I am pleased to present the new edition of Fundamentals of Costing for B.Com., (Regular) of Banglore University as per SEP. The edition has been prepared with students in mind. Feedback from professors and students has helped a lot in its preparation. They have praised the excellent presentation of the subject matter in a simple and lucid style and utility of the solved and unsolved problems from examination point of view. In this edition, quite a few printing errors which could be identified and those pointed out by the readers have been taken care of. Certain portions of the book have been thoroughly revised as per the needs of the syllabus. The book is divided in six chapters as per the syllabus.
Contents –
1. Introduction to Cost Accounting
Introduction
Cost Accounting
Objectives and Functions of Cost Accounting
Cost Accounting and Financial Accounting — Comparison
Limitations or Object ions Against Cost Accounting
Cost Centre
Cost Unit
Cost Object
Methods and Techniques of Costing
Techniques of Costing
Classification of Costs
Elements of Cost
Essentials of a Good Cost Accounting System
Cost Sheet
Cost Accounting Standards (CAS)
Examination Questions
2. Cost Sheet (Unit or Output Costing)
Introduction
Cost Sheet
Items Excluded from Cost
Price Quotations or Tenders and Estimated Cost Sheet
E-tenders
Absorption Costing and Marginal Costing 2.11
Problems and Solutions
Examination Questions
3. Material Cost
Introduction
Inventory or Material Control
ABC Technique
VED Analysis
Stock Levels
Tabular Method of EOQ
Purchase of Materials
E-Procurement
Store-keeping
Stores Records
Documents Authorising Movements of Materials
Stores Requisition Note
Materials Abstract
Inventory Systems
Material Losses
Waste, Scrap, Spoilage and Defectives
Methods of Pricing Material Issues
Stores Ledger Account
Problems and Solutions
Examination Quest ions
4. Labour Cost (Employee 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 Quest ions
5. Overheads
Meaning and Definition
Classification of Overheads
Accounting 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
Capacity Utilization and Overheads
Under and Over-Absorption of Overhead
Treatment of Special Items of Overhead
Problems and Solutions
Examination Questions
6. Reconciliation of Cost and Financial Accounts
Meaning and Need
Reasons for Disagreement in Profit/ Loss
Method of Reconciliation
Problems and Solutions
Examination Questions
