COST AND MANAGEMENT ACCOUNTING

Unit I   :          

Introduction : Meaning, Objectives and Advantages of Cost Accounting, Difference between Financial, Cost and Management Accounting and Cost Concepts and Classifications, Role of a Cost Accountant in an Organization.

Unit II  :

Elements of Cost

                  (a)        Materials : Material/Inventory Control-Concept and Techniques, Accounting and Control of Purchases, Storage and Issue of Materials, Method of Pricing of Materials Issues—FIFO, LIFO, Simple Average, Weighted Average.

                        (b)        Labour : Accounting and Control of Labour Cost, Time Keeping and Time Booking, Concept and Treatment of Ideal Time, Over Time, Labour Turnover and Fringe Benefits.

                        (c)        Overhead : Classification, Allocation, Capacity Cost, Treatment of Certain Items in Costing Machine Hour Rate.

Unit III :

Methods of Costing Unit Costing, Job Costing, Contract Costing, Process Costing (Process Losses, Valuation of Work in Progress, Joint and by-Products) Service Costing (Only Transport), Reconciliation of Cost and Financial Accounts.

Unit IV :

Budgeting and Budgetary Control : Concept of Budget and Budgetary Control, Objectives, Merits and Limitations, Types of Budgets.

Unit V :

Absorption Versus Variable Costing : Distinctive Features and Income Determination. Cost-Volume Profit Analysis : Break-even Analysis-Algebraic and Graphic methods. Contribution/Sales Ratio, Key Factor. Margin of Safety. Angle of Incidence. Introduction of Fund Flow and Cash Flow Analysis.

Content 

COST ACCOUNTING
1. Cost Accounting-Meaning, Importance and Evaluation 2. Elements of Cost and their Classification 3. Materials Control and Valuation 4. Labour Cost Control 5. Expenses/Overheads 6. Overheads-Machine-Hour Rate 7. Single or Unit or Output Costing 8. Calculation of Tender Price or Quotation Price 9. Production Account or Manufacturing Account 10. Contract Costing, Job Costing and Batch Costing 11. Process Cost Accounting 12. Reconciliation of Cost and Financial Accounts
MANAGEMENT ACCOUNTING
1. Business Budgeting 2. Budgetary Control 3. Marginal Costing and Absorption Costing 4. Break-Even-Point or Cost Volume Profit Analysis 5. Fund-Flow Statement 6. Cash-Flow Statement (As per Accounting Standard-3)