TECHNIQUES OF COST ACCOUNTING

Paper Code:

ABF 301

Credits:

Contact Hours:

45.00

Max. Marks:

1.00

Objective:

Course Outcomes	Learning and teaching strategies	Assessment Strategies
On completion of this course, the students will be able to: CO 109: Analyse the cost, ascertain, reduce and control cost in service industries. CO 110: Evaluate the profits disclosed by financial and cost accounting to facilitate reconciliation. CO 111: Analyse the cost, ascertain, reduce and control cost in processing sectors. CO 112: Investigate how cost volume profit are related and use CVP analysis as a planning and decision making aid CO 113: Analyze and evaluate information for cost ascertainment, planning, control and decision making in real life situations	Interactive Lectures, Discussion, Tutorials, assignments.	Class test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments, Individual projects

Course Outcomes

Learning and teaching strategies

Assessment Strategies

On completion of this course, the students will be able to:

CO 109: Analyse the cost, ascertain, reduce and control cost in service industries.

CO 110: Evaluate the profits disclosed by financial and cost accounting to facilitate reconciliation.

CO 111: Analyse the cost, ascertain, reduce and control cost in processing sectors.

CO 112: Investigate how cost volume profit are related and use CVP analysis as a planning and decision making aid

CO 113: Analyze and evaluate information for cost ascertainment, planning, control and decision making in real life situations

Interactive Lectures, Discussion, Tutorials, assignments.

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

9.00

Unit I:

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: 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, 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: 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: 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:

Jain, Khandelwal & Pareek Cost Accounting Ajmera Book Company , Jaipur

Oswal, Maheshwari & Modi Advance Cost Accounting Ramesh Book Depot

Jawahar Lal Cost Accounting Tata Mcgraw Hill , New Delhi

References:

SUGGESTED READINGS:

Nigam, B.M Lall & Jain, I.C. Cost Accounting ,PHI , New Delhi
Banerjee, B. Cost Accounting Theory and Practice PHI , New Delhi
Agarwal, Jain, Sharma, Shah & Mangal Cost Accounting Ramesh Book Depot , Jaipur
Arora , M.N, Cost Accounting Principles and Practice Vikas Publication , New Delhi