Unit 1: Conceptual Foundation LH 4
Cost & management accounting: Meaning, objectives, importance, advantages and limitations, differences between financial accounting and cost accounting, management accounting and cost accounting.
Cost concept and its classification.
Concept and method of cost segregation: i) Two point method and ii) Least square method &
iii) Estimation of cost
Unit 2: Accounting for Materials LH 3
Materials/Inventory: Concept, reasons and objectives for holding material / inventory. Inventory Control: Meaning, importance and techniques, Economic order quantity with and without discount, Re-order, maximum, minimum, danger and average stock levels under the condition of certainty.
Unit 3: Accounting for Labour Cost LH 3
Labour cost: Concept and need for control of labour cost.
Incentive wages Plan: Halsey and Rowan premium Plan, Taylor's differential piece rate system, Gantt's Task and Bonus plan.
Unit 4: Accounting for Overhead Cost: LH 4
Overhead cost: Meaning, classification, importance
Accounting and Distribution of overhead cost: Allocation, apportionment and absorption of overhead cost.
Unit 5: Accounting for Profit Planning LH 8
Absorption costing: Concept, importance, income statement under absorption costing technique, limitations.
Variable costing: Concept, importance, income statement under variable costing technique, reconciliation statement between absorption and variable costing techniques showing the causes of difference.
Cost Volume profit analysis: Meaning, importance, Contribution margin analysis, Break-even- analysis: under constant and the following underlying situations: changes on selling price, fixed cost, & variable cost, and under step fixed cost, Break-even-analysis of multi-products firms, assumptions of CVP analysis and its limitations.
Unit 6: Standar costing LH 4
Standard costing: Concept, preliminaries to establish standard costing system, difference between standard costing and budgetary control, advantages and limitations.
Variance analysis:
Material variance: Concept and calculation of cost, price, usage, mix and yield variances. Labour variance: Concept and calculation of cost, efficiency, rate, mix, idle time and yield variances.
Unit 7: Flexible budgeting LH 4
Flexible budgeting: Limitations of static budget, concept, importance of flexible budget, flexible budgeting for overhead cost control, flexible budget in different level of activity.
Overhead cost variance: Concept and calculation of capacity, efficiency and spending variances.
Unit 8: Budgeting and Profit Planning LH 12
Concept and objectives of budget. Preparation of budget for manufacturing and non- manufacturing concern: sales budget, production budget, purchase budget, direct labour and overhead cost budget. Cash collection and disbursement budget, budgeted income statement, budgeted balance sheet.
Unit 9: Accounting for Alternative Choices for Decision Making LH 6
Concept of decision making, types of decision making: Make of buy decision, Drop or continue decision, Accept or reject special offer, decision to sell or further processing.
