Cost Accounting, Ist Edition

Book description

Cost Accounting is designed to provide essential skill sets to managers for planning and controlling their business financials. Covering a wide range of topics, this book is suitable for both undergraduate and postgraduate students of business study courses offered by universities across India. It also meets the requirement of the students of CA, ICWA and CS.

Table of contents

  1. Cover (1/2)
  2. Cover (2/2)
  3. Brief Contents
  4. Contents (1/2)
  5. Contents (2/2)
  6. Preface
  7. About the Author
  8. Chapter 1: Overview of Cost Accounting
    1. 1.1 Introduction
    2. 1.2 Evolution of CA
      1. 1.2.1 Cost
      2. 1.2.2 Costing
      3. 1.2.3 CA
    3. 1.3 Objectives of CA
    4. 1.4 Advantages of CA
    5. 1.5 Limitations of CA
    6. 1.6 Importance of CA to Business Concerns
    7. 1.7 Essentials of a Good CA System
    8. 1.8 CA Versus FA
      1. 1.8.1 A Short Summary of the Differences between CA and FA
    9. Chapter Summary
    10. Exercise for Your Practice
    11. Discussion Questions
  9. Chapter 2: Basic Concepts of Cost
    1. 2.1 Introduction
    2. 2.2 Cost Concepts and Terms
    3. 2.3 Elements of Cost
      1. 2.3.1 Direct Material
      2. 2.3.2 Direct Labour
      3. 2.3.3 Direct Expenses
      4. 2.3.4 Indirect Material
      5. 2.3.5 Indirect Labour
      6. 2.3.6 Indirect Expenses
    4. 2.4 Overheads
      1. 2.4.1 Factory/Works Overheads
      2. 2.4.2 Office and Administrative Overheads
      3. 2.4.3 Selling and Distribution Overheads
    5. 2.5 Classification of Costs
    6. 2.6 Types of Costing
    7. 2.7 Methods of Costing
      1. 2.7.1 Cost Unit
      2. 2.7.2 Cost Centre
      3. 2.7.3 Profit Centre
    8. Chapter Summary
    9. Exercise for Your Practice
    10. Discussion Questions
  10. Chapter 3: Cost Sheet/Statement of Cost
    1. 3.1 Introduction
    2. 3.2 Features of a Cost Sheet
    3. 3.3 Items not Included in Total Costs (­Non-Cost Items)
    4. 3.4 Format of a Simple Cost Sheet
    5. 3.5 Advanced-Type Solved Problems (1/3)
    6. 3.5 Advanced-Type Solved Problems (2/3)
    7. 3.5 Advanced-Type Solved Problems (3/3)
    8. Chapter Summary
    9. Exercise for Your Practice
    10. Discussion Questions
    11. Problems
    12. Examination Problems (1/2)
    13. Examination Problems (2/2)
  11. Chapter 4: Material Control/Inventory Control
    1. 4.1 Introduction
    2. 4.2 Objectives of Material Control
      1. 4.2.1 Essentials of a Good Material Control System
    3. 4.3 Requirements of Material Control
    4. 4.4 Duties of a Storekeeper
    5. 4.5 Levels of Stock
      1. 4.5.1 Minimum Stock Level
      2. 4.5.2 Maximum Stock Level
      3. 4.5.3 Reorder Level
      4. 4.5.4 Danger Level
      5. 4.5.5 Average Stock Level
    6. 4.6 Economic Order Quantity
      1. 4.6.1 How Does EOQ Work?
      2. 4.6.2 How to Calculate EOQ?
