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