COST ACCOUNTING NOTES
Here you will get the notes on cost accounting. All the previous year questions covered in the examinations are provided here. Get the best use of it. Also provide your feedback for the same.
The syllabus covered is as follows:
NATURE AND SCOPE OF COST ACCOUNTING
Briefly explain the scope of cost accountancy?
Discuss the nature of cost accounting along with its advantages.
“While Financial Accounting is external, Cost Accounting is internal to the business.” Explain.
“Cost accounting is becoming more and more relevant in the emerging scenario in India” Explain.
What are the objectives and advantages of cost accounting?
What is the difference between financial accounting and cost accounting?
Why cost accounting is necessary?
What are the essentials of good costing system?
BUDGETARY CONTROL
CONTRACT COSTING
Escalation Clause in contract costing
What are the differences between Job Costing and Contract Costing?
How profits are determined in case of completed contracts?
Ascertainment of profits on incompleted contracts
Ascertainment of profits on contracts nearing completion.
Explain cost plus contracts from viewpoint of buyer and manufacturer
PROCESS COSTING
What do you mean by Equivalent Production? Discuss its importance in valuing work in progress?
Explain the treatment of normal loss, abnormal loss and abnormal gain in process costing?
What are the features of process costing?
Explain the applications of process costing in different industries?
Differentiate between process costing and job costing?
Introduction: – Concept of Cost, Costing, Cost Accounting & Cost Accountancy, Limitations of
Financial Accounting, Origin and Objectives of Cost Accounting, Advantages and Limitations of
Cost Accounting, Difference between Financial and Cost Accounting, Cost Unit & Cost Centre,
Elements of Cost, Material, Labour and other Expenses Classification of Cost, Types of Costs
and Preparation of Cost Sheet.
Contract Costing- Meaning, Features and Rules regarding the calculation of Profits in case of
complete and incomplete contracts alongwith the treatment of Work-in-progress.
Process Costing – Meaning, Features, Normal and Abnormal Loss/ Gains, Inter process profits
and equivalent production.
Reconciliation of Cost & Financial accounts
Marginal Costing – Meaning and various concepts – Fixed Cost Variable Cost, Contribution, P/V
Ratio, Break Event Point, Margin of Safety, Managerial Applications.
Standard Costing- Definition and Meaning of Various Concepts Advantages and Limitations of
Standard Costing
Variance Analysis – Material, Labour and Overheads Variances only.
Budget and Budgetary Control- Definition, Meaning and objectives of Budgetary control
Advantages and disadvantages of Budgetary Control, Types of Budget.