    7. 4.7 ABC Analysis
    8. 4.8 Just-in-Time Analysis—the Origin
    9. 4.9 VED Analysis
    10. 4.10 Perpetual Inventory System
    11. 4.11 Periodic Inventory System
    12. 4.12 Stock/Material Turnover Ratio
    13. 4.13 Advanced-Type Solved Problems
    14. Chapter Summary
    15. Key Formulae
    16. Exercise for Your Practice
    17. Discussion Questions
    18. Problems
    19. Examination Problems
  12. Chapter 5: Pricing of Materials
    1. 5.1 Introduction
    2. 5.2 FIFO (First in First Out)
    3. 5.3 LIFO (Last in First Out)
    4. 5.4 Simple Average Method
    5. 5.5 Weighted Average Method
    6. 5.6 Advanced-Type Solved Problems (1/2)
    7. 5.6 Advanced-Type Solved Problems (2/2)
    8. Chapter Summary
    9. Exercise for Your Practice
    10. Discussion Questions
    11. Problems (1/2)
    12. Problems (2/2)
    13. Examination Problems (1/2)
    14. Examination Problems (2/2)
  13. Chapter 6: Labour
    1. 6.1 Introduction
    2. 6.2 Labour Cost
    3. 6.3 Important Factors For Controlling Labour Cost
    4. 6.4 Distinction between Direct and Indirect Labour Costs
    5. 6.5 Labour Turnover
      1. 6.5.1 Internal Versus External Turnover
      2. 6.5.2 Voluntary Versus Involuntary Turnover
      3. 6.5.3 Causes of Labour Turnover
      4. 6.5.4 Effects of Labour Turnover
      5. 6.5.5 Costs of Labour Turnover
      6. 6.5.6 Benefits of Labour Turnover
      7. 6.5.7 Measurement of Labour Turnover
    6. 6.6 Time and Motion Study
      1. 6.6.1 Time Study
      2. 6.6.2 Motion Study
      3. 6.6.3 Merits of Time and Motion Studies
    7. 6.7 Time Wage System
      1. 6.7.1 Merits of Time Wage System
      2. 6.7.2 Demerits of Time Wage Payment
    8. 6.8 Piece Wage System
      1. 6.8.1 Advantages of the Piece Wage System
      2. 6.8.2 Disadvantages of the Piece Wage System
    9. 6.9 Straight Piece-Rate System
    10. 6.10 Differential Piece-Rate System (or Taylor’s Plan)
      1. 6.10.1 Advantages of the Differential Piece-Rate System
      2. 6.10.2 Disadvantages of the Differential Piece-Rate System
    11. 6.11 Merrick’s Multiple Piece-Rate Plan
      1. 6.11.1 Advantages of Merrick’s Multiple Piece-Rate Plan
      2. 6.11.2 Disadvantages of Merrick’s Multiple Piece-Rate Plan
    12. 6.12 Gantt’s Task and Bonus Wage Plan
      1. 6.12.1 Advantages of Gantt’s Plan
      2. 6.12.2 Disadvantages of Gantt’s Plan
    13. 6.13 Halsey’s Premium Plan
      1. 6.13.1 Advantages of Halsey’s Premium Plan
      2. 6.13.2 Disadvantages of Halsey’s Premium Plan
    14. 6.14 Rowan’s Plan
      1. 6.14.1 Advantages of Rowan’s Plan
      2. 6.14.2 Disadvantages of Rowan’s Plan
    15. 6.15 Emerson’s Efficiency Plan
      1. 6.15.1 Advantages of Emerson’s Efficiency Plan
      2. 6.15.2 Disadvantages of Emerson’s Efficiency Plan
    16. 6.16 Advanced-Type Solved Problems (1/2)
    17. 6.16 Advanced-Type Solved Problems (2/2)
    18. Chapter Summary
    19. Key Formulae
    20. Exercise for Your Practice
    21. Discussion Questions
    22. Problems (1/2)
    23. Problems (2/2)
    24. Examination Problems (1/2)
    25. Examination Problems (2/2)
  14. Chapter 7: Overheads Analysis
    1. 7.1 Introduction
    2. 7.2 Overhead Costs
      1. 7.2.1 Definition of Overhead Costs
    3. 7.3 Classification of Overheads
      1. 7.3.1 Functional Classification
      2. 7.3.2 Element-wise Classification
      3. 7.3.3 Behaviour-wise Classification
    4. 7.4 Allocation of Overheads
    5. 7.5 Apportionment of Overheads
    6. 7.6 Allocation Versus Apportionment
    7. 7.7 Bases for Apportionment
    8. 7.8 Primary Distribution of Overheads
    9. 7.9 Secondary Distribution of Overheads
    10. 7.10 Step Method
    11. 7.11 Reciprocal Method
      1. 7.11.1 Simultaneous Equations Method
      2. 7.11.2 Repeated Distribution Method
      3. 7.11.3 Trial-and-Error Method (1/3)
      4. 7.11.3 Trial-and-Error Method (2/3)
