PRINCIPLES OF COST ACCOUNTING

Introduction

• 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,
• 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

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.

Overhead

·        Meaning, Collection,

·        Classifications, Apportionment,

·        Allocation and Absorption of    overheads;

·        Treatment of interest on capital,

Research and development expenses.

Single Output or Unit Costing

·        Cost sheet,

·        Adjustments in cost sheet,

·        Treatment of Scrap, defectives,

Absorption of overheads and calculation of Tender price

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