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Concept and Nature of Cost Accounting
Concept of cost and costing, Importance and features of costing, Cost classification, Concept of cost unit, cost center, meaning of ‘unit’ from the view point of producer, Establishment of an ideal cost accounting system, Cost Reduction, Cost Control, Installation of Costing System, Application of IT in Cost Accounting.
Preparation of Cost Sheet for manufacturing and service sector.
Direct and indirect material, Valuation of materials, Principles of valuation of material as per AS- 2/ Ind AS- 2; CAS- VI, Material control, purchases, Objectives and functions of purchase department, Inventory control: Meaning and techniques including latest techniques like Just in Time (JIT) Inventory Management, Kanban, Kaizen, Determination of Economic Order Quantity (EOQ). Inventories Valuation: Meaning. Significance of inventory valuation. Methods of computing inventory: FIFO, LIFO and Weighted Average.
Treatment of waste, scrap, spoilage, defective and obsolesce.
Employee Cost and Overheads
Meaning and classification of employee cost, Requisite of a good wage and incentive system, Time and piece rate plans, Profit sharing, Employee productivity and cost. Labor cost control – techniques, Employee turnover, Remuneration and Incentive schemes (Rowan & Halsey Plan only).
Overheads: Definition and classification, Production overheads – allocation and apportionment of cost, Meaning and Methods of cost absorption, Treatment of over- absorption& under-absorption of overheads, Administration and selling & distribution overheads – methods of ascertainment, Treatment of Research & Development cost in Cost Accounting.
|Unit 3:||Methods of Costing: Job Costing, Batch Costing and Process Costing
Meaning of Job Cost, its application and accounting, Preparation of Job cost sheet. Meaning
of Batch Cost and its application in today’s industry.
Meaning and application of process costing, Methods of determination of cost in process costing, Normal and abnormal loss and gain, Inter process costing and profit ascertainment. Choice between process and job costing.
Methods of Costing: Contract Costing, Service Costing
Meaning, features and types of contract, Methods of cost determination in contract costing, Escalation clause and cost-plus contract.
Meaning and scope of service costing, Factors in ascertaining service cost, Ascertainment of service cost of following services: Transport, Hospital, Canteen, Hotel.
Activity Based Costing (ABC)
Concept, significance and salient features; Stages and flow of costs in ABC; Basic components of ABC - resource drivers and cost drivers; Application of ABC in a manufacturing organisation and service industry.
Introduction to Cost Accounting, What is Cost Accounting? Objectives of Cost Accounting, Scope of Cost Accounting, Advantages of cost accounting
Difference between cost accounting and financial accounting
Cost concepts, Cost classifications, Elements of cost, Direct & Indirect Material, Direct & Indirect Labour, Direct & Indirect Expenses
Preparation of cost sheet, Installation of a costing system
Role of a cost accountant in an organization
Meaning and classification of materials
Meaning of Inventory or material control, Objectives of inventory control
Accounting and control of purchases, storage and issue of materials
Methods of pricing of materials issues — FIFO, LIFO,
Methods of pricing of materials issues- Simple Average, Weighted Average
Replacement, Standard Cost.
Treatment of Material Losses
Introduction and concept of Accounting and Control of Labour Cost
Time Keeping and Time Booking, Idle Time
overtime, labour turnover and fringe benefits.
Concepts of Methods of wage payment and the Incentive schemes
Halsey Plan, Rowan Plan, Taylor’s Differential Piece Wage
Case Study Analysis & Discussion
Classification of Overheads
allocation, apportionment of Overheads
absorption of overheads; Under- and overabsorption
Capacity Levels and Costs
Treatments of certain items in costing like interest on capital, packing expenses,
Treatments of certain items in costing like bad debts, research and development expenses
Activity-based cost allocation
Introduction to methods of costing
Introduction and concept of Unit costing and job costing
Introduction and concept of contract costing
Process costing (process losses, valuation of work in progress, joint and by-products)
Introduction and concept of Service costing
Book Keeping in Cost Accounting Integral and non-integral systems
Cont. Book Keeping in Cost Accounting Integral and non-integral systems
Reconciliation of cost and financial accounts
Cont. Reconciliation of cost and financial accounts
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 […]