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
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- 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.
5 Lessons
Updated: Feb 2022