Cost Accounting

Course Contents:
Topic Source

Concept and Scope of Cost Accounting: Ch 2, Book 1

Definition and cocept of cost. Cost object, Cost elements. Definition, concept and scope of cost Ch 1, Book 4
accounting. Objectives of cost accounting. Cost Accounting Vs Financial Accounting. Use of cost
data. Chart of accounts and coding for costing

Cost Classification and Flow: Ch 1, Book 2

Product and period cost, direct and indirect cost, Differential cost and revenue, Opportunity and Ch 2, Book 1
Sunk cost, fixed and variable cost, mixed cost, statement of cost of goods manufactured and sold
statement.

Material Costing, Planning and Control: Ch 7,8, Book 1

• Procedure for material procurement and use

• Material costing methods
• Costing Procedure for spoiled, scrap and defective work
• Planning materials requirement (EOQ , Inventory levels and reserve stocks)
• Materials control (Principles and Methods)
Labour Costing, Control and Accounting: Ch 9,10, Book 1

• Productivity and efficieny of labour.

• Remuneration Methods (Straight piece rate, differential piece rate, Incentive wage plans)
• Learning curve theory
• Organisation for labour cost accounting and control
• Accounting for labor related costs (Overtime, Bonus payments, vacation pay, guaranteed
annual wage plans , apprenticeship and training programs, pension
• Labor related deductions
Factory Overhead Costing and Control: Ch 12,13,Book 1

• Nature of factory overhead.

• Procedure of factory overheads including allocation, apportionment, reapportinment and
absorption.
• Repeated distribution and algebric method for reciprocal, service department costs.
• Calculation and use of Predetermined factory overhead rate.
• Applied and actual FOH, under /overapplied FOH.
Types of Costing Systems: Ch 2,3,4Book 3

• Establishment of Cost Accounting system Ch 4,5,6, Book 1

• Principles of double entry system of costing, integrated and interlocking cost accounts..
• Job costing and batch costing.
• Process Costing – Cost of Production Report
• Process Costing – Average and FIFO method
• Joint product and by-product.
• Service Costing

Recommended Text

1. Matz, Hammer Usry (1985) 9th edition Cost Accounting South-western Publishing Co
2. Garrison H. Ray, Noreen W. Eric (2004) 10th edition Managerial Accounting, Irwin
publishers
Further Readings

3. Hilton W. Ronald (2005) Managerial Accounting6th edition McGraw-Hill Irwin

4. Jain S.P, Narang .K.L 2000 Advanced Cost Accounting, Kalyani Publishers