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Fundamentals of Cost Accounting (Generic Elective)
This course will enable the students to develop an understanding of the cost accounting concepts and procedures.
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Course Code |
Course title |
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25GATG301 |
Fundamentals of Cost Accounting (Theory) |
CO1: Demonstrate an understanding of the fundamentals of cost accountancy, including cost concepts and classification. CO2: Evaluate the material cost and labour cost and justify the use of various inventory control methods and wage rate system CO3: Analyze the overheads for its proper apportionment, allocation and absorption CO4: Apply the cost management techniques for planning and controlling performance in order to set, monitor and control cost. CO5: Develop a thorough understanding of the basic framework of cost audit, cost auditor and reports. CO6:Contribute effectively in course-specific interaction |
Approach in teaching: Interactive Lectures, Discussion, Tutorials, Problem solving sessions, Presentations Learning activities for the students: Self-learning assignments, Case Study analysis, Presentations, Group discussions
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Continuous Assessment Test, Semester End Examinations, Quiz, Solving numerical problems, Assignments, Class Presentations, Individual and group projects. |
• Meaning and definition of cost accountancy,
• Nature and Scope of Cost Accounting,
• Cost Concepts, Distinction between Financial and Cost Accounting.
• Essentials of sound system of cost accounting
• Cost Classification
• Elements of Cost
• Cost Statements: An Introduction (basic)
• Material Cost Management,
• Need for Efficient Purchasing,
• Storing of Materials, Methods of Inventory Control,
• Material Cost and its Components,
• Economic Order Quantity,
• Inventory Levels i.e. Reorder Level, Maximum Stock Level, Minimum Stock Level, Average Stock Level (Short examples)
Labour Cost-
• Recruitment, Recording of time and wages,
• Labour Turnover: meaning and nature,
• Methods of calculating Labour Turnover,
• Time wage,
• Piece wage- incentives wage system plans (Theory only)
• Examples on Time rate as per Halsey & Rowan Method only
• Idle Time: meaning and causes, Over time.
• Classification of overhead
• Apportionment of overhead
• Apportionment of overhead of service department to production department under repeated distribution method
• Absorption of overhead (Theory only)
• Examples based on Machine hour rate.
• Just-in-Time (JIT)
• Cost Control/ Waste Control, Cost Reduction
• Target Costing
• Pareto Analysis
• Life Cycle Costing
• Nature and Scope of Cost Audit
• Cost Accounting Records and Cost Audit under Companies Act, 2013
• Purpose, Scope and Advantages of Cost Audit
• Cost Audit Report
• Cost Auditor – Appointment, Rights and Responsibilities
• Cost Accounting: Jain, Khandelwal & Pareek, (Ajmera Book Company, Jaipur)
• Cost Accounting: Agarwal, Jain, Sharma, Shah & Mangal, (Ramesh Book Depot, Jaipur)
• Cost Accounting Principles and Practice: M.N. Arora, (Vikas Publication, New Delhi)
• Cost Accounting: Ravi M Kishore (Taxmann’s-New Delhi)
• Cost Accounting: B.M Lall Nigam, I.C. Jain, PHI, New Delhi
• Cost Accounting Theory and Practice: (Bhabatosh Banerjee, PHI, New Delhi)
• Cost Accounting-S.N. Maheshwari, (Mahavir Publication)
• Cost Accounting: Jawahar Lal, (Tata Mcgraw Hill, New Delhi)
• Cost Accounting: J. Madegowda (Himalaya Publishing House)
Suggested Readings:
• Cost Accounting: B.M Lall Nigam, I.C. Jain (PHI), New Delhi
• Cost Accounting Theory and Practice: Bhabatosh Banerjee (PHI), New Delhi
• Cost Accounting: Agarwal, Jain, Sharma, Shah and Mangal (Ramesh Book Depot), Jaipur
• Cost Accounting Principles and Practice: M.N. Arora (Vikas Publication), New Delhi
E-Content:
• https://devlibrary.in/managerial-and-cost-accounting/
• https://www.icsi.edu/media/website/CostAndManagementAccounting.pdf
Reference Journal:
• The Indian Journal of Commerce
• FIIB Business Review
• Vikalpa: Journal for Decision Makers
