All business graduates must process knowledge of cost accounting concepts and practices. It helps in planning and controlling of costs of products and services and also in making managerial decisions, which in turn assists in maximization of profit. This volume is an attempt to provide the students with thorough understanding of the cost accounting concepts, methods and techniques. I have presented the subject matter in a systematic and intelligible manner with liberal use of numerical illustrations and diagrams so as to make it interesting and sustain student interest.
The book has been divided into six chapters to fully cover the syllabus of B.Com, Bengaluru North University. Based on the conviction that students can really learn cost accounting by solving problems, the theory and problems approach has been adopted to fully meet all the examination needs of the students in one book. Thus apart from well organised theory, the book has sufficient number of solved problems and illustrations and unsolved problems with answers and hints, apart from short answer questions and essay type questions. This will help students tackle examination questions with ease. The theory questions and practical problems have been mostly selected from examinations of BBM, BBA and B.Com. of various leading Indian universities.
Contents –
1. Introduction to Cost Accounting
Introduction to Cost Accounting
Cost Accounting
Objectives and Functions of Cost Accounting
Cost Accounting and Financial Accounting — Comparison
Application of Cost Accounting
Advantages of Cost Accounting
Limitations or Objections Against cost Accounting
Cost Centre
Cost Unit
Cost Object
Methods and Technique of Costing
Cost Reduction and Cost Control
Classification of Costs
Classification of Costs for Decision Making
Elements of Cost
Examination Question
2. Cost Sheet, Tenders and Quotations
Method of Preparing Cost Sheet
Treatment of Stocks
Items Excluded from Cost
Price Quotations or Tenders and Estimated Cost Sheet
E-tenders
Problems and Solutions
Examination Questions
3. Material Cost
Meaning of Materials
Procurement or Purchase of materials
Store-keeping
Stores Records
Documents Authorising Movements of Materials
Stores Requisition Note
Bill of Materials
Material Return Note
Materials Abstract
Inventory systems
Methods of Pricing Material Issues
Stores Ledger Account
Inventory (0r Material) Control
Stock Levels
Tabular Method of E0Q
Problems and Solutions
Examination Questions
4. Employee Cost (Labour Cost)
Introduction and Meaning
Attendance procedure
Time Keeping
Time/Clock Card
Time Booking
Weekly Time Sheet
Payroll Department
Overtime
Idle Time
Methods of Wage Payment (Labour Remuneration)
Time Rate System
Piece Rate System
Incentive Schemes
Problems and Solutions
Examination Questions
5. Overhead Cost
Meaning and Classification of Overheads
Accounting of Overheads
Accounting and control of Overheads
Apportionment of Service Department costs (Secondary Distribution)
Absorption of factory overhead
Methods of Absorption of factory overhead
Administration overhead
Selling and Distribution Overhead
Problems and Solutions
Examination Questions
6. Reconciliation of Cost and Financial Accounts
Reasons for Disagreement in Profit or Loss
Method of Reconciliation
Problems and Solutions
Examination Questions