accounting Entries