Contents
Part I: Cost Accounting Fundamentals
1 Cost Accounting—An Overview (General Principles)
1.1 Meaning of Cost Accounting
1.2 Objectives of Cost Accounting
1.3 Advantages of Cost Accounting
1.4 Cost Accounting and other Branches of Accounting
1.11 Installation of a Costing System
1.12 Role of a Cost Accountant in an Organization
2.4 Pricing of Stores Receipts (Accounting for Direct Material Cost)
2.6 Classification and Codification of Materials
2.15 Perpetual Inventory System
2.18 Periodic Stock Taking System
2.19 Control Ratio—Inventory Turnover Ratio
2.21 Pricing of Material Issues
2.22 Pricing of Material Returns
3 Direct Labour and Direct Expenses
3.1 Meaning and Definition of Labour Cost
3.7 Job Evaluation and Merit Rating
3.10 Group-Bonus Plans or Schemes
3.11 Incentive Plans for Indirect Workers
4 Overheads Classification, Distribution and Control
4.1 Meaning and Definition of Overheads
4.2 Classification of Overheads
4.3 Methods of Segregating Semi-Variable Costs into Fixed and Variable Costs
4.6 Absorption of Factory Overhead
4.7 Over Absorption or under Absorption
4.8 Treatment of Certain Specific Items of Overheads in Costing
5 Administration Selling and Distribution Overheads
5.2 Accounting for Administration Overhead
5.3 Control of Administration Overhead
5.4 Selling and Distribution Overhead
6 Activity-based Costing (Cost Allocation) System
6.3 Salient Features of Activity-based Costing System
6.4 Implementation of Activity-based Costing System
6.5 Comparing ABC System with Traditional Costing System
7.2 Features of Output Costing
7.6 Difference between Cost Sheet and Production Account
7.7 Preparation of a Cost Sheet
7.9 Preparation of Production Account
8 Job Costing and Batch Costing
8.1 Meaning and Definition of Job Costing
9.1 Meaning and Definition of Contract Costing
9.2 Special Features of Contract Costing
9.3 Contract-Costing Procedure
9.5 Guidelines to Assess Profit on Incomplete Contracts
10.1 Meaning and Definition of Process Costing
10.2 Salient Features of Process Costing
10.3 Job Costing vs. Process Costing
10.5 Elements of Manufacturing Cost
10.7 Joint Products and By-Products
10.8 Accounting for Joint Product Costs
10.9 Accounting for By-Products
10.10 Transfer Prices—Inter-Process Profits
11 Operating Costing or Service Costing
11.1 Meaning of Operating Costing or Service Costing
11.2 Features of Service Costing
11.10 For Professional Courses
12 Reconciliation of Cost and Financial Accounts
12.3 Procedure for Reconciliation of Cost and Financial Accounts
Part IV: Cost Allocation and Accumulation
13 Integrated Accounting System
13.1 Meaning of Integrated Accounting System
13.2 Advantages of Integral System of Accounting
13.4 Prerequisites for Successful Integrated System of Accounting
13.7 Interlocking vs. Integration of Cost and Financial Accounts
Part V: Costing for Planning and Control
14.1 Meaning and Definition of Budget, Budgeting and Budgetary Control
14.3 Objectives of Budgetary Control
14.4 Advantages of Budgetary Control
14.5 Limitations of Budgetary Control
14.6 Prerequisites for the Adoption of Budgetary Control System
14.7 Installation of Budgetary Control System
14.8 Budget Factor or Key Factor
14.10 Classification of Budgets
14.13 Classification of Budgets
14.15 Responsibility Accounting
15 Standard Costing and Variance Analysis
15.1 Meaning and Definition of Standard, Standard Cost and Standard Costing
15.2 Features of a Standard Costing System
15.3 Standard Costing and Budgetary Control
15.4 Standard Costs and Estimated Costs
15.5 Advantages of Standard Costing
15.6 Limitations of Standard Costing
15.7 Prerequisites for Installation of Standard-Costing System
15.10 Concept of Standard Hour: Variance Ratios
15.12 Direct Material Cost Variance Analysis
15.13 Direct Labour-Cost Variance Analysis
15.15 Fixed Overhead Variance Analysis
15.18 Sales Variances—(Based on Turnover)—Turnover Method
15.19 Reporting of Variances to Management
15.20 Treatment of Variances in Cost Accounts
Part VI: Costing for Decision and Control Purposes
16.4 Contribution of Gross Margin
16.5 Ascertainment of Income (Profit) under Marginal-Costing and Absorption-Costing Techniques
16.6 Segregation of Semi-Variable Overheads
16.7 Advantages of Marginal Costing
16.8 Disadvantages of Marginal Costing
16.9 Managerial Applications of Marginal Costing
16.10 Special Circumstances in which the Selling Price at or Below the Marginal Cost is Justified
17 Break-Even and Cost–Volume–Profit Analysis
17.1 Features and Formulae for Profit–Volume Ratio
17.2 Cost–Volume–Profit Analysis
17.3 Objectives (Utility) of CVP Analysis
17.5 Concept of Some Important Terms
17.10 Applications of CVP Analysis
17.12 For Professional Course Students
17.13 Limitations of Break-Even Analysis
18.1 Meaning and Definition of Differential Cost Analysis
18.2 Salient Features of Differential Cost Analysis
18.3 Marginal Costing vs. Differential Cost Analysis
18.4 Applications of Differential Cost Analysis or Utilities of Differential Cost Analysis