Cost Accounting

Paper Code: 
24CATG401
Credits: 
04
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

This course will enable the students to develop an understanding of cost accounting concepts and procedures. 

 

 

Course Outcomes: 

Course Outcomes (COs):

Course

Learning Outcome

(at course level)

Learning and teaching strategies

Assessment Strategies

Course Code

Course title

24CATG401

 

Cost Accounting

(Theory)

CO91: Examine and compute the items of expenditure to identify the different types of cost in a manufacturing unit specifically material cost.

CO92: Evaluate the labour cost and justify the use of various wage rate system

CO93: Analyze the overheads for its proper apportionment, allocation and absorption

CO94: Create cost sheet for effectively ascertaining the cost of products using Unit costing method.

CO95: Analyse different types of cost related to contracts and be able to compute the Cost of construction contracts

CO96: Contribute effectively in course-specific interaction

Approach

in

teaching:

Interactive

Lectures,

Discussion,

Tutorials,

Problem solving sessions, Presentations

Learning

activities

for the

students:

Self-learning

assignments, Case Study analysis, Presentations, Group discussions

  

Continuous Assessment Test, Semester End Examinations, Quiz, Solving numerical problems, Assignments, Class Presentations, Individual and group projects.

 

12.00
Unit I: 
Introduction and Material Costing

●       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:

●       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.

 

12.00
Unit II: 
Labour Costing

●       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.

12.00
Unit III: 
Overhead Costing

●       Meaning, Collection,

●       Classifications, Apportionment,

●       Allocation and Absorption of    overheads;

●       Treatment of interest on capital,

●       Research and development expenses.

12.00
Unit IV: 
Single Output or Unit Costing; Reconciliation of Cost & Financial Statements

●       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  

12.00
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: 

●       Cost Accounting: Jain, Khandelwal & Pareek, (Ajmera Book Company, Jaipur)

●       Cost Accounting: Agarwal, Jain, Sharma, Shah & Mangal, (Ramesh Book Depot, Jaipur )

●       Cost Accounting Principles and Practice: M.N. Arora, (Vikas Publication, New Delhi)

●       Cost Accounting: Ravi M Kishore (Taxmann’s-New Delhi)

●       Cost Accounting: B.M Lall Nigam, I.C. Jain, PHI, New Delhi

●       Cost Accounting Theory and Practice: (Bhabatosh Banerjee, PHI, New Delhi)

●       Cost Accounting-S.N. Maheshwari, (Mahavir Publication)

●       Cost Accounting: Jawahar Lal, (Tata Mcgraw Hill, New Delhi) 

●       Cost Accounting: J. Madegowda (Himalaya Publishing House)

 

 

References: 

Suggested Readings:

●       Cost Accounting: B.M Lall Nigam, I.C. Jain (PHI), New Delhi

●       Cost Accounting Theory and Practice: Bhabatosh Banerjee (PHI), New Delhi

●       Cost Accounting: Agarwal, Jain, Sharma, Shah and Mangal (Ramesh Book Depot), Jaipur

●       Cost Accounting Principles and Practice: M.N. Arora (Vikas Publication), New Delhi

E-Content:

●       https://devlibrary.in/managerial-and-cost-accounting/

●       https://www.icsi.edu/media/website/CostAndManagementAccounting.pdf

 

Reference Journals:

●        The Indian Journal of Commerce         

●       FIIB Business Review

●       Vikalpa: Journal for Decision Makers

 

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: 
2024-2025
  • Printer-friendly version
  • PDF version