Every Firm incurs so many costs which are directly or indirectly related to their Business. But when all the companies incur the same costs, then how few companies can easily track their exact expenses, profits, do forecasting and more which so many other companies can’t?
It’s because companies hire a cost accountant which do the recording and maintaining the cost. Some Companies take this work very lightly which is actually not. Cost Accountant work is to record all the costs of the Business in a manner which can be used to improve Management. The same which you will learn from our Cost Accounting Notes for B.COM, BBA and MBA Students.
Our Cost Accounting Notes are designed for all the Management Students whether you are a B.COM 2nd Year Student, BBA Student or MBA 1st Year Student.
Lecture Notes – Chapter 15: JOB ORDER COST ACCOUNTING AND ANALYSIS JOB ORDER COST ACCOUNTING A cost accounting system records manufacturing activities using a perpetual inventory system. A perpetual inventory system continuously updates the accounting and production records for costs of materials, work in process, and finished goods inventories. SECTION - B: FUNDAMENTALS OF COST ACCOUNTING Study Note 4: Fundamrntals of Cost Accounting 4.1 Meaning, Definition, Significance of Cost Accounting, its relationship with Financial Accounting & Management Accounting 215 4.2 Classification of Costs 227 4.3 Format of Cost Sheet 240 Contents. And by-products. However, cost accounting texts written expressly for health care are scarce. This book thoroughly covers the essentials of cost accounting from a health care perspective, in-cluding all of the basic tools of cost accounting common to all industries, using health care examples. Most of the cost accounting techniques are based on some pre-assumed notions. The apportionment of common costs comes under a lot of criticism. There are different views held by different experts on the treatment of certain items of cost. 2.6 Reports Generated by Cost Accounting Department: The Cost Accounting Department generates. Cost Accounting Page 1 COST ACCOUNTING CORE COURSE IV Semester – B.Com (2011 ADMISSION ONWARDS) UNIVERSITY OF CALICUT SCHOOL OF DISTANCE EDUCATION Calicut University, P.O. Malappuram, Kerala, India-673 635 330.
Introduction To Cost Accounting Pdf
Don’t believe? Ok, Then, Check the Topics of our cost accounting notes.
Cost Accounting Notes Topics
Unit-1:
Cost Accounting Pdf Notes
Cost Accounting- Meaning, Definition, Objectives
Difference between Cost Accounting and Financial Accounting.
Unit-2:
Cost Units and Cost Centers,
Elements and Classification of Cost,
Cost Sheet and Components of Total Cost.
Unit-3:
Material Control– Meaning, Need, Purchasing and Function of Purchase Department,
Purchase Procedure, Stores Control: Minimum Level, Maximum Level, Safety Level,
Labour Cost, Wage Payment System– Time Wage System and Piece Rate System.
Premium and Bonus Plans, Marginal Costing: Meaning, Characteristics, Merits and Limitations.
Unit-5:
Overheads: Introduction, Classification
Source of Collection, Departmentalization,
Unit-6:
Contract Costing- Reconciliation of Cost and Financial Accounts.
Cost Audit and Cost Reduction.
So, these are the Topics you will get in our Cost Accounting Study Notes.
We have set up a very low price of cost accounting notes which everyone can afford. The amount of the Cost Accounting Lecture PDF Notes is like Nothing. It’s of just Rs 199. Here, You don’t have to pay the higher dollars amount subscriptions.
We want every one of you to become a good management student who possesses all the management skills whether it is cost accounting, financial management or human resource management or more.
We are not making profits at Rs 199. Even we are not able to cover our costs at this price. What we want to provide you the quality cost accounting notes which anyone can access.
This is a LIMITED PERIOD OFFER. If I were you, I wouldn’t miss this.
So, Get the Cost Accounting PDF Notes for BBA,B.COM and MBA Students.
It doesn’t matter if you are B.COM 2nd Year, BBA 3rd or 4th Sem Student or MBA 1st year Student, our Cost Accounting Notes will be helpful to you. So, Get the Cost Accounting PDF Notes by clicking on the Button Below.
These Notes are prepared according to the Popular Management Colleges of India.
Still, not sure about the Quality of our Notes?? Then, Let’s have a Short Intro about Cost Accounting.
Introduction to Cost Accounting Lecture Notes
Cost Accounting is a type of process in which we capture and ascertain the cost at each level of production. In Simple words, Cost Accounting is the process of classification, summarization, interpretation of all the expenses incurred in the production process.
According To ICMA London, “Cost Accounting is the establishment of budgets and fix the standards, compare the actual and standard cost, find out the deviations and the profitability”
Objectives of Cost Accounting
Systematic Record of Expenses- The Main objective of cost accounting is to record the costs in a systematic way so that it will help every department of the organization.
