Cost Accounting, Ist Edition

Cost Accounting, Ist Edition

by Rajasekaran
Released April 2024
Publisher(s): Pearson India
ISBN: 9781299446212

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Book description

The book sets a new standard for cost accounting textbooks. It aims at equipping students with a solid grounding in the concepts of cost accounting. With rich pedagogy and an easy-to-understand approach, it meets the specific requirements of the undergraduate students of different Indian universities. This book can also be useful for the students of CA, CS, MBA and ICWA level of Indian universities.

Table of contents

  1. Cover
  2. Contents (1/2)
  3. Contents (2/2)
  4. List of Illustrations
  5. Preface
  6. Part I: Cost Accounting Fundamentals
    1. Chapter 1: Cost Accounting—An Overview (General Principles)
      1. 1.1 Meaning of Cost Accounting
      2. 1.2 Objectives of Cost Accounting
      3. 1.3 Advantages of Cost Accounting
      4. 1.4 Cost Accounting and other Branches of Accounting
        1. 1.4.1 Cost Accounting and Management Accounting
      5. 1.5 Concepts of Cost
      6. 1.6 Classification of Costs
        1. 1.6.1 Classification on the Basis of Time
        2. 1.6.2 Classification by Nature or Elements
        3. 1.6.3 Overheads
        4. 1.6.4 Association with the Product (Costs in Their Relation to Product)
        5. 1.6.5 Accounting Period-Wise Classification of Costs
        6. 1.6.6 Behaviour-Wise Classification of Costs
        7. 1.6.7 Functional Classification of Costs
        8. 1.6.8 Costs for Planning and Control
        9. 1.6.9 Costs for Analytical and Decision-Making Purposes
        10. 1.6.10 Other Costs
      7. 1.7 Cost Objects
        1. 1.7.1 Cost Unit
        2. 1.7.2 Cost Centre
        3. 1.7.3 Profit Centre
      8. 1.8 Methods of Costing
        1. 1.8.1 Process Costing
        2. 1.8.2 Specific Order Costing
      9. 1.9 Techniques of Costing
      10. 1.10 Elements of Cost (1/2)
      11. 1.10 Elements of Cost (2/2)
        1. 1.10.1 Material
      12. 1.11 Installation of a Costing System
        1. 1.11.1 Practical Difficulties in Installing a Costing System
        2. 1.11.2 Measures to Overcome Difficulties
      13. 1.12 Role of a Cost Accountant in an Organization
      14. Key Terms
      15. Question Bank
        1. Objective Type Questions
        2. Short Answer Questions
        3. Essay Type Questions
        4. Exercises
  7. Part II: Elements of Cost
    1. Chapter 2: Direct Materials
      1. 2.1 Direct Materials
        1. 2.1.1 Meaning of Direct Material and Its Constituents
        2. 2.1.2 Indirect Materials
      2. 2.2 Purchasing Function
        1. 2.2.1 Objectives of Purchase Department
        2. 2.2.2 Methods of Purchasing
      3. 2.3 Purchase Procedure
        1. 2.3.1 Stage I: Indenting for Materials
        2. 2.3.2 Stage II: Issue of Tenders
        3. 2.3.3 Stage III: Receiving Quotations
        4. 2.3.4 Stage IV: Placing Purchase Orders
        5. 2.3.5 Stage V: Inspecting Stores Received
        6. 2.3.6 Stage VI: Receiving Stores
        7. 2.3.7 Stage VII: Passing Bills for Payment
      4. 2.4 Pricing of Stores Receipts (Accounting for Direct Material Cost)
        1. 2.4.1 Joint Purchase Costs
        2. 2.4.2 Storage and Issue Losses
      5. 2.5 Stores Functions
        1. 2.5.1 Main Objectives of Store Keeping
        2. 2.5.2 Duties and Functions of a Store Keeper
        3. 2.5.3 Centralized Stores
        4. 2.5.4 Imprest Stores
      6. 2.6 Classification and Codification of Materials
        1. 2.6.1 Some Important Methods of Codification of Materials
        2. 2.6.2 Advantages of Codification
      7. 2.7 Inventory Control (1/2)
      8. 2.7 Inventory Control (2/2)
        1. 2.7.1 Meaning of Inventory Control
        2. 2.7.2 Techniques of Inventory Control
        3. 2.7.3 Economic Order Quantity (EOQ)
        4. 2.7.4 Quantity Discounts and EOQ
      9. 2.8 Fixation of Stock Levels
