Cost accounting – Definition – Meaning – Scope – Objectives, Advantages and Limitations – Difference between Cost accounting and financial accounting – Elements of Cost – Preparation of Cost Sheet and Tender.
Material Control: Purchasing Procedure - Need for material control – Essential features of material control – Materials control techniques – Stock levels – Economic Order Quantity - ABC analysis. Stores control: Stores ledger Vs Bin Card - Pricing Materials Issues: FIFO, LIFO, Simple and Weighted Average Method – Perpetual Inventory System Vs Continuous Stock Taking.
Labour Control: Productive and Idle labour – Methods of wage payment: Time rate and Piece System – Incentives Schemes: Halsey, Rowan, Taylor and Merrick – Calculation of wages - Labour Turnover: causes – Methods of labour turnover.
Overhead: Meaning – Classification: Elements, Functions, Behaviour – Sources of overhead - Allocation, Apportionment – Primary distribution method – Secondary distribution method - Absorption of overheads – Methods – Under Absorption and Over Absorption.
Process Costing – Features – Process losses, Wastage, Scrap, Normal Loss – Abnormal Loss, abnormal gain (Excluding inter process profits and equivalent by product). Job Costing –contract costing- Operating costing: Transport Reconciliation of cost and financial accounts.
Reference Book:
1) S.P. Jain and KL. Narang , “Cost Accounting”, Kalyani Publishers, New Delhi.Edn.2005 2) R.S.N. Pillai and V. Bagavathi , “Cost Accounting”,S. Chand and Company Ltd., New Delhi.Edn.2004 3) Dr.R.Ramachandran and Dr.R. Srinivasan “Cost Accounting” Sriram Publications,2006.. 4) B.S. Raman “Cost Accounting” United publishers,2012.
Text Book:
1) A.Murthy and Dr.S.Gurusamy, “Cost Accounting”,Vijay Nicole Imprints Private Limited, Chennai. 2006.