Cost Accounting - I Notes | B.Com. (Accountancy) Semester 5 | Mumbai University | munotes

Contents

Module I Classification of Costs and Cost Sheet and Reconciliation of cost and financial accounts

1. What Cost Accounting Is For, and What It Is Not 1
2. Classification of Cost by Function 3
3. Cost Accounting and Financial Accounting Compared 7
4. The Cost Sheet, and the Order Its Lines Must Take 9
5. A Complete Cost Sheet, Worked 12
6. A Cost Statement for the Provision of Services 14
7. Why the Cost Profit and the Financial Profit Differ 17
8. Reconciliation of Cost and Financial Accounts, Worked 20
9. Practice Questions: Cost Sheet and Reconciliation 22

Module II Material and Employee Cost

1. Material Cost: What It Is and Why It Is Controlled 25
2. Purchase Procedures and the Documents They Generate 28
3. Inventory Control Techniques 30
4. Economic Order Quantity 33
5. Reorder Level, Minimum, Maximum and Average Stock 37
6. Methods of Inventory Accounting 40
7. The Stock Ledger, Worked 43
8. Employee Cost, and Direct Expenses 45
9. Attendance and Payroll Procedures 48
10. Idle Time and Overtime 51
11. Labour Turnover 55
12. Utilisation of Labour, and Charging Labour Cost 58
13. Identifying Labour Hours with Work Orders, Batches and Capital Jobs 61
14. Efficiency Rating Procedures 64
15. Remuneration Systems and Incentive Schemes 67
16. The Labour Cost Statement, Including Incentives, Worked 71
17. Practice Questions: Material and Employee Cost 75

Module Appendix Appendix: Overheads, which the older papers ask

1. Overheads: What the Older Papers Ask, and Where It Belongs 79