Cost Accounting

Teacher

DR. RUPSA MAHAPATRA

Category

Core Courses

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Course Name : Cost Accounting

Code(Credit) : CUTM1950 (4+0+2)

Course Objectives

  • The course aims to develop understanding among learners about contemporary cost concept and rational approach towards cost systems and cost ascertainment.
  • The course also aims to provide knowledge about various methods of cost determination under specific situations and to acquire the ability to use information determined through cost accounting for decision making purpose.

Course Outcomes

  • Determine various types of cost of production;
  • Compute Module cost and total cost of production and prepare cost statement;
  • Compute employee cost, employee productivity and employee turnover;
  • Determine cost under job costing, batch costing, process costing, contract costing and apply activity-based costing for cost determination
  • Prepare various budgets and help in decision making.
COS COURSE OUTCOMES MAPPING COS WITH POS (High-3; Medium-2; Low-1)
CO1 Students will be able to determine various types of cost of production;

 

PO1(2), PO2(3)
CO2 Students will be able to Compute Module cost and total cost of production and prepare cost statement;

 

PO2(3), PO3(3)
CO3 Students will be able to Compute employee cost, employee productivity and employee turnover PO3(3), PO2(2)

 

CO4 Students will be able to Determine cost under job costing, batch costing, process costing, contract costing and apply activity-based costing for cost determination

 

PO3(3), PO2(2)
CO5 Students will be able to Prepare various budgets and help in decision making.

 

PO3 (3), PO2 (2)

Course Syllabus

Module I:

Introduction to cost Accounting

Introduction to cost accounting, Cost ascertainment: Element of Cost: Material costs, Employee costs, direct expenses, Overheads, Cost Accounting Standards (CAS 1 to CAs 24), Cost Book Keeping: Reconciliation of costing and Financial profit, Integrated Accounting System

Module II:

 

Methods of Costing

Cost concepts and cost sheet, Job costing, Batch costing, Contract costing, Process costing: Normal and abnormal losses, equivalent production, Inter-process profit, Operating costing (Transport, Hotel and Healthcare), Activity Based Costing (ABC), Application of ABC in manufacturing and service industry.

Module III:

Cost Accounting techniques-I

Accounting for Material: Methods of pricing of materials issues: FIFO, LIFO and average. Treatment of Material loss, Techniques of Material control: Level setting, EOQ, ABC Analysis, VED analysis, Perpetual analysis, Perpetual inventory system and just-in-time.

Accounting for Labour and Overheads: Labour cost, labour turnover, idle time, overtime, methods of wage payments and incentive schemes (Halsey, Rowan and Taylor’s differential piece wage plan)

Module IV:

Cost Accounting techniques: II

Accounting for Overheads: Classification, allocation and apportionment of production overheads, Methods of absorption, under absorption and over absorption of overheads.

Cost accounting for Cloud, digital tools for cost management.

 

Text Books:

  • Jain and Narang, (2013), Cost Accounting, Kalyani Publishers
  • CA Chhawchharia Ravi, CA Doctor Yash (2022), Cost & Management accounting, Taxmann Books
  • Banarjee, B. (2014). Cost Accounting – Theory and Practice. New Delhi: PHI Learning Pvt. Ltd.
  • Kishor, R. M. (2019). Taxman’s Cost Accounting.  New Delhi: Taxmann Publication Pvt. Ltd.
  • Lal, J., & Srivastava, S. (2013). Cost Accounting. New Delhi: McGraw Hill Publishing Co.

 

 

Reference Books:

  • Mowen, M. M., & Hansen, D. R. (2005). Cost Management. Stanford: Thomson.
  • Study Material of CA Course (New) Intermediate Level Paper 3: Cost and Management Accounting

Session Plan

Session 3

Concept of cost unit, cost center, meaning of ‘unit’ from the view point of producer, Establishment of an ideal cost accounting system,

link: 3.pdf

https://youtu.be/quwjZresVdA

cost accounting Paper-8-New

Session Plan

Session 4

Session Plan

Session 5

Ideal Costing System, Cost Reduction, Cost Control, Installation of Costing System

Link: 5.pdf

https://youtu.be/T3sdQT_QVr4

https://youtu.be/0zXbmmQt1Mg

 

cost accounting Paper-8-New

Session Plan

Session 7

Meaning and Definition of Materials, Material cost and Valuation of Materials

Link: 7.pdf

https://youtu.be/QyjGIbIYfto

https://youtu.be/NImslnVCgys

cost accounting Paper-8-New

Session Plan

Session 8

Session 9

Session 10

Session 11

UNIT II

Session 12

Meaning and classification of employee cost, Requisite of a good wage and incentive system

Link: 1.pdf

https://youtu.be/2sHzYfJV3Vk

https://youtu.be/RTNLlfiUfKo

Session 13

Wage and Incentive System, Time and Piece Rate Plans, Profit Sharing, Employee
Productivity and Cost

Link: 2.pdf

https://youtu.be/xlIE3mBhqZA

https://youtu.be/957Ch0BVTSo

Session 14

Labor cost control – techniques, Employee turnover

Link: 3.pdf

https://youtu.be/xlfbGGiYhaw

Session 15

Incentive Plan, Halsey Premium Plan

Link: 4.pdf

https://youtu.be/e17AOCZgbHA

Session 16

Overheads: Meaning, Classification, Function

Link: 5.pdf

https://www.youtube.com/watch?v=2-a4aUkNEr4

Session 17

Session 18

ACCOUNTING AND CONTROL OF ADMINIS-TRATIVE OVERHEADS

Link: 7.pdf

https://youtu.be/ja1k-IXfTFM

Session 19

Treatment of Research and Development cost in Cost Accounting

Link: 8.pdf

https://youtu.be/x0WqBg5zX_s

https://youtu.be/fP65SU-H8UA

UNIT III

Session 20 and 21

Session 29 and 30

Projects:

Preparation of Cost Sheet

Our Main Teachers

Dr. Mahapatra is working as an Assistant Professor (Finance) at Centurion University of Technology & Management. She holds a master’s degree in finance from Ravenshaw university. After that she did her Master in Philosophy degree (M.Phil. in Management) from Ravenshaw University. She has also completed her Ph.D. in Commerce from Ravenshaw University. She has more […]