SYLLABUS
T.Y.B. COM
SEMESTER V
Financial Accounting and
Auditing Paper-VIII:
Cost Accounting
TOPICS NO.OF LECTURES
1 Introduction to Cost Accounting 10
2 Material Cost 10
3 Labour Cost 10
4 Overheads 10
5 Classification of Costs and Cost Sheet 10
6 Reconciliation of cost and financial accounts
10
Total 60
1 Introduction to Cost
Accounting
(a) Objectives and scope of Cost Accounting
(b) Cost centres and Cost units
(c) Cost classification for stock valuation,
Profit measurement, Decision making and
control
(d) Coding systems
(e) Elements of Cost
(f) Cost behaviour pattern, Separating the
components of semi- variable costs
2 Material Cost
(i) Procurement procedures—Store procedures and
documentation in respect of
receipts and issue of stock, Stock verification
(ii) Inventory control —Techniques of fixing of minimum,
maximum and reorder levels,
Economic Order Quantity, ABC classification;
Stocktaking and perpetual inventory
(iii) Inventory accounting
Note- Simple practical problems based on
Calculation of EOQ, Raw Material Turnover ratio,
Preparation of stock ledger and
Valuation of Inventories, based on FIFO and Weighted
average cost.
3 Labour Cost
(i) Attendance and payroll procedures, Overview of
statutory requirements, Overtime,
Idle time and Incentives
(ii) Labour turnover
(iii) Utilisation of labour, Direct and indirect labour,
Charging of labour cost, Identifying
labour hours with work orders or batches or capital jobs
(iv) Efficiency rating procedures
(v) Remuneration systems and incentive schemes.
Note-Simple practical problems based on
Preparation of labour cost statement Remuneration and
incentive systems based on
Piece work plan, Haley Premium Plan, Rowan system,
Gantt’s Task
4 Overheads
Functional analysis — Factory, Administration,
Selling and Distribution
Behavioural analysis — Fixed, Variable, Semi-
variable cost
Note-Simple practical problems on
Departmentalization and apportionment of primary
overheads,
Computation of overhead rates including Machine
overhead rates
Basic concepts of treatment of over/under
absorption of overheads- Direct Labour
method and Prime Cost method
5 Classification of Costs and
Cost Sheet
Classification of costs, Cost of Sales,
Cost Centre, Cost Unit, Profit Centre
and Investment
Centre
Cost Sheet, Total Costs and Unit
Costs, Different Costs for different
purpose
Note- Simple practical problems on
preparation of cost sheet
6 Reconciliation of cost and
financial accounts
Practical problems based on
Reconciliation of cost and Financial
accounts.
