Introduction to cost accounting – Meaning and definition – Difference between financial and cost accounting – Nature and significance of cost accounting – Methods of costing – Elements of costing – Cost concepts fixed cost and variable costs – Preparation of cost sheet.
Material: classification and coding of materials fixation of maximum, minimum and reorder levels – Economic order quantity – Purchase procedure – Storage of materials, issue of materials pricing of material issues and returns – Inventory control physical verification – Periodical and perpetual Inventory. LABOUR: Classification of labour – Time keeping – Preparation of pay roll – Wage payment and incentive system – idle time, overtime.
Overhead: Meaning and classification of overheads – Classification according to function – Variability and elements – Steps in overhead accounting – Absorption of overhead cost, difference between cost allocation and apportionment and reapportionment – Predetermined overhead recovery rates.
Process Costing – features - Comparison between Joint Costing and Process Costing – Process losses – Inter Process Profit - Equivalent Production – Joint products and By-products.
Reconciliation of Cost and Financial Accounts – Cost Ledger - Integrated Accounts – Cost Audit under Companies Act – Benefits of Cost Audit – Programmes and Procedures.
Reference Book:
1. Cost Accounting, R.S.N. Pillai, V.Bhagavathi, S.Chand & Co.Ltd., New Delhi , 2017 2. Cost accounting, Murthy and Gurusamy, Vijay Nicole imprints Pvt limited, New Delhi, 2014 3. Cost & Management Accounting, S.N.Maheswari, Sultan Chand & Co. Ltd. New Delhi ,2008
Text Book:
1. Cost accounting, S.P. Jain & K.L. Narang, Kalayani Publishers, New Delhi 2017