Cost Accounting

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I - Introduction:                                                                                              

Meaning, objectives and advantages of cost accounting, Difference between financial, cost, and management accounting and. Cost concepts, Installation of a costing system. Role of a cost accountant in an organization.

II - Classification of Costs and Cost Sheet:                              

Classification of Costs and Cost Elements, Profit Centre, Cost Unit, Preparation of Cost Sheet

III - Materials and Labour Costs                                                                  

a. 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, Simple Average, Weighted Average, Replacement, Standard, Treatment of Material Losses.
b. 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.  

IV - Overheads: 

Classification, allocation, apportionment and absorption of overhead. Under- and over-absorption. Capacity costs. Treatments of certain items in costing, like interest on capital, packing expenses, debts, research and development expenses.

V -  Methods of Costing                                                                              

Unit costing, Job costing. Contract Costing. Process costing (process losses and gains, valuation of work in progress, joint and by-products) Service costing (only transport). Accounting Systems: Integral and non-integral systems, Reconciliation of cost and financial accounts.

VI -  Standard costing: 

Meaning of standard cost and standard costing: advantages, limitations and applications, Variance analysis – material, labour, overhead and sales variances, Disposition of variances