WLC COLLEGE INDIA

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ACCOUNTING FUNDAMENTALS

Course : Advanced Certificate Level - II

Module Hours : 39 hrs

Session-1 : Cost Accounting, cost classification, definition preparation of cost

sheet.

Learning
Outcome : To make the student understand basic concepts in cost accounting

Session-2 : Material cost, EOQ, Fixation of Levels, pricing of issues.

Learning
Outcome : To make the student understand computation of material cost,
inventory levels.

Session-3 : Inventory control, stock taking (perpetual system) stock holding

costs.

Learning
Outcome : To understand methods of remuneration and incentive scheme.

Session-4 : Labour costs, remuneration policy, time recording and time

booking, idle time remuneration methods.

Learning
Outcome : To understand methods of remuneration and incentive scheme.

Session-5 : Overheads: Allocation and apportionment, primary and secondary

methods distribution

Learning
Outcome : To understand how to absorb the overheads on to the products.

Session-6 : Absorption of overheads – different methods. Over / under

absorption of overheads – treatment thereof.
Learning
Outcome : To understand how to absorb the overheads on to the products and
control thereof.

Session-7 : Marginal cost and use of marginal costing technique.

Learning
Outcome : To understand the importance of marginal costing technique.

Session-8 : Comparison of marginal costing and absorption costing differences

– impact in profits.

Learning
Outcome : To understand the importance of marginal costing technique.

Session-9 : Costing books of accounts, integrated accounting, job, batch and

contract costing.

Learning
Outcome : Students to understand the importance of integrated accounts

Session-10 : Process costing, accounting for normal loss, snap.

Learning
Outcome : Students to understand the ascertain the profit in contract account.

Session-11 : Process costing – accounting to abnormal loss / gain.

Learning
Outcome : To understand as to how to account for abnormal loss and gain in
process accounts.

Session-12 : Service costing – working out the cost in transport, hotel, hospitals etc.,

Learning
Outcome : To understand as to how to compute cost of services in a service
industry.

Session-13 Marginal costing, relevant area for decision making.

Learning
Outcome : Students to understand the concept of marginal costing technique
in short term decision areas.
Session-14 Breakeven analysis, short term decisions.

Learning
Outcome : Students to understand the concept of marginal costing technique
in short term decision areas.

Session-15 & 16 : Group Discussions.

Session-17 : Budgets – scope and advantages, techniques, types, limitations.

Learning
Outcome : Students to know the importance of budgets

Session-18 : Flexible budget, budgetary control analysis.

Learning
Outcome : Students to know the importance of budgets and the steps involved
in budgetary control system.

Session-19 : Standard costing - Material cost variances.

Learning
Outcome : Students to understand and compute the variances.

Session-20 : Labour cost variances.

Learning
Outcome : Students to understand and compute the variances.

Session-21 : Overhead variances – variable overheads.

Learning
Outcome : Students to understand and interpret the various variances in overheads.

Session-22 : Fixed overheads variances.

Learning
Outcome : Students to understand and interpret the various variances in
overheads.

Session-23 : Sales variances - margin Variance

Learning
Outcome : To understand the variance analysis and interpret them affecting
the profitability.
Session-24 : Value variances

Learning
Outcome : To understand the variance analysis and interpret them affecting
the profitability.

Session 25 & 26 : Case study and discussions.

Introduction to the Module:

Providing useful and adequate knowledge in three components of accounting information viz.
Financial Accounting, Cost Accounting and Management Accounting for making business
decisions. If one understands how accounting information is prepared and presented,
management can take appropriate decisions based on accounting information. Since the
accounting information is used in business decisions, accountants have an important role in all
aspects of management through supplying useful information to managers. Due to this, there
is a need to develop utmost co-ordination between the managers and accountants and
increase the understanding and familiarity between them about their functions and
responsibilities. Managers of Indian companies need to make business decisions with sound
knowledge and understanding of use of accounting information for the effective functioning of
their enterprises. With this perspective, the module has been prescribed.

Activities proposed:

(i) An industrial concern has a costing system based on historical costs. Draft a report
making out a case for introduction of Standard Costing System.

(ii) Discuss the circumstances under which selling prices below marginal cost may be
justified?

After going through this module and participating in the activity cited above, students will be
able to get a good idea of how to present the cost sheet, computing profits and also concept of
P/V ratio, to facilitate taking decisions by the management.

Text Book

Book Name Author Publishers

Cost Accounting Dr.Jawahar Lal Tata McGraw-Hill
Publishing Company Ltd.

Accounting for Management Dr.Jawahar Lal Himilaya Publishing House

Management Accounting M.Y.Khan, Tata McGraw-Hill

 P.K.jain Publishing Company Ltd.

Cost Accounting B.S.Raman United Publishers

Cost Accounting S.P.Jain Kalyani Publishers

K.L.Narang