Course Outline

Course Title: (Cost Accounting) B.Com (Term System) Term-III Paper-IV

Course Objectives:
1. State and evaluate choices between alternative product costing systems and methods in a cost-benefit
context.
2. To develop an understanding of students to utilize cost data in planning and control.

Course Contents:
Topic Source Sections
Concept and Scope of Cost Accounting: Ch 2, Book 1 A
Definition and cocept of cost. Cost object, Cost elements. Definition, Ch 1, Book 4
concept and scope of cost accounting. Objectives of cost accounting.
Cost Accounting Vs Financial Accounting. Use of cost data. Chart of
accounts and coding for costing
Cost Classification and Flow: Ch 1, Book 2 A
Product and period cost, direct and indirect cost, Differential cost and Ch 2, Book 1
revenue, Opportunity and Sunk cost, fixed and variable cost, mixed
cost, statement of cost of goods manufactured and sold statement.
Material Costing, Planning and Control: Ch 7,8, Book 1 A
 Procedure for material procurement and use
 Material costing methods
 Costing Procedure for spoiled, scrap and defective work
 Planning materials requirement (EOQ , Inventory levels and
reserve stocks)
 Materials control (Principles and Methods)
Labour Costing, Control and Accounting: Ch 9,10, Book 1 A
 Productivity and efficieny of labour.
 Remuneration Methods (Straight piece rate, differential piece
rate, Incentive wage plans)
 Learning curve theory
 Organisation for labour cost accounting and control
 Accounting for labor related costs (Overtime, Bonus payments,
vacation pay, guaranteed annual wage plans , apprenticeship
and training programs, pension
 Labor related deductions
Factory Overhead Costing and Control: Ch 12,13,Book 1 B
 Nature of factory overhead.
 Procedure of factory overheads including allocation,
apportionment, reapportinment and absorption.
 Repeated distribution and algebric method for reciprocal,
service department costs.
 Calculation and use of Predetermined factory overhead rate.
 Applied and actual FOH, under /overapplied FOH.
Types of Costing Systems: Ch 2,3,4Book 3 B
 Establishment of Cost Accounting system Ch 4,5,6, Book 1
 Principles of double entry system of costing, integrated and
interlocking cost accounts..
 Job costing and batch costing.
  Process Costing – Cost of Production Report
 Process Costing – Average and FIFO method
 Joint product and by-product.
 Service Costing

Recommended Text

1. Matz, Hammer Usry (1985) 9th edition Cost Accounting South-western Publishing Co
2. Garrison H. Ray, Noreen W. Eric (2004) 10th edition Managerial Accounting, Irwin publishers

Further Readings

3. Hilton W. Ronald (2005) Managerial Accounting 6th edition McGraw-Hill Irwin

4. Jain S.P, Narang .K.L 2000 Advanced Cost Accounting, Kalyani Publishers