Cost Accounting Outline Cimp

Cost Accounting
Program Trimester : PGDM : II Class of Sessions : 20122013 : 14
Objective
Understanding Cost and Management Accounting and in appreciating it as a tool for decision making. It aims at equipping students with techniques in managerial functions of planning, controlling and decision making.
TEXT BOOK: Cost & Management Accounting
Ravi M Kishore(taxman)
Reference Books Cost and Management Accounting Management Accounting Accounting for Management Cost and Managerial Accounting Management Accounting-Business Strategy Management Accounting-Financial Strategy Management Accounting-Information Strategy Management Accounting-Performance Management
Author / Publication Colin Drury Khan M Y and P K Jain Richard Lynch & Robert Williamson Jack Gray & Don Ricketts Sims Adrian And Richard Smith Parkinson,christine. Lewin,Alan Scarlett Bob C And Colin Wilks
Detailed Curriculum
Introduction to Management Accounting Role and scope of management accounting, Interface of management accounting with Financial Accounting and Cost Accounting Cost Concepts Types of cost historical costs, future costs, standard costs, period costs, prime costs, direct and indirect costs, opportunity costs, imputed costs, programmed costs, joint cost, sunk cost, discretionary cost, out of pocket cost, differential cost, capacity cost, conversion cost, committed cost. Cost unit, cost center. Cost Allocation Prime cost and overheads; Classification of overheads, absorption of overheads; Under-absorption and
over-absorption of overheads. Methods of costing Unit costing, Contract costing, Process costing, Operating/service costing, Joint products and by-products Cost Volume Profit Analysis Cost Volume Profit relationship, cost behavior pattern, Marginal costing, Contribution margin concept, Marginal and absorption costing distinguished, break even point, uses of break even analysis, applying CVP analysis, limitations of CVP analysis. Decisions involving alternate choices Nature of managerial decision making; Characteristics of costs for decision making; Concept of differential costs; Decisions to make or buy, to accept special order, to drop a line, selling or further processing, decision regarding equipment replacement and decision regarding construction of facilities. Cost Analysis and Pricing Decisions The need for pricing decision; Objective of pricing; Pricing strategy; Factors influencing pricing decisions; Influence of costs as a pricing tool Budgeting and Budgetary Control Elements of management planning and control system; Budgeting as a tool of management planning and control; Uses and organization of budget; Concept of limiting budget factor; Budget preparation Standard Costing and Variance Analysis Importance of standard costing vs Historical Costing; The need for standards and its limitations; Types of standards and its levels; The process of developing standards; The establishment of standard costs; Variance analysis Responsibility Accounting Introduction; Pre-requisites of responsibility accounting; Advantages and limitations of responsibility accounting; Controllable and uncontrollable costs in responsibility accounting; Responsibility centers of control cost center, revenue center, profit center, investment center Divisional performance appraisal - The meaning of divisions; Measurement of divisional performance return on investment and residual income approach Strategic Cost Management(NOTES) Meaning and definition of ABC; Value chain analysis, target costing, life cycle costing, quality costing
Problem Solving
Topic of coverage Cost Allocation Methods of Costing Cost Volume and Profit Analysis Decision involving alternate choices Budgeting and Budgetary Control Standard Costing and Variances Analysis Activity Based Costing Problem Solving Problems in overhead absorption and under and over absorption Problems in each of the method Problems on marginal costing and CVP analysis Problems relating to subtopics of Decision involving alternate choices Problems in Preparation of budgets Problems in calculating variances for different elements of costs and interpreting the same Problems in ABC
Summarized Session Plan

Topic of Coverage Introduction to Management Accounting Cost Concepts Cost Allocation Methods of costing Cost Volume Profit Analysis Decisions involving alternate choices Cost Analysis and Pricing Decisions Budgeting and Budgetary Control Standard Costing and Variance Analysis Responsibility Accounting Strategic Cost Management Total No. of Sessions No. of Sessions 1 2 2 3 2 4 1 2 4 1 2 24

Cost Accounting Outline Cimp

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Cost Accounting Outline Cimp

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Cost Accounting

Program Trimester : PGDM : II Class of Sessions : 20122013 : 14

TEXT BOOK: Cost & Management Accounting

Summarized Session Plan

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