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Cost Accounting

Book Description

Cost Accounting sets a new standard for cost accounting textbooks. It aims at equipping students with a solid grounding in the concepts of cost accounting. With rich pedagogy and an easy-to-understand approach, it meets the specific requirements of the undergraduate students of different Indian universities. This book can also be useful for the students of CA, CS, MBA and ICWA level of Indian universities.

Table of Contents

  1. Cover
  2. Title page
  3. Contents
  4. Dedication
  5. List of Illustrations
  6. Preface
  7. Part I: Cost Accounting Fundamentals
    1. Chapter 1. Cost Accounting—An Overview (General Principles)
      1. 1.1 Meaning of Cost Accounting
      2. 1.2 Objectives of Cost Accounting
      3. 1.3 Advantages of Cost Accounting
      4. 1.4 Cost Accounting and other Branches of Accounting
      5. 1.5 Concepts of Cost
      6. 1.6 Classification of Costs
      7. 1.7 Cost Objects
      8. 1.8 Methods of Costing
      9. 1.9 Techniques of Costing
      10. 1.10 Elements of Cost
      11. 1.11 Installation of a Costing System
      12. 1.12 Role of a Cost Accountant in an Organization
      13. Question Bank
  8. Part II: Elements of Cost
    1. Chapter 2. Direct Materials
      1. 2.1 Direct Materials
      2. 2.2 Purchasing Function
      3. 2.3 Purchase Procedure
      4. 2.4 Pricing of Stores Receipts (Accounting for Direct Material Cost)
      5. 2.5 Stores Functions
      6. 2.6 Classification and Codification of Materials
      7. 2.7 Inventory Control
      8. 2.8 Fixation of Stock Levels
      9. 2.9 ABC Analysis
      10. 2.10 VED Analysis
      11. 2.11 Pareto Analysis
      12. 2.12 FNSD Analysis
      13. 2.13 Two Bin System
      14. 2.14 Continuous Stock Taking
      15. 2.15 Perpetual Inventory System
      16. 2.16 Bin Card
      17. 2.17 Stores Ledger
      18. 2.18 Periodic Stock Taking System
      19. 2.19 Control Ratio—Inventory Turnover Ratio
      20. 2.20 Issue of Materials
      21. 2.21 Pricing of Material Issues
      22. 2.22 Pricing of Material Returns
      23. 2.23 Material Losses
      24. Question Bank
    2. Chapter 3. Direct Labour and Direct Expenses
      1. 3.1 Meaning and Definition of Labour Cost
      2. 3.2 Time-Recording
      3. 3.3 Labour Time-Records
      4. 3.4 Accounting of Labour Cost
      5. 3.5 Types of Workers
      6. 3.6 Work Study
      7. 3.7 Job Evaluation and Merit Rating
      8. 3.8 Labour Remuneration
      9. 3.9 Premium Bonus Plans
      10. 3.10 Group-Bonus Plans or Schemes
      11. 3.11 Incentive Plans for Indirect Workers
      12. 3.12 Co-Partnership
      13. 3.13 Labour Turnover
      14. 3.14 Idle Time
      15. 3.15 Overtime and Shift Work
      16. 3.16 Direct Expenses
      17. Question Bank
    3. Chapter 4. Overheads Classification, Distribution and Control
      1. 4.1 Meaning and Definition of Overheads
      2. 4.2 Classification of Overheads
      3. 4.3 Methods of Segregating Semi-Variable Costs into Fixed and Variable Costs
      4. 4.4 Codification of Overheads
      5. 4.5 Distribution of Overheads
      6. 4.6 Absorption of Factory Overhead
      7. 4.7 Over Absorption or under Absorption
      8. 4.8 Treatment of Certain Specific Items of Overheads in Costing
      9. Question Bank
    4. Chapter 5. Administration Selling and Distribution Overheads
      1. 5.1 Administration Overheads
      2. 5.2 Accounting for Administration Overhead