Information regarding Each Product- Cost Accounting states the complete Information about the cost of each product from raw material to finished goods.
Determination of the Selling Price- Having a proper record of all the costs for producing the product and passing through all the stages helps in the determination of the selling cost in which the cost accountant adds the amount of profit.
Cost Control- Having a Proper Record of all the costs helps in prioritizing the costs which are more important to the costs than the irrelevant costs. This helps in controlling the irrelevant costs.
Reduce the Costs- Having the Cost of different stages of the product helps in reducing the costs and increasing the profits.
Ascertain the Profit of Each Activity- Cost Accounting helps in knowing the profit of each activity of production from raw material to finished goods.
Advantages of Cost Accounting
Helps in cost control by identifying the irrelevant costs.
Helps in decision making to come to a budget for the expenses.
Ascertain the profitable and unprofitable operations.
Helps in finding out the ideal capacity of the business.
Guides in Price Fixation by knowing each activity costs after adding the profit.
Limitations
The system is more complex because it involves every activity costs which is not easy to manage.
It is not suitable for small scale units because of not incurring so many costs.
It is expensive because having a record of all the costs with doing audits, preparing cost sheets and hiring a specialized cost accountant is not affordable for all the companies.
Not useful for determining tax liability.
Based on the estimation.
Lack of social accounting.
Essentials of Good Costing System
The costing system should be practical.
The system must not be over elaborated which results in the burden.
The printed form should be provided and all the instructions should be written in the printed form.
The accounting Schemes should be arranged in a manner so that the results of two sets of accounts should be reconciled with each other.
The existing structure must be disturbed as little as possible.
The system must be introduced gradually so that all employees can also get training over a period of time. Launching a system gradually helps in moving out for those people who don’t easily move from a new system from the existing one.
The Installation and Operating Cost of the system shouldn’t exceed the value of the management.
Now I hope you have understood the quality of our Cost Accounting PDF Notes for BBA, B.COM 2nd Year, and MBA 1st Year Students. So, get the Cost Accounting Notes by clicking on the button below-
Also Read– Human Resource Management Notes for BBA, B.COM, PDF.
Table of Contents
1 Cost Accounting
Cost Accounting
Topics covered
Topic 1:Introduction to costing accounting Topic 2:Elements of cost and cost behaviour Topic 3:Material costing Topic 4:Labour costing Topic 5:Costing for overheads Topic 6: Process costing Topic 7:Contract costing Topic 8:Batch costing Topic 9:Factory job costing Topic 10: Service costing Topic 11: Emerging issues in cost accounting
Introduction This module unit is intended to equip the trainee with knowledge, skills and attitudes that will enable him/her to ascertain costs and prepare performance reports in a business set up. General Objectives At the end of this module unit, the trainee should be able to:
Apply costing concepts in a business management
Cost goods and services using various costing methods
Price goods and services using various pricing methods
Carry out cost allocation for various overheads
Apply simple costing techniques as used in modem business set ups
Topic 1: Introduction to Cost Accounting
Nature of cost accounting
Importance of cost accounting
Basic terms used in cost accounting
Principles of cost accounting
Distinction between cost accounting and financial accounting
Characteristics of an effective cost accounting system
Duties of a cost accountant
Topic 2: Elements of Cost and Cost Behaviour
Elements of costs of a product
Cost classification
Importance of cost information
Cost statement format
Topic 3: Material Costing
Stock taking methods
Control procedures
Aspects
Stock valuing methods
Methods of valuing material issues
Stores ledger/account format
Topic 4: Labour Costing
Meaning of labour costs
Ascertainment of labour costs
Classification of labour costs
Methods of calculating labour costs
Calculation of labour costs using labour costs methods
Payroll format
Topic 5: Costing for Overheads
Meaning of overhead
Overheads expenses
Distinction between allocation, apportionment and absorption
Classification of overhead expenses into their respective categories
Overhead analysis sheet format
Calculation of overhead absorption rates
Topic 6: Process Costing
Definition of process costing
Elements of process costing
Process account format
Abnormal loss account format
Normal loss account format
Scrap debtor account
Finished goods stock account
Work-in-progress calculation
Statement of equivalent production format
Topic 7: Contract Costing
Definition of contract costing
Features of contract costing
Preparation of contract account
Preparation of contractee account
Topic 8: Batch Costing
Definition batch costing
Procedures for preparation of batch statements
Topic 9: Factory Job Costing
Nature of factory job costing
Procedures in factory job costing
Job cost card layout
Cost estimates
Topic 10: Service Costing
Nature of service costing
Common costs units used in service costing
Preparation of operations cost statement
Topic 11: Emerging Issues
Emerging issues in cost accounting
Challenges posed by emerging issues and trends
Coping with Challenges posed by emerging issues and trends