CourseHandout

Name of the school/college Chitkara Business School (UG Department) – B.Com (Hons.)
/ department offering the
course
Title of the course Cost Accounting
Academic Year 2023-24 Semester –January to June
Course code B.Com 150 Course Credits 3
Name of the course Dr. Anita Tanwar
coordinator
Names of other members CA. (Dr.) Ajay Dogra
of the team who will be
engaged in teaching the
course
Lecture/Tutorial (Per 15 hours
Week)

1. Any pre-requisites for the course: The students should have a basic understanding of the
concepts related to basic cost accounting and its application. Student should go through the
course handout in details before the commencement of the module.

2. Scope and objective of the course:

Upon successful completion of this course, students will be able:
 To build potential to use appropriate accounting tools and techniques of cost accounting
for managerial decisions.
 To develop an understanding about the latest techniques to facilitate students in
taking strategic responsibilities in today’s dynamic business world.
 To develop an understanding of cost accounting statements.
 To acquaint the ability to apply cost information for cost ascertainment, planning and
control as cost control is a must for meeting the revenue and profit targets

3. Course Outcomes:
CO 1: To understand the basic concepts of cost and management accounting.
CO 2: To be able to prepare cost sheet, pricing of material issues, labor costing & overhead
costing.
CO 3: To analyze different costing techniques for optimal managerial decisions.
CO 4: To understand and apply the concept of standard costing with an emphasis on variance analysis.

4. Mapping of Course Outcomes (COs) with Program Outcomes (PO):

PO CO CO 1 CO 2 CO 3 CO 4 CO 5

PO1
H H H H H
PO2
M M M M M
PO3
M L L L M
PO4
- - - - -
PO5
- - - -- -
PO6
M L L L M
PO7
L L L L L
PO8
M M M M M

5. List of text books:

S. No. Name of text books
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1 Khan & Jain (Latest), Cost Accounting, Tata McGraw-Hill Education (T1)
2 S.P Gupta, Ajay Sharma, Cost Accounting, VK Publications (T2)

6. List of reference books:

S. No. Name of reference books

1 Ravi M Kishore (Latest), Cost & Management Accounting, Taxmann Publisher(R1)

2 S.N. Maheshwari (Latest), Cost & Management Accounting, Sultan Chand & Sons(R2)
3 Jawarhal Lal (Latest), Cost Accounting, McGraw-Hill Education (India)Ltd(R3)
4 SP Jain & KL Narang, Cost Accounting, Kalyani Publications (R4)

7. Important website links which may be referred for relevant online course resources
S. No. Website links

1
www.icsi.in & www.icmai.in

8. Complete course coverage plan:

Lect.No Topics Recommended

. Book
(Hour)
1 – 3 Cost Accounting: Meaning, Objectives, scope, Advantages & TB
Limitations of Cost Accounting, Difference between Financial and 1
Cost Accounting,
4 – 6 Role of cost accounting in decision making, Classification of Cost and TB1
Cost Sheet, Cost Accumulation/Ascertainment

7–9 Cost Centers and Cost Unit, Differences between financial, cost & TB1
management accounting.
10 - 12 Material Costing: Objectives, Techniques of Inventory control: EOQ, TB1
Methods of pricing materials issues - LIFO, FIFO, and Weighted
Average Method & Simple Average Method.
13 - 15 Labor Costing: Labor Turnover, Methods of Wage Payment; TB1
Overheads: Classification of Overheads – Functional and Behavioral.
16 - 18 Marginal Costing: CVP analysis - Marginal cost equation, Contribution TB1
margin
19 - 21 Profit volume ratio, Break-even point, Margin of safety. TB1/TB2

22 - 24 Budgetary systems and types of budget, Quantitative analysis in TB1/TB2

budgeting.
25 - 27 Standard TB1
Costing: Definition, Meaning, Significance, Applications.
28 - 30 Variance Analysis: Material Mix and Yield Variance; Sales TB1/TB2
31 - 33 Mix and Quantity variances and Labor Cost Variance TB1
34 - 36 Planning and operational variance and performance analysis. TB1
37 - 39 Activity based costing, Target costing TB1
40 - 42 Life cycle costing , Relevant cost analysis, cost TB1
volume analysis, Limiting factors in context of cost accounting,
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43 - 45 Pricing decisions, Make or buy and other short decisions and TB1
uncertainty in decisions.

