QUANTITATIVE TECHNIQUES FOR BUSINESS 2020-2023

Layyina P P

BCM4B05 COST ACCOUNTING Lecturer Hours per week: 6, Credits: 4 Internal: 20, External: 80, Examination 2.5 Hours Objectives: > To familiarize the students with the various concepts and elements of cost. > To create cost consciousness among the students. Module I Introduction : Definition - Meaning and scope - Objectives - Functions -Merits and Demerits - Cost Accounting and Financial Accounting - Cost classification - Elements of cost - Cost units - Cost centre - Types - Methods and Techniques of Costing . (10 Hours, 5 marks) Module II Materials : Importance of Material cost control - Purchase Procedure - Store control -Types of Store - Stores Records - Perpetual Inventory-ABC Analysis - VED Analysis-JIT Inventory Page 15 of 76 - Stock levels - EOQ - Issue of materials - FIFO , LIFO , Simple and Weighted Average methods. (18 Hours, 15 marks) Module III Labour and Overheads: Importance of Labour cost control - Time Keeping and Time Booking - Idle Time - Over Time - Computation of Labour cost - Remuneration Systems and Incentive Schemes. Overheads : Definition - Overhead Allocation - Apportionment - ReApportionment -Direct distribution - Step Ladder - Reciprocal Service methods - Repeated Distribution and Simultaneous Equation methods - Absorption of overheads - Methods of Absorption - Labour Hour Rate and Machine Hour Rate . (25 Hours, 20 marks) Module IV Methods of Costing: Specific order costing: Job costing - Contract costing – Continuous operation costing: Unit Costing - Process Costing (with adjustments of normal and abnormal losses and gains only) - Service costing (only Transport costing) (30 Hours, 30 marks) Module V Cost control Techniques: A. Budgetary Control: – Budget – Budgeting – Budgetary control - Importance – Need for the preparation of budgets - Types of budgets –Preparation of Cash budget only – ZBB B. Standard costing – Standard cost and actual cost – Variance analysis– Types of variances – Cost control by the use of standard costing (only theory – no problems expected). (13 hours, 10 marks) (Theory and Problems may be in the ratio of 40% and 60% respectively Reference Books: 1. Jain & Narang : Cost Accounting 2. Nigam & Sharma : Cost Accounting 3. Khanna Pandey & Ahuja : Cost Accounting 4. M.L Agarwal : Cost Accounting 5. N.K. Prasad : Cost Accounting 6. S.P. lyengar: Cost Accounting 7. S.N. Maheswari : Cost Accounting 8. Horngren : Cost Accounting : A Managerial Emphasis.