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Advanced Cost Accounting

The document outlines the syllabus for Advanced Cost Accounting, covering five main units: Contract Costing, Process Costing, Operating Costing, Marginal Costing, and Standard Costing. Each unit includes definitions, features, calculations, and preparation of various cost statements relevant to the respective costing methods. The document emphasizes the application of these costing techniques in specific industries such as construction and transportation.

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409 views5 pages

Advanced Cost Accounting

The document outlines the syllabus for Advanced Cost Accounting, covering five main units: Contract Costing, Process Costing, Operating Costing, Marginal Costing, and Standard Costing. Each unit includes definitions, features, calculations, and preparation of various cost statements relevant to the respective costing methods. The document emphasizes the application of these costing techniques in specific industries such as construction and transportation.

Uploaded by

profiretamizha
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

ADVANCED COST ACCOUNTING

E.Rushendiran
ADVANCED COST ACCOUNTING

SYLLABUS

UNIT – 1 CONTRACT COSTING:


Definition – Features of contract costing – Calculation of profit on contracts –
Cost plus contract – contract costing VS Job costing – Preparation of contract A/C.

UNIT – 2 PROCESS COSTING :


Features of process costing – Process Loss – Normal & Abnormal Loss –
Concept of Equivalent Production – Process accounts – Process Lossess and gain.

UNIT – 3 OPERATING COSTING:


Operating costing – Meaning – Preparation of operating cost sheet – Transport
costing – Power supply costing – Hospital costing – Simple problems.

UNIT – 4 MERGINAL COSTING:


Meaning – Features – Absorption costing – Marginal costing VS Absorption
costing – Contribution – PV Ratio – Break Even point – Key factor – Margin of
Safety – Preparation of marginal cost statement.

UNIT – 5 STANDARD COSTING:


Definition – Objectives – Advantages – standard cost and Estimated cost –
Installation standard costing – Varience analysis – Material, Labour, Overhead and
sales variance – Calculation of variances.

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ADVANCED COST ACCOUNTING

UNIT -1

CONTRACT COSTING

Meaning:
Contract costing is one of the variation of specific order costing. It is employed to ascertain cost and
profit of specific contracts undertaken.

 A ‘Contract’ is the cost unit it is similar to job costing but they differ basically in the aspects of
size and duration.
 The method is widely used in construction works. Ex. Construction of buildings, roads, ships,
plants, dams etc.

Definition:
As per the CIMA Technology (Charted Institute of management Accounts of London) (Eartier known
as ICMA) Contract costing is “A form of specific order costing in which costs are attributed to individual
contracts”.

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ADVANCED COST ACCOUNTING

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ADVANCED COST ACCOUNTING

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