Cost Accounting

B.Com (Annual) Part-II Paper-IV Maximum Marks: 100 (Pass Marks: 40) Duration of Examination: 3 hrs

Course Contents:
Topic Source Sections
Concept and Scope of Accounting: Definition, cost elements, nature and objective, charts of accounts and coding in cost accounting. Ch 2, Book 1 A
Cost Classification and Flow: Product and period cost, direct and indirect cost, Differential cost and revenue, Opportunity and Sunk cost, fixed and variable cost, mixed cost, statement of cost of goods manufactured and sold statement. Ch 1, Book 2
Ch 2, Book 1 A
Material Planning, Controlling and Costing:
• Procedure for material procurement and use
• Material costing methods
• Inventory valuation at cost or market whichever is lower
• Procedure for spoiled, scrap and defective work
• EOQ , Inventory level and reserve stocks
• Valuation of inventory
• Planning materials requirement
• Materials control Ch 7,8, Book 1 A
Labour Controlling and accounting for costs:
• Productivity and labour costs
• Incentive wage plans
• Learning curve theory
• Organisation for labour cost accounting and control
• Overtime plans, Bonus payments, vocation pay guaranteed annual wage plans , apprenticeship and training programs
• Human resource accounting
• Pension plans
• Labor related deductions Ch 9,10, Book 1 A Factory Overhead Planned, Actual and Applied Variance Analysis:
• Procedure of factory overheads including apportionment
• Applied and actual FOH, under applied FOH. Ch 12,13,Book 1 B
Accounting for mass customization operation: Manufacturing cost flow
• Product cost and service industries
• Different costs for different purposes Ch 2, Book 3 B
Product costing and cost accumulation in a batch production environment:
• Types of product costing system,
• Accumulating cost on job order costing; two stages cost accumulation,
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