Cost & Management Accounting

The Cost & Management Accounting book has been published according to the latest syllabus of B.Com. examination of Ranchi University, Ranchi for B.Com. (Hons.) Semester V CBCS Curriculum.

• 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.
• The Illustrations and Practical Questions have been given Topic-wise, graded from easy to difficult. Important formulae in chapters like Cost-Volume-Profit Analysis and Variance Analysis have been given in a Box at the end of the chapters.
• A companion book ‘Practice Manual of Cost Accounting’ prepared by the same authors has been published for the benefits of the students. The book contains solutions to the unsolved problems given at the end of each chapter of this book under the heading `Numerical Questions’.

Cost & Management Accounting Syllabus For B.Com (Hons.) Semester V of Ranchi University, Ranchi

Unit I Introduction: Meaning, Objectives, and Advantages of Cost Accounting, Difference between financial, cost and management accounting, Cost concepts and classifications, Role of cost accountant in an organization.

Unit II Elements of Cost: a. Materials: Material/Inventory control–concept and techniques, Accounting and control of purchases, storages and issues of materials, Methods of pricing of material issues – FIFO, LIFO, Simple Average, Weighted Average, Replacement, Standard treatment of material losses. b. Overhead: Classification, Allocation, Apportionment and Absorption of overhead.

Unit III Method of Costing: Unit Costing-Preparation of a statement of Cost, Cost Sheet and quotations, Contract Costing, Process Costing-Process losses, Joint and by-products, Reconciliation of cost and financial accounts.

Unit IV Budgeting and Budgetary Control: Concept of Budget and budgetary control, objectives, merits and limitations, Types of Budget – Sales Budget, Production Budget, Material Budget and Cash Budget, Fixed and Flexible Budget.

Unit V Standard Costing and Variance Analysis: Meaning of standard cost and standard costing, advantages, limitations and applications, Variance analysis–material and labor.

Unit VI Absorption versus Variable Costing: Distinctive features and income determination, Cost-Volume-Profit analysis: Break-even analysis, contribution/sales ratio, Margin of safety, Angle of Incidence. Decision making – Shut down or open, Import or Production, Price determination, Key Factor – Material, Make or Buy

Cost & Management 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. Accounting for Overheads: Classification and Treatment
6. Overheads: Allocation, Apportionment (Departmentalisation) and Absorption (in the context of CAS-3)
7. Unit or Output Costing-I (Cost Sheet, Cost Statement, and Production Account)
8. Unit or Output Costing-II (Calculation of Estimates, Tender and Quotation Price)
9. Contract Costing (Including AS-7)
10. Job and Batch Costing
11. Process Costing (Including Joint Products and By-Products)
12. Process Costing: Inter-Process Profits
13. Process Costing: Equivalent Production
14. Reconciliation of Cost and Financial Accounts
15. Budgeting and Budgetary Control
16. Standard Costing
17. Variance Analysis (I) (Material & Labour Variance)
18. Absorption Costing and Marginal Costing: Concept and Computation
19. Cost-Volume-Profit Analysis: Break-Even Point
20. Marginal Costing: as a tool for Decision-Making