Cost Accounting Notes is a branch of accounting that focuses on capturing, analyzing and controlling costs within a business. It involves the systematic tracking of expenses related to the production of goods and services to determine the cost of operations, products or services.
“Cost Accounting Notes” Key concepts in cost accounting include fixed costs, variable costs, direct costs and indirect costs, which are used to calculate the total cost of production. Cost accounting helps businesses make informed decisions regarding pricing, budgeting and cost control. It also provides valuable insights into resource utilization and cost-saving All notes provided by Study Hub Zone
Cost Accounting Notes: ALL UNITS
Unit 1: Introduction to Cost Accounting
Introduction to Cost Accounting provides a fundamental understanding of how businesses track, analyze and manage their costs.
Unit 2: Material Costing
Material Costing is a critical aspect of cost accounting that focuses on determining and controlling the costs associated with materials used in the production process.
Unit 3: Labor Costing
Labor Costing is a process within cost accounting that involves tracking and allocating the costs associated with employee labor in the production of goods or services.
Unit 4: Overheads
Overheads refer to the indirect costs incurred by a business during the production of goods or services that cannot be directly attributed to a specific product or service.
Unit 5: Costing Methods and Techniques
Costing Methods and Techniques are approaches used in cost accounting to calculate and allocate costs to products or services, providing valuable insights into profitability and efficiency.
Syllabus: Cost Accounting
UNIT – 1
(a) Introduction to Cost Accounting – Meaning, scope, objectives, and importance
(i) Financial Accounting vs. Cost Accounting
(ii) Installation of a costing system
(iii) Essentials of a good cost accounting system
(b) Classification of Costs:
Direct and indirect costs, fixed and variable costs, product and period costs, controllable and uncontrollable costs
(c) Cost Concepts and Terminologies:
Cost unit, cost center, profit center, cost sheet – preparation and format
UNIT – 2
Materials Costing:
Material control – Objectives and techniques
Inventory control – EOQ, ABC analysis, VED analysis
Stock levels – minimum, maximum, reorder level, safety stock
Pricing of material issues – FIFO, LIFO, Weighted Average Method, Simple Average
UNIT – 3
Labour Costing:
Methods of wage payment – Time wage and piece wage systems
Incentive plans – Halsey and Rowan plans
Labour turnover – Causes, effects, and remedies
Idle time, overtime, and treatment in cost accounts
UNIT – 4
Overheads:
Meaning and classification – fixed, variable, semi-variable
Allocation, apportionment, and absorption of overheads
Methods of overhead absorption – machine hour rate, labour hour rate
Under and over absorption – causes and treatment
UNIT – 5
Costing Methods and Techniques:
Job Costing:
Meaning, procedure, and preparation of job cost sheet
Contract Costing:
Features, work certified and uncertified, treatment of notional profit
Process Costing:
Process losses – normal and abnormal, inter-process profits
Operating Costing (Service Costing):
Applicable to transport, canteen, hospital – format and computation