Cost Accounting (Principles & Practice)

• For B.Com. & B.Com. (Hons.) III & IV Semester of MATS University
• Cost Accounting For B.Com II Year of Baster University, Bilaspur University, Hemchand Yadav Vishwavidyalaya, Pandit Ravishankar Shukla University, Sarguja University

The book has been published according to the syllabus of B.Com. Part-II examination of various universities of Chhattisgarh. In this revised edition, several new Illustrations (solved) of real worth have been added and questions graded. All the chapters have been closely screened and revised to make the book utility-oriented in a larger measure. Questions asked in various universities examinations have been incorporated in the book.

At the end of the book Cost Accounting Standards have been incorporated in the book.

A chapter on ‘Cost Audit’ has been thoroughly revised on the basis of Companies Act, 2013 and Companies (Cost Records and Rules), 2014. The Illustrations and Practical Questions have been given Topic-wise, graded from easy to difficult. The students of elementary studies may select easy questions Topic-wise and leave difficult ones. The ‘Practice Manual of Cost Accounting’ contains the solution of unsolved Numerical questions given at the end of each chapter in this book.

Cost Accounting Syllabus 

Unit I Introduction: Nature and Scope of Cost Accounting; Cost Concepts and Classification; Methods and Techniques; Installation of Costing System; Concept of Cost Audit; Accounting for Material; Material Control; Concept and Techniques; Pricing of Material Issues; Treatment of Material Losses.

Unit II Accounting for Labour: Labour cost control procedure; Labour turnover; Idle time and overtime; Methods of wage payment—time and piece rates; Incentive schemes. Accounting for overheads: Classification and departmentalization; Absorption of overheads; Determination of overhead rates; Under- and over- absorption and its treatment.

Unit III: Cost Ascertainment; Unit costing; Job, batch, and contract costing.

Unit IV Operating Costing; Process Costing excluding inter-process profits and joint and byproducts.

Unit V Cost Records: Integral and non-integral system; Reconciliation of cost and financial accounts; Break-even Point.

Cost Accounting Book Contents

1. Cost Accounting: An Introduction
2. Cost: Elements, Concepts and Classification (as Per CAS-1)
3. Material Cost Accounting (Including Material Purchase and Issue Pricing)
4. Material/Inventory Cost Control: Concept and Techniques (Including Treatment of Material Losses)
5. Labour Cost Accounting Labour Turnover, Idle Time and Overtime (In The Context of CAS-7)
6. Methods of Wage Payment: Time Rates, Piece Rates and Incentive Schemes
7. Accounting for Overheads: Classification and Treatment
8. Overheads: Allocation, Apportionment (Departmentalisation) and Absorption (In The Context of CAS-3)
9. Machine Hour Rate Method
10. Unit or Output Costing-I (Cost Sheet, Cost Statement and Production Account)
11. Unit or Output Costing-II (Calculation of Estimates, Tender and Quotation Price)
12. Contract Costing (Including As-7)
13. Job and Batch Costing
14. Process Costing (Including Joint Products and By-Products)
15. Process Costing: Inter-Process Profits
16. Process Costing: Equivalent Production
17. Reconciliation of Cost and Financial Accounts
18. Service Costing (Operating Costing)
19. Cost Audit
20. Cost Records
21. Cost Control Accounts: Non-Integrated and Integrated
22. Cost-Volume-Profit Analysis: Break-Even Point
    ● Appendix: Cost Accounting Standards