Techniques of Cost Accounting

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

The objective of this course to understand costing procedure involved in cost ascertainment system.
CO 103: Analyse the cost ascertain, reduce and control cost in service industries and processing sectors.
CO 104: Evaluate the profits disclosed by financial and cost accounting to facilitate reconciliation.
CO 105: Investigate how cost-volume-profit are related and use CVP analysis as a planning and decision making aid
CO 106: Analyze and evaluate information for cost ascertainment, planning, control and decision making in real life situations

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 ofProcess 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: 

1. Advance Cost Accounting: Oswal, Maheshwari, Modi (Ramesh Book Depot)
2. Cost Accounting: Jawahar Lal (Tata Mcgraw Hill), New Delhi
3. Cost Accounting Principles and Practice: M.N. Arora (Vikas Publication), New Delhi

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: 
2021-2022
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