SEMESTER IV
Core : V
COST ACCOUNTING Course Code: U24CM4os
Hours :S
Credit:
Course Objective
On completion of this course the students will be familiar with the
importance
ascertainment, reduction and control of Material, Labour and Overheads,
of cost
would have
developed the skills needed to apply costing technique for each element of cost and would
have understood the procedures to calculate the cost of the products and services.
Unit I Introduction to Cost Accounting, Cost sheet, Tenders and quotations & Material
Control
Cost Accounting
I.I.I Definition of Cost, costing, cost Accounting and cost Accountancy
I.I.2
Scope of Cost Accounting
I.I.3 Merit and Demerit
I.I.4 Classification of cost
I.I^ Elements of cost
I.I.6 Cost Centre
I.I.7 Cost unit
I.I.3 Cost control
I.I.9 Cost reduction
I.2 Cost sheet
I.2.I
Treatment of stock or incentives
I.2.2 Tender and quotâtions
Material Control
L3
I.3.I
Introduction
I.3.2 Meaning of material control
I.3.3 Objectives of material control
I.3.4
Essentials of material control
Purchase control
I.3-5
control
.3.6 Store keeping and stock control and inventory
1.3-7 Levels of stock and Economic Ordering Quantity
1.3.8 ABC Analysis
I.4 Pricing of material issues
I.4.1
LIFO(Last In First out)
I.4.2 FIFO (First In First Out)
I.4-3
Simple Average Method
Weighted Average Method
I.4.4
Unit IIComputation and Control of Labour Cost
2.1 Labour cost
2.1.I Introduction
2.1.2 Types of Labour
2,2 Labour turnover
2.3 Méthods and'nmeäsurement of Labour turnover
2.3.I Separation method
2.3.2 Replacemnent method
2.3-3 Flux method
2.4 Idle time and Overtime
2.5 Methods of remuneration
2.5.I Time rate system
2.5.2 Piece rate system
2.5.3 Straight piece rate system
2-5.4 Taylors differential piece rate system
2.5.5 Merrick's Multiple or differential piece rate system
2.5.6 Gantt's task and bonus plan
2,6 Premium Bonus plans
2.6.I Halsey premium plan
2.6.2 Halsey-weir scheme
2.6.3 Rowan plan
2.6.4 Barth's variable sharing plan
2.6.5 Emerson's Efficiency plan
2.6.6 Bedeaux's point premium system
Unit III Overheads
3.I Meaning and Definition of overheads
3.2 Importance of Overhead cost
3-3 Allocation of Overheads
3.4 Apportionment
3.4.I Primary distribution
3.4.2 Secondary distribution
3:4.2.1 Repeated Distribution method
3.4.2.2 Simultaneous equation method
3-5 Absorption of overheads
3.5.I Overhead Rate
3-5.2 Types of overhead rate
3.6
Methods
3.6.1
of
absorption of
3.6.2 Direct
Direct material costoverhead
method
Labour cost method
3.6.3 Prime cost
3.6.4
3.6.5 Direct Labourpercentage method
hour method
3.6.6 Machine hour rate
method
3.7 Computation
Under and over of machine
hour rate
Unit IV
absorption of overheads.
Reconciliation ofccost and financial
and Contract) accounts & Methods ofE costing Job, Batch
4.I
Reconciliation of cost and financial accounts
4.2 Job costing
4.2.I Definition of job costing
4.2.2 Job costing procedures
4.2.3 Forms used in job costing
4-3 Batch Costing
4-3.I Definition of Batch costing
4.3.2 Determination of Economic Batch Quantity
4.4 Contract costing
4.4.1 Introduction
4.4.2 Characteristic Features of contracts and contract costing
4.4.3 Recording of Costs of a Contract
4.4.4 Recording of Value and Profit on Contracts
4.4-5 Profit or Loss on Contracts
4.4,6 Escalation clause
4.4:7 Cost plus Contracts.
Unit VMethods of costing (operating Costing and process Costing)
S.I Operating and operation costing
S.I.I Meaning and definition
S.I.2 Operation and service costing
S.I.3 Transport Costing
SIi4 Costing Procedures in Transport of Costs
S.I5 Presentation of Costs
S.I.6 Computation of Cost Unit in Road Transport BusinessBUS INESS
S.I.7 Importance of Running Kilometers
s.i.8 Types of problems
S.2 Process Costing
S.2.I Meaning of Process Costing
S.2.2 Costing procedures
S.2.3 Important aspects of Process Costing - (Normal loss, Abnormal loss and
gain)
S.2.4 Work in progress (excluding equivalent production concepts)
Text Book
I. Reddy T.S. and Hari Prasad Reddy Y.- Cost Accounting- Margham Publications
--(2019)
2. Jain S.P &Narang K. L.- Cost Accounting- Kalyani, Publications (2018).
3. Workbook prepared by the Department of Commerce, Bishop Heber College.
Books for Reference
Accounting-Sriramn Publications
I. Dr. R.Ramachandran Dr. R.Srinivasan -Cost
(2018)
HillPublications (2019)
2. Murthy &Gurusamy S -Cost Accounting-Tata McGraw
Web links: (Swayam/nptel/...)
1,
https://icmai.in/upload/Students/Syllabusz2016/Inter/Paper-8-New.pdf
& C)
Theory - 20 96( Section A), Problems - 8o %( Section B