      5. 7.11.3 Trial-and-Error Method (3/3)
    12. 7.12 Advanced-Type Solved Problems
    13. Chapter Summary
    14. Key Formulae
    15. Exercise for Your Practice
    16. Discussion Questions
    17. Problems (1/3)
    18. Problems (2/3)
    19. Problems (3/3)
    20. Examination Problems (1/2)
    21. Examination Problems (2/2)
  15. Chapter 8: Overhead Rates
    1. 8.1 Introduction
    2. 8.2 Absorption of Overheads
      1. 8.2.1 Under absorption of Overheads and Over absorption of Overheads
    3. 8.3 Machine Hour Rate
      1. 8.3.1 The Advantages of MHR
      2. 8.3.2 Ordinary MHR
      3. 8.3.3 Composite MHR
      4. 8.3.4 Disadvantages of MHR
      5. 8.3.5 Computation of MHR
    4. 8.4 Miscellaneous Illustrations (1/3)
    5. 8.4 Miscellaneous Illustrations (2/3)
    6. 8.4 Miscellaneous Illustrations (3/3)
    7. 8.5 Advanced-Type Solved Problems (1/2)
    8. 8.5 Advanced-Type Solved Problems (2/2)
    9. Chapter Summary
    10. Exercise for Your Practice
    11. Discussion Questions
    12. Problems (1/3)
    13. Problems (2/3)
    14. Problems (3/3)
    15. Examination Problems
  16. Chapter 9: Reconciliation of Cost and Financial Accounts
    1. 9.1 Introduction
    2. 9.2 Reasons for Disagreement in Profit
    3. Chapter Summary
    4. Key Formulae
    5. Exercise for Your Practice
    6. Discussion Questions
    7. Problems (1/2)
    8. Problems (2/2)
  17. Chapter 10: Contract Costing
    1. 10.1 Introduction
    2. 10.2 Meaning of Contract Costing
      1. 10.2.1 Accounting Procedure of Contract Costing
      2. 10.2.2 Treatment of Profit on Incomplete Contract
      3. 10.2.3 Contract Lasting for More Than One Year (1/6)
      4. 10.2.3 Contract Lasting for More Than One Year (2/6)
      5. 10.2.3 Contract Lasting for More Than One Year (3/6)
      6. 10.2.3 Contract Lasting for More Than One Year (4/6)
      7. 10.2.3 Contract Lasting for More Than One Year (5/6)
      8. 10.2.3 Contract Lasting for More Than One Year (6/6)
    3. Chapter Summary
    4. Key Formulae
    5. Exercise for Your Practice
    6. Discussion Questions
    7. Problems
    8. Examination Problems (1/3)
    9. Examination Problems (2/3)
    10. Examination Problems (3/3)
  18. Chapter 11: Service Costing/Operating Costing
    1. 11.1 Introduction
      1. 11.1.1 When is Operation Costing Appropriate?
      2. 11.1.2 Cost Units Used in Service Costing
      3. 11.1.3 Transport Costing
      4. 11.1.4 Hospital Costing
      5. 11.1.5 Hotel Costing
      6. 11.1.6 Canteen Costing
    2. 11.2 Advanced-Type Solved Problems (1/2)
    3. 11.2 Advanced-Type Solved Problems (2/2)
    4. Chapter Summary
    5. Exercise for Your Practice
    6. Discussion Questions
    7. Problems (1/3)
    8. Problems (2/3)
    9. Problems (3/3)
  19. Chapter 12: Process Costing
    1. 12.1 Introduction
    2. 12.2 Advantages and Disadvantages of Process Costing
      1. 12.2.1 Advantages of Process Costing
      2. 12.2.2 Disadvantages of Process Costing
    3. 12.3 Industries where Process Costing is Applied
    4. 12.4 Characteristic Features of Process Costing
    5. 12.5 Accounting Procedure of Process Costing
    6. 12.6 Normal Loss
    7. 12.7 Abnormal Loss
    8. 12.8 Abnormal Gain
    9. 12.9 Treatment of Normal Process Loss, Abnormal Process Loss and Abnormal Gain
    10. 12.10 Job Costing Versus Process Costing (1/2)
    11. 12.10 Job Costing Versus Process Costing (2/2)
    12. 12.11 Interprocess Profits and their Accounting Procedure
      1. 12.11.1 Interprocess Profits
      2. 12.11.2 Accounting Procedure for Interprocess Profit
    13. 12.12 Equivalent Production (1/3)
    14. 12.12 Equivalent Production (2/3)
    15. 12.12 Equivalent Production (3/3)
    16. 12.13 Joint Products and By-Products
      1. 12.13.1 Features of Joint Products
      2. 12.13.2 By-products
      3. 12.13.3 Difference between By-products and Joint Products
    17. 12.14 Split-Off Point/Separation Point
