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
Ch 12,13,Book 1
Factory Overhead Costing and Control:

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.
Ch 2,3,4Book 3
Types of Costing Systems:

Establishment of Cost Accounting system

Principles of double entry system of costing, integrated and interlocking cost accounts..
Job costing and batch costing.
Process Costing Cost of Production Report

Ch 4,5,6, Book 1

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