Description

Cost Accounting

 

TYBCOM Semester V

 

Syllabus

 

1. Introduction to Cost Accounting
(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

2. 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
Note : Simple practical problems based on
Calculation of EOQ
Raw Material Turnover Ratio
Preparation of stock ledger and valuation of inventories, based on FIFO and Weighted average cost

3. Labour 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
Note : Simple practical problems based on :
Preparation of labour cost statement
Remuneration and incentive systems based on Piece work plan, Halsey Premium Plan, Rowan system, Gantt’s Task

4. Overheads
Functional Analysis – Factory, Administration, Selling and Distribution
Behavioural Analysis – Fixed, Variable, Semi Variable Cost
Note : Simple practical problems on
Departmentalization and apportionment of primary overheads,
Computation of overhead rates including Machine overhead rates
Basic concepts of treatment of over/under absorption of overheads – Direct Labour method and Prime Cost method

5. Classification of Costs and Cost Sheet
Classification of Costs, Cost of Sales, Cost Centre, Cost Unit, Profit Centre and Investment Centre
Cost Sheet, Total Costs and Unit Costs, Different Costs for different purposes
Note : Simple practical problems on preparation of cost sheet

6. Reconciliation of Cost and Financial Accounts
Practical problems based on Reconciliation of Cost and Financial Accounts