Cost Accounting – Bangalore City UniversityNovember 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.
Module No. 4: Overheads
Overheads: – Meaning and Classification of Overheads; Accounting and Control of
Manufacturing Overheads: Collection, Allocation, Apportionment, Re-apportionment and
Absorption of Manufacturing Overheads; Problems on Primary and Secondary overheads
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:
- Mention the causes of labour turn over in manufacturing organisations.
- Name any five documents used for material accounting
- Prepare dummy Payroll with imaginary figures.
- List out the various overhead items under Factory, administrative, Selling &
distribution overheads ( six items each).
- Prepare a cost sheet with imaginary figures.