We have great pleasure in presenting First edition “Costing Methods” 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 Costing Methods. 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 Job & Batch Costing
Introduction
Job Costing
Meaning of Job Costing
Features of Job Costing
Advantages of Job Costing
Limitations of Job Costing
Preparation of Job Cost Sheet
Steps in Preparation of Job Cost Sheet
Job Cost Sheet
Reports in Job Costing System
Accounting of Costs for a Job
Batch Costing
Meaning of Batch Costing
Features of Batch Costing
Applications of Batch Costing
Economic Batch Quantity (EBQ)
Review Questions
Practical Problems with Answer
Module – 2 Contract Costing
Introduction
Meaning of Contract Costing
Essential of Contract Costing
Features of Contract Costing
Types of Contract
Cost
Plus Contract
Target
Price Contracts
Important Terminologies
Cost of Work Certified
Cost of Work Uncertified
Work-in-Progress
Retention Money
Notional Profit
Estimated Profit
Escalation Clause
Profit on Incomplete Contract
Principles of Incomplete Contract
Review Questions
Practical Problems with Answer
Module – 3 Process Costing
Introduction
Meaning of Process Costing
Preparation of Process Account
Important Aspect of Process Account
Losses, Normal Process Loss
Abnormal Process Loss
Abnormal Gain
Equivalent Production Unit
Review Questions
Practical Problems with Answer
Module – 4 Joint and By-Product Costing
Introduction
Joint Product
Meaning of Joint Product
By-Product
Meaning of By-Product
Accounting for Joint Products
Methods for Allocation of Joint Cost
Accounting for By-products
Illustrations (Reverse Cost method & Marginal Cost Method)
Review Questions
Practical Problems with Answer
Module – 5 Operating Costing
Introduction
Nature of Operating Cost
Types of Cost under Transport Sector
Standing/Fixed Cost
Variable/Running Cost
Maintenance Charges
Simple Cost Unit
Composite Cost Unit
Methods of Ascertaining Composite Cost Unit
Cost per Passenger/tonne Kilometre & Cost per Kilometre/tonne
Ascertain Rate per Passenger Kilometre and per Kilometre
Review Questions
Practical Problems with Answer