It gives us immense pleasure to present the First Edition of Cost Accounting, which has been carefully developed to align with the Second Year B.Com. (Accounting and Finance) and Second Year B.Com. (Financial Management) curriculum under the University of Mumbai, as per the guidelines of the National Education Policy (NEP) 2020 and is applicable from the academic year 2025–26. The objective of this book is to provide students with a clear, practical, and comprehensive understanding of the core principles and applications of cost accounting in a modern business environment.
The book aims to provide clarity of concepts, practical understanding, and exam-oriented preparation for students. Structured as per the latest university syllabus, the content is arranged module-wise and written in simple, student-friendly language.
This syllabus covers key areas of Cost Accounting through four modules. Module 1 introduces the basics of cost classification and preparation of cost sheets. Module 2 explains the need for reconciling cost and financial accounts with practical applications. Module 3 focuses on Contract Costing, including progress payments, retention money, accounting treatments, and profit on incomplete contracts. Module 4 covers Process Costing, explaining process losses, abnormal gains and losses, and the treatment of joint and by-products, supported by practical problem solving. Together, these modules aim to build strong analytical and computation skills in learners.
Contents –
1. Classification of Costs and Cost Sheets
2. Reconciliation of Cost and Financial Accounts
3. Contract Costing
4. Process Costing
Model Question Paper