BCOM 201-18 COST ACCOUNTING

Course Objective: The main aim of this Paper is to familiarize the students with the basics of Cost Accounting and acquaint them with the application of Cost Accounting tools and techniques to aid managerial decision-making. It also aims at making them aware of various latest developments in this field.

UNIT I

Cost Accounting: Meaning, Objectives, Nature and Scope, , Comparison between Cost, financial and management accounting – Application of Cost Accounting – Designing and Installation of Cost Accounting System –Cost Concepts: Cost Classification, Cost Unit – Cost Center –Elements of Cost –Preparation of Cost Sheet, Tenders and Quotations

UNIT-II 

Material: Purchase, Storage and Material Control, Setting of Levels of Stock, Inventory Control Techniques. Methods of Pricing Material Issues Labor: Meaning and Components of Labour Cost. Accounting and Control of Idle time and Overtime Methods of Wage Payment and Incentive Plans, Labour Turnover, Overheads: Collection, Classification, Allocation, Apportionment and Absorption of Overheads, Machine Hour Rate

UNIT III

Reconciliation of Cost and Financial Accounts: Need for reconciliation – Reasons for difference in profits

– Problems on preparation of Reconciliation statements, Methods of Costing: Process Costing, Contract Costing, Marginal Costing and Cost Volume Profit Analysis (Basics)

UNIT IV

Budgetary Control: Concept, Classification, Cash and flexible budgets, Zero Base Budgeting. Contemporary Developments in Costing: Activity-Based Costing, Just In Time (JIT), Target Costing , Life Cycle Costing, Value Analysis, Kaizen Costing, Total Quality Management, Back-flush Costing.