Techniques of Cost Accounting

Paper Code: 
ABF 301
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

This course will enable the students to- The objective of this course is to provide comprehensive presentation of the service costing and process costing with decision making analysis

Course Outcomes (COs):

Course

Learning outcome

 (at course level)

Learning and teaching strategies

Assessment Strategies

Paper Code

Paper Title

ABF 301

Techniques of Cost Accounting

 
  1. To apply service costing in determination of cost in service industries.
  2. To reconcile the difference in profit revealed by  cost and financial accounting 
  3. To apply process costing for determining the cost of product passing through different processes
  4. To understand the concept and application of equivalent production

 

 

 

 

Approach in teaching:

Interactive Lectures, Discussion, Tutorials, assignments.

Learning activities for the students:

Self learning assignments, Effective questions,  Giving tasks,

 

Class test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments,  Individual projects

 

9.00
Unit I: 
Service Costing (Operating Costing)

Service Costing (Operating Costing): Meaning of Service Cost, Service costing in case of Transporters, Boiler house, Hospitals, Canteens and Hotels
Reconciliation of Cost & Financial Statements: Causes of differences, Procedure of Reconciliation of the results of Cost and Financial Accounts, Reconciliation Statement and Memorandum Reconciliation Account

9.00
Unit II: 
Process Costing

Process Costing: Meaning of Process costing, Procedure Treatment of Normal and Abnormal Loss and Abnormal Gains, Accounts for Normal and Abnormal loss and Abnormal Gain, Inter process Profit
Joint and By Product Costing

9.00
Unit III: 
Equivalent Production

Equivalent Production, Treatment of W.I.P. on FIFO and Weighted Average Method
Marginal Costing: Meaning and objectives, Break – even Analysis, Cost – Volume – Profit Analysis

9.00
Unit IV: 
Decision Making

Decision Making: Relevant cost analysis, Differential cost analysis, Stock valuation under marginal costing versus absorption costing. Decisions based on Marginal Costing like Make or Buy, Own or Lease, Shut down or Continue

9.00
Unit V: 
Production Decisions

Production Decisions: Dropping or adding a product, Determining the most beneficial product mix, Production method to be adopted, Pricing decisions in special circumstances like sale below cost, export pricing, dumping and inflation

Essential Readings: 
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: Agarwal, Jain, Sharma, Shah and Mangal (Ramesh Book Depot), Jaipur
4. Cost Accounting: Jain, Khandelwal & Pareek (Ajmera Book Company), Jaipur

Academic Year: 
2020-2021
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