    18. 12.15 Joint Costs
    19. 12.16 Separation Costs
    20. 12.17 Difficulties in Costing Posed By-products and Joint Products
    21. Physical Units Method
    22. Reverse Cost/Net Realizable Value Method
    23. Chapter Summary
    24. Exercise for Your Practice
    25. Discussion Questions
    26. Problems
    27. Joint Products and By-products (1/2)
    28. Joint Products and By-products (2/2)
  20. Chapter 13: Marginal Costing
    1. 13.1 Introduction
    2. 13.2 Features of Marginal Costing
    3. 13.3 Limitations of Marginal Costing
    4. 13.4 Two Underlying Principles in Marginal Costing
    5. 13.5 Basic Terms Used in Marginal Costing
    6. 13.6 Important Formulae Used in Marginal Costing
      1. Contribution
      2. Break-Even Analysis (1/5)
      3. Break-Even Analysis (2/5)
      4. Break-Even Analysis (3/5)
      5. Break-Even Analysis (4/5)
      6. Break-Even Analysis (5/5)
    7. 13.7 Applications of Marginal Costing
      1. 13.7.1 Profit Planning
      2. 13.7.2 Evaluation of Performance of a Concern
      3. 13.7.3 Fixation of Selling Prices
      4. 13.7.4 Selection of a Suitable Product Mix
      5. 13.7.5 Maintaining a Desired Level of Profits
      6. 13.7.6 Comparing Alternative Methods of Production
      7. 13.7.7 Deciding Among Alternative Courses of Action
    8. Make or Buy Decision
    9. Plant Merger Decision
    10. Product Mix or Sales Mix (1/2)
    11. Product Mix or Sales Mix (2/2)
    12. Elimination of a Product or Department
    13. Fixation of Selling Price
    14. Profit Planning
    15. Introduction of a New Product
    16. Alternative Method of Production
    17. Advanced Sums with Answer (1/2)
    18. Advanced Sums with Answer (2/2)
    19. Chapter Summary
    20. Key Formulae
    21. Exercise for Your Practice
    22. Additional Exercises
    23. Discussion Questions
  21. Chapter 14: Budgetary Control
    1. 14.1 Introduction
    2. 14.2 Meaning of Budget
    3. 14.3 Purposes of Budgeting
    4. 14.4 Salient Features of the Budgetary Control System
      1. 14.4.1 Advantages of the Budgetary Control System
      2. 14.4.2 Limitations of the Budgetary Control System
      3. 14.4.3 Budget Period
    5. 14.5 Different Types of Budgets
      1. 14.5.1 Fixed Budgets
      2. 14.5.2 Flexible Budget
      3. 14.5.3 Need for Flexible Budgets
      4. 14.5.4 Functional Budgets
    6. 14.6 Budget Ratios
      1. 14.6.1 Capacity Usage Ratio
      2. 14.6.2 Standard Capacity Employed Ratio
      3. 14.6.3 Level of Activity Ratio
      4. 14.6.4 Efficiency Ratio
      5. 14.6.5 Calendar Ratio
    7. 14.7 Zero-Base Budgeting
    8. Chapter Summary
    9. Key Formulae
    10. Exercise for Your Practice
    11. Discussion Questions
    12. Problems
    13. Examination Problems (1/2)
    14. Examination Problems (2/2)
  22. Chapter 15: Standard Costing
    1. 15.1 Introduction
    2. 15.2 Advantages of Standard Costing
    3. 15.3 Limitations of Standard Costing
    4. 15.4 Material Variance
    5. 15.5 Labour Variance
    6. 15.6 Wages Revision Variance
    7. 15.7 Overhead Cost Variance
      1. 15.7.1 Variable Overhead Variance
      2. 15.7.2 Fixed Overhead Variance
    8. 15.8 Sales Variance
      1. 15.8.1 Profit Method of Calculating Sales Variances
      2. 15.8.2 Value Method of Calculating Sales Variances
    9. 15.9 Material Variances (1/5)
    10. 15.9 Material Variances (2/5)
    11. 15.9 Material Variances (3/5)
    12. 15.9 Material Variances (4/5)
    13. 15.9 Material Variances (5/5)
    14. Chapter Summary
    15. Key Formulae
    16. Exercise for Your Practice
    17. Discussion Questions
    18. Problems
  23. Overview of Cost Accounting
  24. Reconciliation of Cost and Financial Accounts

Product information

  • Title: Cost Accounting, Ist Edition
  • Author(s): Alex
  • Release date: April 2024
  • Publisher(s): Pearson India
  • ISBN: 9781299444980