G Sekar CA Inter Padhuka Corporate & Other Law

1. Introduction to Cost and Management Accounting

• Meaning and Objectives of Cost Accounting

• Distinction between Cost Accounting, Financial Accounting, and Management Accounting

• Classification of Costs

• Installation of a Costing System

2. Material Costing

• Procurement and Storage of Materials

• Inventory Control Techniques: EOQ, ABC, VED

• Stock Levels: Reorder, Minimum, Maximum

• Issue Pricing Methods: FIFO, LIFO, Weighted Average

• Material Losses: Waste, Scrap, Spoilage

3. Labour Costing

• Classification of Labour Costs

• Time Keeping and Time Booking

• Methods of Wage Payment: Time Rate, Piece Rate

• Incentive Schemes: Halsey, Rowan, Taylor

• Idle Time and Overtime Treatment

4. Overheads

• Classification of Overheads

• Allocation, Apportionment, and Absorption

• Machine Hour Rate, Labour Hour Rate

• Under- and Over-Absorption

• Treatment of Special Items

5. Cost Sheet Preparation

• Preparation of Cost Sheet and Statement of Cost

• Prime Cost, Works Cost, Cost of Production

• Treatment of Opening and Closing Stock

• Tenders and Quotations

6. Unit & Output Costing

• Costing for Single/Standardized Products

• Cost per Unit Calculation

• Application in Industries like Cement, Bricks, etc.

7. Job, Batch, and Contract Costing

• Job Costing Procedure

• Batch Costing and Economic Batch Quantity (EBQ)

• Contract Accounts (Long-term Contracts)

• Escalation Clause and Retention Money

8. Process Costing

• Features and Procedure

• Normal and Abnormal Loss/Gain

• Joint and By-Product Costing

• Equivalent Production

9. Operating Costing (Service Costing)

• Costing in Transport, Hospitals, Canteens, Hotels, etc.

• Cost per Passenger-Km / Tonne-Km

Section B: Management Accounting

10. Budget and Budgetary Control

• Objectives and Classification of Budgets

• Functional Budgets

• Flexible Budgeting

• Performance Budgeting

• Zero-Based Budgeting (ZBB)

11. Standard Costing and Variance Analysis

• Setting Standards

• Material, Labour, and Overhead Variances

• Sales and Profit Variance

• Control Ratios

12. Marginal Costing

• Meaning and Applications

• Contribution, P/V Ratio, Break-even Point

• Margin of Safety

• Decision Making: Make or Buy, Shutdown, Product Mix, Export Orders

13. Absorption Costing vs. Marginal Costing

• Comparison and Reconciliation

• Income Determination under Both Methods

14. Cost-Volume-Profit (CVP) Analysis

• Multi-product BEP

• Assumptions and Limitations

• Profit Planning

15. Ratio Analysis

• Classification of Ratios: Liquidity, Solvency, Profitability

• Interpretation and Use in Decision Making

16. Cash Flow and Fund Flow Analysis

• Cash Flow Statement (AS-3 Format)

• Fund Flow Statement

• Working Capital Changes

17. Responsibility Accounting and Transfer Pricing

• Cost Centres and Profit Centres

• Performance Measurement

• Methods of Transfer Pricing: Market Price, Cost-Based, Negotiated