Advanced Cost Accounting

Paper Code: 
25DATG501B
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

This course will enable the students to analyze complex cost structures, implement advanced costing techniques, and make informed managerial decisions in dynamic business environments.

 

Course Outcomes: 

Course

Learning outcome

(at course level)

Learning and teaching strategies

Assessment Strategies

Course Code

Course title

25DATG 501B

Advanced Cost Accounting (Theory)

 

CO121: Apply the concept of service costing to determine the cost and profit in a service industry.

CO122: Analyze the process and flow of accounts from one process to another, and apply the concepts to ascertain profit or loss.

CO123: Apply equivalent production concepts and understand marginal costing principles.. 

CO124: Analyze decision-making processes using relevant cost analysis and differential cost analysis

CO125: Evaluate production decisions and pricing strategies in special circumstances.

CO126: Contribute effectively in course-specific interaction

Approach in teaching: Interactive Lectures, Discussion,

Tutorials,

Reading

assignments; Solving

Questions.

Learning activities

for the

students:

Self learning

assignments, Effective questions,

Seminar

presentation.

Class test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments, Presentation, Individual and group projects.
 

 

12.00
Unit I: 
Service Costing in Various Industries

·        Meaning of Service Cost

Service costing in case of Transporters, Boiler house, Hospitals, Canteens and Hotels

12.00
Unit II: 
Process Costing and Treatment of Losses

·        Process Costing

·        Meaning of Process costing

·        Procedure Treatment of Normal and Abnormal Loss and Abnormal Gains

·        Accounts for Normal and Abnormal loss and Abnormal Gain

·        Inter process Profit

Joint and By Product Costing

12.00
Unit III: 
Equivalent Production and Marginal Costing

·        Equivalent Production

·        Treatment of W.I.P. on FIFO and Weighted Average Method

·        Marginal Costing

·        Meaning and objectives

·        Break – even Analysis

Cost – Volume – Profit Analysis

12.00
Unit IV: 
Decision Making using Marginal Costing

·        Relevant cost analysis,

·        Differential cost analysis

·        Stock valuation under marginal costing versus absorption costing.

Decisions based on Marginal Costing like Make or Buy, Own or Lease, Shut down or continue

12.00
Unit V: 
Production and Pricing Decisions

·        Production Decisions

·        Dropping or adding a product

·        Determining the most beneficial product mix

·        Production method to be adopted

Pricing decisions in special circumstances like sale below cost, export pricing, dumping and inflation

Essential Readings: 
  • Jain, Khandelwal & Pareek Cost Accounting  Ajmera Book Company , Jaipur
  • Oswal, Maheshwari & Modi  Advance Cost Accounting  Ramesh Book Depot
  • Jawahar Lal  Cost Accounting  Tata Mcgraw Hill , New Delhi

 

References: 
  • Nigam, B.M Lall &  Jain, I.C. Cost Accounting  ,PHI , New Delhi
  • Banerjee, B. Cost Accounting Theory and Practice PHI , New Delhi
  • Agarwal, Jain, Sharma, Shah & Mangal Cost Accounting   Ramesh Book Depot , Jaipur
  •  Arora , M.N, Cost Accounting Principles and Practice  Vikas Publication , New Delhi

 

 

Academic Year: 
2025-2026
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