We have great pleasure in presenting First edition “Cost Accounting” written for students of UG courses. The related matters are written in a simple and easily understandable.
This volume is an attempt to pro vide the students with thorough understanding of Cost Accounting. We have presented the subject matter in a systematic manner with liberal use of charts and diagrams where ever necessary so as to make it interesting and sustain students’ interest.
Contents –
Module – 1 Introduction to Cost Accounting
Introduction
Cost Accounting
Meaning of Cost Accounting
Objectives of Cost Accounting
Importance of Cost Accounting
Uses of Cost Accounting
Functions of Cost Accounting
Difference between Cost Accounting and Financial Accounting
Elements of Cost
Classification of Cost
Cost Reduction
Cost Control
Limitation of Cost Accounting
Methods and Techniques of Cost Accounting
Cost Sheet
Meaning of Cost Sheet
Proforma of a Cost Sheet
Problems on Cost Sheet on unit base
Tenders and Quotations
Review Questions
Practical Problems with Answer
Module – 2 Material Cost
Introduction
Material Cost
Meaning of Material Cost
Importance of Material Cost
Types of Material Cost
Procedure for Procurement of Materials
Duties of Store Keeper
Stock Level Settings
Concept of EOQ
Valuation of Material Issues
Preparation of Stores Ledger
FIFO
LIFO
Simple Average Price
Weighted Average Price
Review Questions
Practical Problems with Answer
Module – 3 Employee Cost
Introduction
Employee Cost
Meaning of Employee Cost
Components of Employee Cost
Classification of Employee Cost
Importance of Employee Cost
Attendance Procedure
Time Keeping
Time Booking
Idle Time
Abnormal Idle Time
Overtime
Causes and Treatment of Overtime
Methods of Remuneration
Computation of Wage
Time and Piece Rate
Incentive Schemes
Halsey Plan
Rowan Plan
Taylor’s Piece Rate System
Merrick’s Differential Piece Rate System
Review Questions
Practical Problems with Answer
Module – 4 Overhead Costing
Introduction
Overheads
Meaning of Overheads
Classification of Overheads
Accounting for Overheads
Estimation of Overheads
Collection of Overheads
Cost Allocation
Apportionment of Overheads
Re-apportionment
Primary and Secondary Overhead Distribution
Repeated Distribution
Simultaneous Equation Methods
Absorption of Overhead
Meaning of Absorption
Methods of Absorption
Computation of Machine Hour Rate
Review Questions
Practical Problems with Answer
Module – 5 Reconciliation of Cost and Financial Accounts
Introduction
Reconciliation
Meaning of Reconciliation
Definition of Reconciliation
Reasons for difference in Profits under Financial and
Cost Accounts
Procedure of Reconciliation
Reconciliation of Profits of both Sets of Accounts
Preparation of Reconciliation Statement
Memorandum Reconciliation Account
Review Questions
Practical Problems with Answer