Contents

COST ACCOUNTING
Study Note 1 : Introduction to Cost Accounting
1.1 Definition, Scope, Objectives and Significance of Cost Accounting 1
1.2 Cost Object, Cost Centers and Cost Unit – Elements of Cost 7
1.3 Classification of Cost 13

Study Note 2 : Cost Ascertainment - Elements of Cost

2.1 Material Cost (CAS-6) 23
2.2 Employee Costs (CAS-7) 71
2.3 Direct Expenses (CAS-10) 116
2.4 Overheads (CAS-3) 121

Study Note 3 : Cost Accounting Standards

3.1 Preface to Cost Accounting Standards (CASs) 171
3.2 Objective and Functions of Cost Accounting Standards Board 172
3.3 CAS 1-24 as issued by The Institute of Cost Accountants of India 174

Study Note 4 : Cost Book Keeping

4.1 Cost Accounting Records, Ledgers and Cost Statements 185
4.2 Items excluded from Cost and Normal and Abnormal Items/Cost 200
4.3 Integral Accounts 201
4.4 Reconciliation of Cost Accounting Records with Financial Accounts 211
4.5 Infrastructure, Educational, Healthcare and Port Services 224

Study Note 5 : Methods of Costing

5.1 Job Costing 233
5.2 Batch Costing 245
5.3 Contract Costing 249
5.4 Process Costing – Joint & By-Products 264
5.5 Operating Costing or Service Costing – Transport, Hotel and Hospital 296

Study Note 6 : Cost Accounting Techniques

6.1 Marginal Costing 307
6.2 Standard Costing & Variance Analysis 341
6.3 Budget and Budgetary Control 366