CONTENTS:-
COST ACCOUNTING – AN OVERVIEW
- General discussion on Cost Accounting
- Need for Cost Accounting
- Meaning and scope of Cost Accountancy
- Objects of Cost Accounting
- Costing
- Estimating and Pricing
- A comparative study of Cost Accounting and Financial Accounting,
- Advantages of Cost Accounting
- Objections to Cost Accounting
- Installation of Costing System
- Characteristics of an ideal system of Cost Accounting
- Methods of Costing
- Meaning of Cost Centre and Cost Unit.
ELEMENTS AND COMPONENTS OF COST
- Meaning of Cost
- Elements of Cost
- Components of Cost
- Items excluded from Cost Accounts
- Preparation of Cost Sheet
COST CLASSIFICATION
- Meaning and need for classification of costs
- Bases of classification.
MATERIALS-I
- Introduction
- Material Control: Meaning,
- Objects
- principles and advantages
- Scope of Material Control: Purchasing
- Receiving and Inspection
- Storing and Issuing
- Maintenance of Inventory Records
- Inventory Control
MATERIALS-II
- Valuation of materials purchased
- Treatment of discount and cost of containers
- Valuation of materials issued (Methods of Pricing)
- Selection of a proper method of valuation.
LABOUR
- Meaning of labour cost
- Control over labour cost
- Idle Time: Meaning
- causes
- types
- and treatment
- Overtime
- Outworkers
- Labour Turnover
- Methods of Remuneration
DIRECT EXPENSES
- Meaning and characteristics of direct expenses
- Items of direct expenses
- Distinction between chargeable expenses and overhead.
OVERHEAD-I
- Meaning of overhead
- classification of overhead
- Methods and Necessity of segregating fixed and variable overhead costs
- Comments on certain items of overhead
OVERHEAD-II
- Steps in Overhead Accounting
- Classification
- Codification and collection of overhead
- Allocation and apportionment of overhead
- Absorption of factory overhead
- office and administrative overhead
- selling and distribution overhead
- Under-absorption and over-absorption of overhead
SINGLE COSTING-I
- Meaning
- features and objects of Single Costing
- Costing procedure
- Meaning
- features and advantages of Cost Sheet
- Production Account
SINGLE COSTING-II
- Calculation of Estimates
- Tender Price and Quotation Price.
- JOB COSTING AND BATCH COSTING
- Meaning
- features
- procedure and limitations of Job Costing
- Procedure of Batch Costing
CONTRACT COSTING
- Meaning and features of Contract Costing
- Costing procedure
- Cost-plus contracts and Escalation Clause
- Calculation of profit on contracts: Completed and incomplete contracts
PROCESS COSTING-I
- Meaning and features of Process Costing
- Costing procedure
- Process Loss or Wastage
- Treatment of Normal Wastage and Abnormal Wastage
- Abnormal Effectives
- Process Stocks
- Inter-process profits
PROCESS COSTING-II
- Meaning of Joint Products and By-products
- objectives of accounting for joint products and by-products
- Accounting Methods for joint products and by-products
PROCESS COSTING-III
- Equivalent Production: Meaning
- Computation and Evaluation
OPERATING COSTING
- Meaning and features of operating costing
- cedure of costing: Transport costing
- Power-house costing,
- Cinema House costing
- Hotel costing
- Canteen costing,
- Hospital costing
RECONCILIATION OF COST AND FINANCIAL ACCOUNTS
- Meaning and Need for Reconciliation
- Causes of disagreement of cost and financial results
- Method of reconciliation
BUDGETING AND BUDGETARY CONTROL
- Meaning and features of Budget
- Budgeting
- Meaning
- exercise
- objectives
- essentials
- advantages and limitations of Budgetary Control
- Organisation for Budgetary Control
- Classification of Budgets
- Control Ratios
- Zero Base Budgeting
STANDARD COSTING
- Meaning of standard costing and standard cost
- Applicability of standard costing
- Standard Costing Vs. Budgetary Control
- Preliminaries
- Advantages and limitations of standard costing
- Meaning and calculation of variances
- Disposal of variances
MARGINAL COSTING (VARIABLE COSTING-I
- Meaning of Marginal Cost and Marginal Costing
- Features of marginal costing
- Cost-Volume-Profit Analysis
- Absorption Costing Vs. Marginal Costing
- Tools of Marginal Costing -Contribution
- P/V Ratio
- Break-even Point
- Margin of Safety
- Break-even Charts
- Profit-Volume Graph.
MARGINAL COSTING-II
- Application of Marginal Costing Techniques to Managerial Decision-making - Selection of profitable sales mix
- Problem of Limiting Factors
- Make or buy decision
- Diversification of production
- Fixation of selling price
- Export Market Vs. Home Market
- Alternative methods of manufacture
- Operate or Shut-down decision
- Maintaining a desired level of profit
- Profit Planning
DIFFERENTIAL COST ANALYSIS
- Meaning and features of Differential Cost Analysis
- Differential Cost Analysis Vs. Marginal Costing
- Applications of Differential Cost Analysis
COST CONTROL ACCOUNTS AND INTEGRATED ACCOUNTS
- Introduction
- Cost Ledgers
- Control Accounts
- Advantages of Cost Control Accounts
- Meaning of Integrated Accounts
- Integrated Accounting Systems
UNIFORM COSTING AND INTER-FIRM COMPARISON
- Meaning and objects of Uniform Costing
- Requisites for installation
- Applicability
- advantages and disadvantages of Uniform Costing
- Meaning
- objects
- advantages and limitations of Inter-firm comparison
COST AUDIT
- Meaning
- objects and scope of Cost Audit
- Functions
- areas and types of Cost Audit
- Cost Audit Report
- Advantages of Cost Audit
COST CONTROL , COST REDUCTION, VALUE ANALYSIS AND PRODUCTIVITY
- Cost Control-meaning
- steps in cost control
- tools and techniques of cost control
- Cost Reduction - meaning
- advantages
- tools and techniques
- Value Analysis and Productivity - meaning
- measurement and benefits
ACTIVITY BASED COSTING
- Introduction
- Factors prompting the development of ABC System
- Meaning and features of ABC System
- Steps in ABC System
- Objects of Activity Based Costing
- Advantages and limitations of Activity Based Costing.
