Paper Code: 
CATG 401
Contact Hours: 
Max. Marks: 

Course Outcomes (COs):

  Course Outcomes

Learning and teaching strategies

Assessment Strategies


On completion of this course, the students will be able to:

CO 76: Examine the items of expenditure to identify the different types of cost in a manufacturing unit. 

CO 77: Evaluate the material cost and labour cost  and justify the use of various inventory control methods and wage rate system

CO 78:Analyze the overheads for its proper  apportionment, allocation and absorption 

CO 79: Create cost sheet for effectively ascertaining the cost of products using Unit costing method.

CO 80:Analyse different types of cost related to contracts and be able to compute the Cost of construction contracts

Interactive Lectures, Discussion, Tutorials, Reading assignments & Solving Questions.

Self learning assignments, Effective questions, Seminar presentation, Giving tasks.

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



Unit I: 
  • Meaning and definition of cost accountancy,
  • Nature and Scope of Cost Accounting,
  • Cost Concepts, Distinction between Financial and Cost Accounting.
  • Elements of Cost,
  • Cost Statements: An Introduction


  • Material Cost Management,
  • Need for Efficient Purchasing,
  • Storing of Materials, Methods of Inventory Control,
  • Some Specific Techniques Related to Operating Control System viz. ABC Analysis, VED Analysis, JIT, FSN,
  • Material Cost and its Components,
  • Economic Order Quantity,
  • Inventory Levels i.e. Reorder Level, Maximum Stock Level, Minimum Stock Level, Average Stock Level, Methods of Issue Pricing i.e. LIFO, FIFO, Simple Average, Weighted Average, HIFO, Standard Price And Base Stock Method.



Unit II: 

Unit II: Labour

  • Recruitment, Recording of time and wages,
  • Time Keeping and Time booking,
  • Job Evaluation and Merit rating,
  • Labour Turnover: meaning and nature,
  • Methods of calculating Labour Turnover,
  • Methods of remunerating Labours,
  • Incentive Plans,
  • Allocation of wages,
  • Idle Time: meaning and causes, Treatment of idle time, Over time.



Unit III: 


  • Meaning, Collection,
  • Classifications, Apportionment,
  • Allocation and Absorption of    overheads;
  • Treatment of interest on capital,
  • Research and development expenses.


Unit IV: 
Single Output or Unit Costing:


·       Cost sheet,

·       Adjustments in cost sheet,

·       Treatment of Scrap, defectives,

·       Absorption of overheads and calculation of Tender price,

·       Reconciliation of Cost & Financial Statements: Causes of differences,

·       Procedure of Reconciliation of the results of Cost and Financial Accounts,

 Reconciliation Statement and Memorandum Reconciliation Account                                                                      

Unit V: 
Job & Contract Costing:


  • Job Costing: Meaning, definition and Job Cost Sheet
  • Contract accounting,
  • Methods of determining contract price,
  • Escalation clause,
  • Profit on uncompleted contracts
  • Different types of problems related to contract.


Essential Readings: 
  • Jain, Khandelwal &Pareek, Cost Accounting Ajmera Book Company, Jaipur
  • Agarwal, Jain, Sharma, Shah & Mangal, Cost Accounting   Ramesh Book Depot, Jaipur





  • Arora, M.N.,Cost Accounting Principles and Practice, Vikas Publication, New Delhi
  • Kishore R.M.., Cost Accounting Taxmann’s New Delhi
  • Nigam, B.M Lal,&  Jain, I.C. ,  Cost Accounting    PHI, New Delhi
  • Maheshwari, S.N,  Cost Accounting Mahavir Publication
  • JawaharLal,  Cost Accounting  Tata Mcgraw Hill, New Delhi  
  • Madegowda. J. Cost Accounting  Himalaya Publishing House



·       The Indian Journal of Commerce           

·       FIIB Business Review


Note  The candidate shall be permitted to use battery operated pocket calculator that should not have more than 12 digits, 6 functions and 2 memories and should be noiseless and cordless

Academic Year: