B.B.M Mangalore University-COST ACCOUNTING

BM-304: COST ACCOUNTING
Objective: To familiarize the students with the costing terminology, principles and applications of costing methods. techniques to the business enterprises,
UNIT I
Functions, scope, cost concepts:
Definitions of Cost. Costing and Cost Accounting. limitation of Financial Accountancy
Distinction between Financial Accounts & Cost Accounts
Cost Unit. Cost Centre
Methods of Costing. Techniques of costing, Classification of Costs Preparation of Cost Sheets 12 hrs
UNIT II
MATERIALS: PURCHASE & STORAGE
Classification of Direct & Indirect materials. Material Control. Purchasing procedure. Purchase requisition, locating the source. Request for quotation, Purchase inquiry Tender. Purchase Order. Receiving and inspecting of materials. Payment of Suppliers bills. Pricing of receipts.
Storage; functions of Stores Department. Stores location & organization Classification & codification. Bin Card. Replenishment of Stock. Setting of Stock levels EOQ ABC analysis. Periodicals & perpetual inventory control system.
12 hrs.
UNIT III
MATERIALS PRICING
Issue of Materials. Material requisition. Bill of Materials. Material returned note. Material transfer note, Pricing the material issues. FlFU LIFO Simple average. Periodical simple average. Moving simple average. Weighted
Returns to shop floor- Treatment of surplus & shortage returns to vendors.
12 hrs.
UNIT IV
Labour Costs: Records Computation & Control. Director labour Indirect labour Control over labour cost Personnel department. Preparation of pay rolls. payment of wages. Internal check for prevention of frauds in the pay roll & payment of wages Labour Turnover causes effects measurement of labour turnover, measures for controlling labour turnover. Time & Mohan study Merits.
Time keeping purposes & methods of time keeping, manual methods. mechanical methods. advantages of mechanical methods of time keeping
Time booking daily time sheets & weekly time sheet
Idle time Normal causes Abnormal causes
Treatment of idle time cost in Cost Accountancy. Treatment of overtime Cost holiday
pay etc. 12 hrs.
Remuneration & Incentives
Systems of wage payment - Essential features of sound wage system Time rate system Piece rate system
Suitability Merits & demerits
Bonus & Premium schemes
Halsey premium plan Rowan Premium plan
Merits & demerits comparison between the Halse & Rowan plan
Bedaul1 point premium system
Differential price rate system
Taylor, merricle, Gantt's task & bonus plan
Group bonus system 12 hrs.
UNIT V
OVERHEADS COST CLASSIFICATION & ABSORPTION
Classification of overheads Allocation,
Apportionment Basis of Apportionment
Apportionment of service department to production departments
Primary distribution summary
Secondary Distribution Summary
Direct Distribution. Step Ladder System
Simultaneous equitation method Repetitive Distribution method - Machine Horce Rate Labour Hour Rate methods of absorption of overheads
12 hrs.
---------Total 60 hrs.
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BOOKS FOR REFERENCE &STUDY:
B.K.Bhar - Cost Accounting
Banaljee Bhabathosh - Cost Accounting
B.M.Lall Nigam & G.L.Sharma - Theory and Techniques of Cost Accountancy
R.L.Gupta - Principles and practice of Cost Accountancy
Arora - Cost &
Swaminathan - Lectures on Costing
N.K.Prasad - Principles & practice of Cost Accountancy
K.S.Adiga - Cost Accountancy