      3. 5.3 Control of Administration Overhead
      4. 5.4 Selling and Distribution Overhead
      5. Question Bank
  9. Part III: Costing Methods
    1. Chapter 6. Activity-based Costing (Cost Allocation) System
      1. 6.1 Meaning and Definitions
      2. 6.2 Key Terms
      3. 6.3 Salient Features of Activity-based Costing System
      4. 6.4 Implementation of Activity-based Costing System
      5. 6.5 Comparing ABC System with Traditional Costing System
      6. 6.6 Limitations of ABC System
      7. Question Bank
    2. Chapter 7. Single Costing
      1. 7.1 Unit Costing
      2. 7.2 Features of Output Costing
      3. 7.3 Analysis of Cost
      4. 7.4 Cost Sheet
      5. 7.5 Production Account
      6. 7.6 Difference between Cost Sheet and Production Account
      7. 7.7 Preparation of a Cost Sheet
      8. 7.8 Treatment of Scrap
      9. 7.9 Preparation of Production Account
      10. 7.10 For Professional Courses
      11. Question Bank
    3. Chapter 8. Job Costing and Batch Costing
      1. 8.1 Meaning and Definition of Job Costing
      2. 8.2 Features of Job Costing
      3. 8.3 Objectives of Job Costing
      4. 8.4 Procedure of Job Costing
      5. 8.5 Batch Costing
      6. 8.6 Back Flush Costing
      7. Question Bank
    4. Chapter 9. Contract Costing
      1. 9.1 Meaning and Definition of Contract Costing
      2. 9.2 Special Features of Contract Costing
      3. 9.3 Contract-Costing Procedure
      4. 9.4 Types of Contracts
      5. 9.5 Guidelines to Assess Profit on Incomplete Contracts
      6. 9.6 Work-In-Progress
      7. 9.7 Accounting Treatment
      8. Question Bank
    5. Chapter 10. Process Costing
      1. 10.1 Meaning and Definition of Process Costing
      2. 10.2 Salient Features of Process Costing
      3. 10.3 Job Costing vs. Process Costing
      4. 10.4 Process Losses and Gains
      5. 10.5 Elements of Manufacturing Cost
      6. 10.6 Equivalent Production
      7. 10.7 Joint Products and By-Products
      8. 10.8 Accounting for Joint Product Costs
      9. 10.9 Accounting for By-Products
      10. 10.10 Transfer Prices—Inter-Process Profits
      11. Question Bank
    6. Chapter 11. Operating Costing or Service Costing
      1. 11.1 Meaning of Operating Costing or Service Costing
      2. 11.2 Features of Service Costing
      3. 11.3 Users of Service Costing
      4. 11.4 Cost Unit
      5. 11.5 Cost Analysis
      6. 11.6 Transport Costing
      7. 11.7 Boiler House Costing
      8. 11.8 Hospital Costing
      9. 11.9 Staff Canteen Costing
      10. 11.10 For Professional Courses
      11. 11.11 Operation Costing
      12. Question Bank
    7. Chapter 12. Reconciliation of Cost and Financial Accounts
      1. 12.1 Need for Reconciliation
      2. 12.2 Causes of Difference
      3. 12.3 Procedure for Reconciliation of Cost and Financial Accounts
      4. Question Bank
  10. Part IV: Cost Allocation and Accumulation
    1. Chapter 13. Integrated Accounting System
      1. 13.1 Meaning of Integrated Accounting System
      2. 13.2 Advantages of Integral System of Accounting
      3. 13.3 Disadvantages
      4. 13.4 Prerequisites for Successful Integrated System of Accounting
      5. 13.5 Accounting Treatment
      6. 13.6 The Third Entry Method
      7. 13.7 Interlocking vs. Integration of Cost and Financial Accounts
      8. Question Bank
  11. Part V: Costing for Planning and Control
    1. Chapter 14. Budgetary Control
      1. 14.1 Meaning and Definition of Budget, Budgeting and Budgetary Control
      2. 14.2 Forecast and Budget
