This section is for complete knowledge of cost accounting for any course student.
Contents:
(a) Objectives and scope of cost accounting
(b) Cost centres and cost units
(c) Cost classification for stock valuation, profit measurement, decision making and control
(d) Coding systems
(e) Elements of cost
(f) Cost behaviour pattern, separating the components of semi-variable costs
(g) Installation of a costing system
(h) Relationship of cost accounting, financial accounting, management accounting and financial
management.
2. Cost Ascertainment
(a) Material Cost
(i) Procurement procedures - store procedures and documentation in respect of receipts and
issue of stock, stock verification
(ii) Inventory control - techniques of fixing of minimum, maximum and reorder levels,
economic order quantity, ABC classification; stocktaking and perpetual inventory
(iii) Inventory accounting
(iv) Consumption - identification with products of cost centres, basis for consumption entries in
financial accounts, monitoring consumption.
(b) Employee Cost
(i) Attendance and payroll procedures, overview of statutory requirements, overtime, idle time
and incentives
(ii) Labour turnover
(iii) Utilisation of labour, direct and indirect labour, charging of labour cost, identifying labour
hours with work orders or batches or capital jobs
(iv) Efficiency rating procedures(v) Remuneration systems and incentive schemes.
(c) Direct Expenses
Sub-contracting – control on material movements, identification with the main product or service.
(d) Overheads
(i) Functional analysis – factory, administration, selling, distribution, research and
development
Behavioural analysis – fixed, variable, semi variable and step cost
(ii) Factory overheads – primary distribution and secondary distribution, criteria for choosing
suitable basis for allotment, capacity cost adjustments, fixed absorption rates for absorbing
overheads to products or services
(iii) Administration overheads – method of allocation to cost centres or products
(iv) Selling and distribution overheads – analysis and absorption of the expenses in
products/customers, impact of marketing strategies, cost effectiveness of various methods
of sales promotion.
3. Cost Book-keeping
Cost ledgers – non-integrated accounts, integrated accounts, reconciliation of cost and financial accounts.
4. Costing Systems
(a) Job Costing
Job cost cards and databases, collecting direct costs of each job, attributing overhead costs to jobs,
applications of job costing.
(b) Batch Costing
(c) Contract Costing
Progress payments, retention money, escalation clause, contract accounts, accounting for material,
accounting for plant used in a contract, contract profit and balance sheet entries.
(d) Process Costing
Double entry book keeping, process loss, abnormal gains and losses, equivalent units, inter-process
profit, joint products and by products.
(e) Operating Costing System
5. Introduction to Marginal Costing
Marginal costing compared with absorption costing, contribution, breakeven analysis and profit volume
graph.
6. Introduction to Standard Costing
Various types of standards, setting of standards, basic concepts of material and labour standards and variance
analysis.
7. Budgets and Budgetary Control
The budget manual, preparation and monitoring procedures, budget variances, flexible budget, preparation
of functional budget for operating and non-operating functions, cash budget, master budget, principal budget
factors.
1. Cost Management
(a) Developments in the business environment; just in time; manufacturing resources
planning; (MRP); automated manufacturing; synchronous manufacturing and back flush
systems to reflect the importance of accurate bills of material and routings; world class
manufacturing; total quality management.
(b) Activity based approaches to management and cost analysis
(c) Analysis of common costs in manufacturing and service industry
(d) Techniques for profit improvement, cost reduction, and value analysis
(e) Throughput accounting
(f) Target costing; cost ascertainment and pricing of products and services
(g) Life cycle costing
(h Shut down and divestment.
2. Cost Volume Profit Analysis
(a) Relevant cost
(b) Product sales pricing and mix
(c) Limiting factors
(d) Multiple scarce resource problems
(e) Decisions about alternatives such as make or buy, selection of products, etc.
3. Pricing Decisions
(a) Pricing of a finished product
(b) Theory of price
(c) Pricing policy
(d) Principles of product pricing
(e) New product pricing
(f) Pricing strategies12
(g) Pricing of services
(h) Pareto analysis
4. Budgets and Budgetary Control
The budget manual, Preparation and monitoring procedures, Budget variances, Flexible
budgets, Preparation of functional budget for operating and non-operating functions, Cash
budgets, Capital expenditure budget, Master budget, Principal budget factors.
5. Standard Costing and Variance Analysis
Types of standards and sources of standard cost information; evolution of standards,
continuous -improvement; keeping standards meaningful and relevant; variance analysi s;
disposal of variances.
(a) Investigation and interpretation of variances and their inter relationship
(b) Behavioural considerations.
6. Transfer pricing
(a) Objectives of transfer pricing
(b) Methods of transfer pricing
(c) Conflict between a division and a company
(d) Multi-national transfer pricing.
7. Cost Management in Service Sector
8. Uniform Costing and Inter firm comparison
9. Profitability analysis - Product wise / segment wise / customer wise
10. Financial Decision Modeling
(a) Linear Programming
(b) Network analysis - PERT/CPM, resource allocation and resource leveling
(c) Transportation problems
(d) Assignment problems
(e) Simulation
(f) Learning Curve Theory
(g) Time series forecasting*
(h) Sampling and test of hypothesis*
1. Cost Management
(a) Developments in the business environment; just in time; manufacturing resources
planning; (MRP); automated manufacturing; synchronous manufacturing and back flush
systems to reflect the importance of accurate bills of material and routings; world class
manufacturing; total quality management.
(b) Activity based approaches to management and cost analysis
(c) Analysis of common costs in manufacturing and service industry
(d) Techniques for profit improvement, cost reduction, and value analysis
(e) Throughput accounting
(f) Target costing; cost ascertainment and pricing of products and services
(g) Life cycle costing
(h Shut down and divestment.
2. Cost Volume Profit Analysis
(a) Relevant cost
(b) Product sales pricing and mix
(c) Limiting factors
(d) Multiple scarce resource problems
(e) Decisions about alternatives such as make or buy, selection of products, etc.
3. Pricing Decisions
(a) Pricing of a finished product
(b) Theory of price
(c) Pricing policy
(d) Principles of product pricing
(e) New product pricing
(f) Pricing strategies12
(g) Pricing of services
(h) Pareto analysis
4. Budgets and Budgetary Control
The budget manual, Preparation and monitoring procedures, Budget variances, Flexible
budgets, Preparation of functional budget for operating and non-operating functions, Cash
budgets, Capital expenditure budget, Master budget, Principal budget factors.
5. Standard Costing and Variance Analysis
Types of standards and sources of standard cost information; evolution of standards,
continuous -improvement; keeping standards meaningful and relevant; variance analysi s;
disposal of variances.
(a) Investigation and interpretation of variances and their inter relationship
(b) Behavioural considerations.
6. Transfer pricing
(a) Objectives of transfer pricing
(b) Methods of transfer pricing
(c) Conflict between a division and a company
(d) Multi-national transfer pricing.
7. Cost Management in Service Sector
8. Uniform Costing and Inter firm comparison
9. Profitability analysis - Product wise / segment wise / customer wise
10. Financial Decision Modeling
(a) Linear Programming
(b) Network analysis - PERT/CPM, resource allocation and resource leveling
(c) Transportation problems
(d) Assignment problems
(e) Simulation
(f) Learning Curve Theory
(g) Time series forecasting*
(h) Sampling and test of hypothesis*
No comments:
Post a Comment