Contents Of Cost Accounting
Meaning, objectives and advantages of cost accounting; Difference between cost accounting and financial accounting; Cost concepts and classifications; Elements of cost.
Materials: Material/inventory control- concept and techniques, Accounting and control of purchases, storage and issue of materials. Methods of pricing of materials issues – FIFO, LIFO and Average
Labour and Overhead
Labour: Accounting and Control of labour cost. Time keeping and time booking. Concept and treatment of idle time, over time, labour turnover and fringe benefits. Methods of wage payment and the Incentive schemes- Halsey, Rowan, Taylor’s Differential piece wage.
Overhead: Classification, allocation, apportionment and absorption of overhead. Under- and overabsorption.
Methods of Costing
Methods of Costing: Unit costing, Job costing. Contract Costing, Process costing (excluding process losses, valuation of work in progress, joint and by-products)
Budgeting and Standard Costing
Budgeting and budgetary control: Concept of budget and budgetary control, objectives, merits, and limitations, Budget administration, Functional budgets, Fixed and flexible budgets, Zero base budget Standard costing and variance analysis: Meaning of standard cost and standard costing: advantages, limitations and applications, Variance analysis – material, labour and overhead.
Absorption versus variable costing: Distinctive features and income determination. Cost-Volume Profit Analysis: Break-even analysis-algebraic and graphic methods. Contribution, Margin of safety and Angle of incidence