Cost Accounting

Paper Code: 
HRG 112
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

The objective of this course is to familiarize students with basic costing concepts and tools used in cost accounting.

Course Outcome(COs):

Course

Learning Outcome

 (at course level)

Learning and teaching strategies

Assessment Strategies

Paper Code

Paper Title

HRG  112

Cost Accounting
  1.  To understand the basic concepts and process used to determine to the cost of Inventory Control.
  2. Identify and Calculation of      different Labour Cost at each level of Production.
  3. To be able to analyze and evaluate of information of Apportionment, Allocation and Absorption of different overheads for cost ascertainment or planning.
  4. Explain the basic concept of cost and how costs are presented in Cost Sheets.
  5. Analyze the basic cost sheet and be able to find out the Cost of each Contract

Approach in teaching:

Interactive Lectures, Discussion, Tutorials, Reading assignments & Solving Questions.

 

Learning activities for the students:

Self learning assignments, Effective questions, Seminar presentation, Giving tasks.

Class test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments, Presentation, Individual and group Projects

 

9.00
Unit I: 
Introduction
  • Meaning and definition of cost accountancy,
  •  Nature and Scope of Cost Accounting,
  • Cost Concepts, Distinction between Financial and Cost Accounting.
  •  Elements of Cost,
  •  Cost Statements: An Introduction

 Material:

  • Material Cost Management,
  • Need for Efficient Purchasing,
  • Storing of Materials, Methods of Inventory Control,
  • Some Specific Techniques Related to Operating Control System viz. ABC Analysis, VED Analysis, JIT, FSN,
  •  Material Cost and its Components,
  • Economic Order Quantity,
  • Inventory Levels i.e. Reorder Level, Maximum Stock Level, Minimum Stock Level, Average Stock Level, Methods of Issue Pricing i.e. LIFO, FIFO, Simple Average, Weighted Average, HIFO, Standard Price And Base Stock Method.

 

9.00
Unit II: 
Labour
  • Recruitment, Recording of time and wages,
  • Time Keeping and Time booking,
  • Job Evaluation and Merit rating,
  •  Labour Turnover: meaning and nature,
  • Methods of calculating Labour Turnover,
  • Methods of remunerating Labours,
  •  Incentive Plans,
  •  Allocation of wages,
  • Idle Time: meaning and causes, Treatment of idle time, Over time.

 

9.00
Unit III: 
Overhead
  • Meaning, Collection,
  • Classifications, Apportionment,
  • Allocation and Absorption of    overheads;
  • Treatment of interest on capital,
  • Research and development expenses.

 

9.00
Unit IV: 
Single Output or Unit Costing

 

 

  • Cost sheet,
  • Adjustments in cost sheet,
  • Treatment of Scrap, defectives,
  • Absorption of overheads and calculation of Tender price,
  • Job Costing.

 

9.00
Unit V: 
Contract Costing

 

 

·         Contract accounting,

·         Methods of determining contract price,

·         Escalation clause,

·         Profit on uncompleted contracts

different Types ofproblems related to contract.

Essential Readings: 
  • Cost Accounting: Jain, Khandelwal & Pareek, (Ajmera Book Company, Jaipur)
  • Cost Accounting: Agarwal, Jain, Sharma, Shah & Mangal,(Ramesh Book Depot, Jaipur )
  • Cost Accounting Principles and Practice: M.N. Arora, (Vikas Publication, New Delhi)
  • Cost Accounting: Ravi M Kishore ( Taxmann’s-New Delhi)
  • Cost Accounting: B.M Lall Nigam, I.C. Jain, PHI, New Delhi
  • Cost Accounting Theory and Practice: (Bhabatosh Banerjee, PHI, New Delhi)
  • Cost Accounting-S.N Maheshwari, (Mahavir Publication)
  • Cost Accounting: Jawahar Lal, (Tata Mcgraw Hill, New Delhi) 
  • Cost Accounting: J. Madegowda ( Himalaya Publishing House)

 

Academic Year: 
2020-2021
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