# Cost Accounting – Bangalore City University

November 29, 2022

Cost Accounting – Bangalore City University – 3rd Semester – NEP Syllabus

Module No. 1: Introduction to Cost Accounting
Introduction- Meaning and definition- Objectives, Importance and Uses of Cost Accounting,
Difference between Cost Accounting and Financial Accounting; Various Elements of Cost
and Classification of Cost; Cost object, Cost unit, Cost Centre; Cost reduction and Cost
control. Limitations of Cost Accounting.

Module No. 2: Material Cost
Materials: Meaning, Importance and Types of Materials – Direct and Indirect Materials
Procurement- Procedure for procurement of materials and documentation involved in

materials accounting; Material Storage: Duties of Store keeper; Pricing of material issues-
Preparation of Stores Ledger Account under FIFO, LIFO, Simple Average Price and

Weighted Average Price Methods – Problems.
Materials control. – Technique of Inventory Control – Problems on Level Setting and EOQ.

Module No. 3: Labour Cost
Labour Cost: Meaning and Types of labour cost –Attendance procedure-Time keeping and
Time booking and Payroll Procedure; Idle Time- Causes and Treatment of Normal and

Abnormal Idle time, Over Time- Causes and Treatment (theory only). – Labour Turnover-
Meaning, Reasons and Effects of labour turnover

Methods of Wage Payment: Time rate system and piece rate system; Incentive schemes –
Halsey plan, Rowan plan and Taylor differential piece rate system –problems based on
calculation of wages and earnings only.

Manufacturing Overheads: Collection, Allocation, Apportionment, Re-apportionment and
distribution using Reciprocal Service Methods (Repeated Distribution Method and
Simultaneous Equation Method); Absorption of Overheads: Meaning and Methods of
Absorption of Overheads (Concept only); Problems on calculation of Machine Hour Rate.

Module No. 5: Cost Sheet
Cost Sheet – Meaning and Cost heads in a Cost Sheet, Presentation of Cost Information in
Cost Sheet. Problems on Cost Sheet, Tenders and Quotations.

Skill Developments Activities:

1. Mention the causes of labour turn over in manufacturing organisations.
2. Name any five documents used for material accounting
3. Prepare dummy Payroll with imaginary figures.
4. List out the various overhead items under Factory, administrative, Selling &
distribution overheads ( six items each).
5. Prepare a cost sheet with imaginary figures.