Course

OPEN ELECTIVES-UG (Arts , Humanities and Commerce)

Unit 1

Costing – meaning – objectives – cost – costing and cost accounting – advantages and disadvantages

– cost accounting and financial accounting – cost accounting and management accounting.

Unit 2

Elements of cost – Materials – purchase procedure – centralized purchasing – decentralised purchasing – stock levels: minimum level – maximum level – Re-order Level – Average stock level – Danger level – EOQ. (simple problems)

Unit 3

Labour – Time keeping and time booking – methods of wage payment: time rate and piece rate system – over time – idle time. (Theory only)

Unit 4

Overheads – meaning and classification – allocation – apportionment and re-apportionment of overheads – Absorption of overheads – concept of over and under absorption of overheads. (Theory only)

Unit 5

Cost sheet – cost unit – preparation of cost sheet – unit costing – estimated cost sheet – expenses excluded from cost sheet.

Course objective:

This course aims to provide students with a comprehensive understanding of cost accounting and different elements of cost and their respective management and accounting procedures.

Course Outcomes:

Student will be able to:

CO1: Assess the advantages and disadvantages of cost accounting and distinguish between costing, cost accounting, and financial accounting.

CO2: Understand the procedures for centralized purchasingand determine appropriate stock levels and EOQ for effective inventory management.

CO3: Understand the different methods of wage payment

CO4: Analyse the classification, allocation, apportionment, and absorption of overheads

CO5: Prepare detailed cost sheets and understand the expenses typically excluded from cost sheets.

Textbooks:

• M. Vineeth, K.R. Shabu – Cost Accounting – Kalyani Publishers
• P. Jain and K.L. Narang – Cost Accounting – Kalyani Publishers

Reference Books:

• P. Iyangar – Cost Accounting Principles – Sultan Chand and Sons
• Khanna Ahuja and Pandey –Practical Costing – Chand and Co.

1. S. Raman – Cost Accounting – United Publishers