Category: COST ACCOUNTING

COST ACCOUNTING

Cost Accounting category contains the topics of nature, scope and advantages, elements and components of cost and cost classification, materials purchase, storage and control, pricing, issues and evaluation of materials.

INTRODUCTION TO COST ACCOUNTING

Meaning, definition, need, definition, features of cost accountancy, scope of cost accountancy,, objectives, costing, estimating and pricing, difference between, similarities between accounting and financial accounting, differences between cost accountancy and financial accounts, advantages, limitations, essential factors to be considered while installing system, installation of costing system, characteristics of an ideal system of cost accountancy, methods, types.

ELEMENTS AND COMPONENTS OF COST

Meaning of cost, elements of cost, material cost, labor cost, expenses, components of cost- prime cost, factory cost, office cost, total cost. Cost centre and cost unit. Classification of costs: on the basis of element, on the basis of nature, on the basis of variability or behavior, on the basis of controllability, on the basis of normality, on the basis of function, on the basis of time, on the basis of relevance to decision making and control.

MATERIAL COSTING

Meaning of material control and costing, objectives of material control, advantages of material control system, fundamental principles or requirements of material control, techniques of inventory control

LABOR COSTING: meaning, features, merits and demerits

OVERHEADS TREATMENT:meaning, features, merits and demerits

ACTIVITY BASED COSTING

RECONCILIATION OF COST AND FINANCIAL ACCOUNTS

UNIT COSTING:meaning, features, merits and demerits

JOB COSTING:meaning, features, merits and demerits

BATCH COSTING:meaning, features, merits and demerits

PROCESS COSTING

CONTRACT COSTING

MARGINAL COSTING

STANDARD COSTING

VARIANCE ANALYSIS