COST ACCOUNTING

Module 1: Introduction to Cost Accounting

12 Hours

Introduction: Meaning, Objectives, Importance and Uses of Cost Accounting, Functions of Cost Accounting Department in an Organization, Difference between Cost Accounting and Financial Accounting; Various Elements of Cost and Classification of Cost; Cost Object, Cost Unit, Cost Driver, Responsibility Centers; Cost Reduction and Cost Control; Methods and Techniques of Costing(Meanings only); Use of IT in Cost Accounting; Limitations of Cost Accounting; Cost Sheet: Meaning and Cost Heads in a Cost Sheet, Presentation of Cost Information in Cost Sheet/Statement- Problems on Cost Sheet, Tenders and Quotations.

Module 2: Materials Cost

12 Hours

Materials: Meaning, Importance and Types of Materials - Direct and Indirect Material.

Materials Procurement: Procedure for Procurement of Materials and Documentation Involved in the Procurement of Materials- (Bill of Materials, Material Requisition Note, Purchase Requisition Note, Purchase Order, Goods Received Note);

Materials Storage and Records: Duties of Storekeeper, Store Records- (Bin Cards, Stores Ledger, Stock Control Cards);

Materials Issues and Valuation: Procedure for Material Issues, Documents Used in Material Issues- (Material Requisition Note, Material Transfer Note, Materials Return Note); Valuation of Material Issues- Preparation of Stores Ledger/ Account - FIFO, LIFO, Simple Average Price and Weighted Average Price Methods- Problems.

Inventory Control: Inventory Control Techniques and Determination of Various Stock Levels- Problems on Level Setting and Computation of EOQ; ABC Analysis, FSN Inventory, VED Inventory, HML Inventory, Physical Control- Two-Bin System, KANBAN, JIT Inventory Management Technique, Perpetual Inventory System (Concepts only).

Module 3: Employee Cost

10 Hours

Employee Cost: Meaning, Components, Classification and Importance of Employee (Labour) Cost in Organizations; Attendance Procedure- Timekeeping and Time Booking, Idle Time- Causes and Treatment of Normal and Abnormal Idle Time, Overtime- Causes and Treatment (Theory only);

Methods of Remuneration (Payment of Wages and Incentives) Problems on Calculation of Earnings under Time Rate (Straight Time Rate, Halsey and Rowan Methods) and Piece Rate Systems (Straight Piece Rate and Taylor’s differential Piece Rate); Employee Turnover- Meaning, Reasons and Effects of LTO/ETO.

Module 4: Overheads

12 Hours

Overheads: Meaning and Classification of Overheads; Accounting and Control of Manufacturing Overheads: Estimation and Collection, Cost allocation, Apportionment, Re-Apportionment and Absorption of Manufacturing Overheads; Problems on Primary and Secondary Distribution and Secondary Distribution using Reciprocal Service Methods only (Repeated Distribution Method and Simultaneous Equation Method); Accounting and Control of Administrative, Selling and Distribution Overheads; Absorption of Overheads: Meaning and Methods of Absorption of Overheads; Problems on Machine Hour Rate

Module 5: Reconciliation of Cost and Financial Accounts

10 Hours

Reasons for Differences in Profits under Financial and Cost Accounts; Procedure for Reconciliation –Ascertainment of Profits as per Financial Accounts and Cost Accounts and Reconciliation of Profits of both Sets of Accounts – Preparation of Reconciliation Statement – Problems.