COST ACCOUNTING

Syllabus

MBA (2T7)

Cost Accounting

Module-1

Conceptual Framework of Cost Accounting: Basic Concepts of Cost Accounting, Objectives, Importance and Advantages of Cost Accounting, Cost Centre, Cost Unit, Elements of Cost, Classification and Analysis of Costs, Relevant and Irrelevant Costs, Differential Costs, Sunk Cost, Opportunity Cost. Unit & Output Costing - Preparation of Cost Sheet and Tender/ Quotations.

Module-2

Marginal Costing and Profit Volume Relationship and Decision Making: Introduction, Application of Marginal Costing in Terms of Cost Control, Profit Planning, Dropping a Product Line, Fixation of Selling Price, Make or Buy Decisions, Key or Limiting Factor, Selection of Suitable Product Mix, Desired Level of Profits, Level of Activity Planning- Break-even-analysis: Application of BEP for Various Business Problems.

Module-3

Operating Costing: Concept of Operating Costing Features of Operating Costing: Transport Costing (Standing Charge, Repair and Maintenance Charge and Running Charges and Log Sheet), Canteen, Hospital and Hotels Costing.

Module-4

Budgeting and Budgetary Control – Concept of Budgeting and Budgetary Control, Essential Features, Merits and Limitations of Budgetary Control. Types of Budgets, Static and Flexible Budgeting, Preparation of Cash Budget, Sales Budget, Production Budget and Master Budget,

Module-5

Standard Costing & Variance Analysis: Introduction, Meaning and Limitations of Standard Costing, Standard Costing as a Management Tool, Historical Costing, Estimated Costing and Standard Costing, Standard Cost and Budgeted Cost, Determination of Standard Cost for Direct Material, Direct Labour Cost.

Variance Analysis: Direct Material Variance – Material Cost Variance, Material Rate Variance, Material Quantity Variance, Material Mix Variance, and Material Yield Variance, Direct Labour Variance – Labour Cost Variacne, Labour Rate Variance, Labour Efficiency Variance, Labour Mix Variance, Idle Time Variance and Labour Yield Variance.