UBMSFSII.5 : INTRODUCTION TO COST ACCOUNTING
[50 lectures: 3 Credit]
Objectives of the Course:
- To enable the students to understand the principles and procedure of cost accounting and to apply them to different practical situations.
- The primary objective of the course is to familiarize the students with the basic cost concepts, allocation and control of various costs and methods of costing.
|Units||Name of the topic||No. of|
|Unit I||Introduction to Cost Accounting:||10|
|a) Meaning, Nature and scope|
|b) Objective of Cost Accounting|
|c) Financial Accounting v/s Cost Accounting|
|d) Advantages and disadvantages of Cost Accounting|
|e) Cost classification (concept only)|
|f) Types of costing- Job, process, batch and contract|
|g) Installation of Cost Accounting System.|
|Unit II||Elements of Cost:||20|
|a) Material- Introduction, motives of holding stock, stock|
|valuation (FIFO & weighted average method), maintenance of|
|b) Labour- Introduction, labour remuneration|
|(Time rate & Price rate), labour turnover|
|c) Overheads- Introduction, classification of overheads,|
|Distribution/Appointment of overheads|
|d) Introduction to concept of absorption costing-||Under|
|absorption/over absorption of overheads (concept only)|
|e) Determination of total cost/ composition of selling price/|
|cost sheets /translation, valuation of closing stock|
|/Estimated/Tender/Offer (Basic numericals)|
|Unit III||Reconciliation between Cost and Financial records:||10|
|Meaning and Definition, Need for Reconciliation, causes of|
|disagreement, procedure and preparation of Statement of|
|Unit IV||Elementary principles and techniques of Marginal Costing||10|
|1)Elementary principles of Marginal Costing- Meaning, features of|
|Marginal Costing, Advantages of Marginal Costing, Limitations of|
Marginal Costing and Concept of Profit.
- Techniques of Marginal Costing – Contribution, Profit-volume Ratio, Breakeven point, Margin of Safety, Cost-volume-profit Analysis.
- Basic problems on managerial decision making (Buy or Sell)
- Budgetary Control: Basic: Budget, Purchase and Sell Budget.
- Management Accounting I.M. Pandey Vikas Publishing
- Cost Accounting C.S. Rayudu Tata McGraw Hill and Co. Ltd, Mumbai
- Cost Accounting Theory and Practice M.N. Aurora S. Chand & Co. (P) Ltd., New Delhi
- Cost Accounting A Managerial Emphasis Horngren, Charles, Foster and Datar, Prentice Hall of India
- Advanced Problems and Solutions in Cost Accounting, Maheshwari S.N., S.Chand and Co.
(P) Ltd., New Delhi
- Cost Accounting Jain S.P., Narange K.L. Kalyani, New Delhi
- Cost Accounting and Financial Management Ravi M. Kishore Taxman’s
- Principles of Cost Accounting Vanderbeck Thomson learning
- Cost Accounting –Tulsian P.C. –Tata McGraw Hills.