9. Details of all evaluation components:

Evaluation Type of Component No. of Weightage Mode of
Componen Assessments of Assessment
t Compone
nt
Component 1 Assignment -I 1 10% Offline

Component 2 Assignment -II 1 10% Offline

Component 3 Class Test 1 10% Offline

Component 4 End Term Examinations 1 70% Offline

Total 100%

10. Any other important details:

a) Attendance will be captured by the faculty itself, hence detention policy will apply.
b) As per Academic Guidelines minimum 75% attendance is required to become eligible for appearing
in the End Semester Examination.
c) Going through pre-reads is a must before all online class sessions. You are expected to see the videos
before an online class for it to be used for discussion.
d) Timely submission of assignments is mandatory
e) The online/offline class will commence as per the program after which there will be an online/offline
doubt session.
f) The class evaluations are due on the day they are scheduled. You will receive extra rewards for
participating and being active during online learning.

11. Summary of the course topics to be covered in brief:

Contents Number of
contact
hours
Cost Accounting: Meaning, Objectives, scope , Advantages & Limitations
of Cost 1-9
Accounting, Difference between Financial and Cost Accounting, Role of cost
accounting in decision making, Classification of Cost and Cost Sheet, Cost
Accumulation/Ascertainment, Cost Centers and Cost Unit, Differences
between financial, cost & management accounting.

Material Costing: Objectives, Techniques of Inventory control: EOQ, Methods 10-21

of pricing
materials issues - LIFO, FIFO, and Weighted Average Method & Simple
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Average Method.
Labor Costing: Labor Turnover, Methods of Wage Payment; Overheads:
Classification of Overheads – Functional and Behavioral. Marginal Costing:
CVP analysis - Marginal cost equation, Contribution margin, profit volume
ratio, Break-even point, Margin of safety.

Budgetary systems and types of budget, Quantitative analysis in budgeting; 22-36

Standard
Costing: Definition, Meaning, Significance, Applications. Variance
Analysis: Material Mix and Yield Variance; Sales Mix and Quantity
variances and Labor Cost Variance; Planning and operational variance and
performance analysis.

Activity based costing, Target costing, Life cycle costing, Relevant cost 37-45
analysis, cost
volume analysis, Limiting factors in context of cost accounting, Pricing
decisions, Make or buy and other short decisions and uncertainty in decisions.
TOTAL 45

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a. Course execution plan:

Sr. No Topics Due date of lecture Deviation from
Delivery the plan, if any
with
remarks
1-3 Cost Accounting: Meaning, Objectives, scope, 09.01.2024
Advantages & Limitations of Cost
Accounting, Difference between Financial and
Cost Accounting,
4-6 Role of cost accounting in decision making, 10.01.2024
Classification of Cost and Cost Sheet, Cost
Accumulation/Ascertainment

7-9 Cost Centers and Cost Unit, Differences 11.01.2024

between financial, cost & management
accounting.
10 - 12 Material Costing: Objectives, Techniques of 15.01.2024
Inventory control: EOQ, Methods of pricing
materials issues - LIFO, FIFO, and Weighted
Average Method & Simple Average
Method.
13 - 15 Labor Costing: Labor Turnover, Methods of 16.01.2024
Wage Payment; Overheads: Classification of
Overheads – Functional and Behavioral.
16 - 18 Marginal Costing: CVP analysis - Marginal cost 17.01.2024
equation, Contribution margin
Profit volume ratio, Break-even point, Margin of 18.01.2024
safety.

19 - 21 Budgetary systems and types of budget, 22.01.2024

Quantitative analysis in budgeting.
22 - 24 Standard 23.01.2024
Costing: Definition, Meaning, Significance,
Applications.
25 - 27 Variance Analysis: Material Mix and Yield 24.01.2024
Variance; Sales
Mix and Quantity variances and Labor Cost 25.01.2024
Variance
28 - 30 Planning and operational variance and 29.01.2024
performance analysis.
Activity based costing, Target costing 30.01.2024
31 - 33
34-36 Life cycle costing , Relevant cost analysis, cost 01.02.2024
volume analysis, Limiting factors in context of
cost accounting,
37-39 Pricing decisions, Make or buy and other short 05.02.2024
decisions and uncertainty in decisions.
40-42 Cost Accounting: Meaning, Objectives, scope, 06.02.2024
Advantages & Limitations of Cost
Accounting, Difference between Financial and
Cost Accounting,
43-45 Role of cost accounting in decision making, 07.02.2024
Classification of Cost and Cost Sheet, Cost
Accumulation/Ascertainment

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b. Academic Honesty Policy:

Chitkara University ensures the implementation of the highest level of academic integrity in all the
documents being prepared / adopted by its Faculty members and students.
Any breach of the same will be tantamount to severe academic penalties.

c. This Document is approved by:

Designation Name Signature

Faculty Incharge CA (Dr.) Ajay Dogra

Course Coordinator Dr. Anita Tanwar

Dean Dr. Rashmi Aggarwal
DD/MM/YYYY 06/01/2024

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