      3. 14.3 Objectives of Budgetary Control
      4. 14.4 Advantages of Budgetary Control
      5. 14.5 Limitations of Budgetary Control
      6. 14.6 Prerequisites for the Adoption of Budgetary Control System
      7. 14.7 Installation of Budgetary Control System
      8. 14.8 Budget Factor or Key Factor
      9. 14.9 Budget Reports
      10. 14.10 Classification of Budgets
      11. 14.11 Cash Budget
      12. 14.12 Master Budget
      13. 14.13 Classification of Budgets
      14. 14.14 Control Ratios
      15. 14.15 Responsibility Accounting
      16. Question Bank
    2. Chapter 15. Standard Costing and Variance Analysis
      1. 15.1 Meaning and Definition of Standard, Standard Cost and Standard Costing
      2. 15.2 Features of a Standard Costing System
      3. 15.3 Standard Costing and Budgetary Control
      4. 15.4 Standard Costs and Estimated Costs
      5. 15.5 Advantages of Standard Costing
      6. 15.6 Limitations of Standard Costing
      7. 15.7 Prerequisites for Installation of Standard-Costing System
      8. 15.8 Types of Standards
      9. 15.9 Kinds of Standards
      10. 15.10 Concept of Standard Hour: Variance Ratios
      11. 15.11 Analysis of Variances
      12. 15.12 Direct Material Cost Variance Analysis
      13. 15.13 Direct Labour-Cost Variance Analysis
      14. 15.14 Overhead Variances
      15. 15.15 Fixed Overhead Variance Analysis
      16. 15.16 Revision Variance
      17. 15.17 Sales Variances
      18. 15.18 Sales Variances—(Based on Turnover)—Turnover Method
      19. 15.19 Reporting of Variances to Management
      20. 15.20 Treatment of Variances in Cost Accounts
      21. Question Bank
  12. Part VI: Costing for Decision and Control Purposes
    1. Chapter 16. Marginal Costing
      1. 16.1 Marginal Cost
      2. 16.2 Absorption Costing
      3. 16.3 Marginal Costing
      4. 16.4 Contribution of Gross Margin
      5. 16.5 Ascertainment of Income (Profit) under Marginal-Costing and Absorption-Costing Techniques
      6. 16.6 Segregation of Semi-Variable Overheads
      7. 16.7 Advantages of Marginal Costing
      8. 16.8 Disadvantages of Marginal Costing
      9. 16.9 Managerial Applications of Marginal Costing
      10. 16.10 Special Circumstances in which the Selling Price at or Below the Marginal Cost is Justified
      11. Question Bank
    2. Chapter 17. Break-Even and Cost–Volume–Profit Analysis
      1. 17.1 Features and Formulae for Profit–Volume Ratio
      2. 17.2 Cost–Volume–Profit Analysis
      3. 17.3 Objectives (Utility) of CVP Analysis
      4. 17.4 Break-Even Analysis
      5. 17.5 Concept of Some Important Terms
      6. 17.6 Profit-Path Graph
      7. 17.7 Margin of Safety
      8. 17.8 Angle of Incidence
      9. 17.9 Impact of Variable Cost, Fixed Cost and Selling Price on Contribution, P/ V Ratio, BEP and Margin of Safety
      10. 17.10 Applications of CVP Analysis
      11. 17.11 Models
      12. 17.12 For Professional Course Students
      13. 17.13 Limitations of Break-Even Analysis
      14. 17.14 Uses of CVP Analysis
      15. Question Bank
    3. Chapter 18. Differential Cost Analysis
      1. 18.1 Meaning and Definition of Differential Cost Analysis
      2. 18.2 Salient Features of Differential Cost Analysis
      3. 18.3 Marginal Costing vs. Differential Cost Analysis
      4. 18.4 Applications of Differential Cost Analysis or Utilities of Differential Cost Analysis
      5. 18.5 Opportunity Costing
      6. Question Bank
  13. Notes
  14. Acknowledgements
  15. Copyright