Cost and Management Accounting

Syllabus

2T3: Cost and Management Accounting

UNIT 1

Introduction to Cost Accounting: Meaning of Cost, Costing and Cost Accounting, Features, Scope and Functions of Cost Accounting, Advantages and Limitations of Cost Accounting; Concept of Cost; Analysis and Classification of Costs; Elements of Cost; Preparation of Cost Sheet (Statement of Cost); Quotations and Tender. Introduction and Need for Reconciliation between financial Accounts and Cost Account, Reasons for Disagreement in Profit; Preparation of Reconciliation Statement.

UNIT 2

Process Costing: Meaning, Features and Applicability, Difference between Process and Job Costing, Wastage and by-Products, Normal and Abnormal Loss. Preparation of Process Accounts (up to Abnormal Loss and Abnormal Gain only). Operating Costing- Classification of Costs, Features of Operating Costing: Preparation of Log Sheet for Transport (Goods and Passenger) Costing only.

UNIT 3

Marginal Costing and Decision Making: Introduction, Application of Marginal Costing in Terms of Cost Control, Level of Activity Planning- Break-Even-Analysis: Application of BEP for Various Business Problems in Terms of Profit Planning, Closing Down a Plant, Dropping a Product Line, Make or Buy Decisions, Selection of Suitable Product Mix, Desired Level of Profits, Closing Down or Suspending Activities.

UNIT 4

Budget and Budgetary Control: Concepts, Types of Budgets, Budgetary Control, Types of Budgets, Advantage and Limitations of Budgets, Simple Problems Based on Flexible and Cash Budget, Basic Concept of Zero-base Budgeting.