        1. 2.8.1 Maximum Stock Level
        2. 2.8.2 Minimum Stock Level
        3. 2.8.3 Danger (or) Safety Level
        4. 2.8.4 Ordering Level (or) Re-Order Level
      10. 2.9 ABC Analysis
        1. 2.9.1 Steps Involved in ABC Analysis
      11. 2.10 VED Analysis
      12. 2.11 Pareto Analysis
      13. 2.12 FNSD Analysis
      14. 2.13 Two Bin System
      15. 2.14 Continuous Stock Taking
        1. 2.14.1 Advantages of Continuous Stock Taking
      16. 2.15 Perpetual Inventory System
        1. 2.15.1 Advantages of Perpetual Inventory System
      17. 2.16 Bin Card
      18. 2.17 Stores Ledger
        1. 2.17.1 Differences between Bin Card and Stores Ledger
      19. 2.18 Periodic Stock Taking System
      20. 2.19 Control Ratio—Inventory Turnover Ratio
        1. 2.19.1 Advantages of Inventory Turnover Ratio
      21. 2.20 Issue of Materials
        1. 2.20.1 Factors to Be Considered on Issue of Materials
        2. 2.20.2 Material Requisition Note
        3. 2.20.3 Bill of Materials
        4. 2.20.4 Material Return Note
        5. 2.20.5 Material Transfer Note
        6. 2.20.6 Kardex System
      22. 2.21 Pricing of Material Issues (1/3)
      23. 2.21 Pricing of Material Issues (2/3)
      24. 2.21 Pricing of Material Issues (3/3)
        1. 2.21.1 Specific Price Method
        2. 2.21.2 First in First Out Method
        3. 2.21.3 Last in First Out Method (LIFO)
        4. 2.21.4 Highest in First Out Method (HIFO)
        5. 2.21.5 Base Stock Method
        6. 2.21.6 Next-in-First Out Method
        7. 2.21.7 Simple Average Method
        8. 2.21.8 Periodic Simple Average Price Method
        9. 2.21.9 Weighted Average Price Method
        10. 2.21.10 Periodic Weighted Average Method
        11. 2.21.11 Moving Simple Average Price Method
        12. 2.21.12 Moving Weighted Average Price Method
        13. 2.21.13 Standard Cost Method (or) Standard Price Method
        14. 2.21.14 Inflated Price Method
        15. 2.21.15 Market Price Method
        16. 2.21.16 Selection of Material Pricing Method
      25. 2.22 Pricing of Material Returns
        1. 2.22.1 Pricing of Materials Returned to Vendor
        2. 2.22.2 Pricing of Materials Returned to Stock Room
      26. 2.23 Material Losses (1/3)
      27. 2.23 Material Losses (2/3)
      28. 2.23 Material Losses (3/3)
        1. 2.23.1 Scrap
        2. 2.23.2 Waste
        3. 2.23.3 Spoiled Work
        4. 2.23.4 Defective Work
      29. Summary
      30. Key Terms
      31. Question Bank (1/4)
      32. Question Bank (2/4)
      33. Question Bank (3/4)
      34. Question Bank (4/4)
        1. Objective Type Questions
        2. Short Answer Questions
        3. Essay Type Questions
        4. Exercises
    2. Chapter 3: Direct Labour and Direct Expenses
      1. 3.1 Meaning and Defi nition of Labour Cost
        1. 3.1.1 Direct Labour Cost
        2. 3.1.2 Indirect Labour Cost
      2. 3.2 Time-Recording
        1. 3.2.1 Time-Keeping
        2. 3.2.2 Time-Booking
      3. 3.3 Labour Time-Records
        1. 3.3.1 Clock-Card
        2. 3.3.2 Job Cards
        3. 3.3.3 Time-Ticket
        4. 3.3.4 Piece-Work Tickets
        5. 3.3.5 The Check or Disc Method
      4. 3.4 Accounting of Labour Cost (1/2)
      5. 3.4 Accounting of Labour Cost (2/2)
        1. 3.4.1 Monetary Benefits
        2. 3.4.2 Non-Monetary Benefits
        3. 3.4.3 Deferred Monetary Benefits or Terminal Benefits
        4. 3.4.4 Accounting of Labour Cost
      6. 3.5 Types of Workers
        1. 3.5.1 Casual Workers
        2. 3.5.2 Outworkers
        3. 3.5.3 Hired Workers
      7. 3.6 Work Study
        1. 3.6.1 Motion Study
        2. 3.6.2 Time Study
        3. 3.6.3 Method Study
      8. 3.7 Job Evaluation and Merit Rating
        1. 3.7.1 Job Evaluation
        2. 3.7.2 Methods of Job Evaluation
      9. 3.8 Labour Remuneration (1/2)
      10. 3.8 Labour Remuneration (2/2)
        1. 3.8.1 Principles of Labour Remuneration
        2. 3.8.2 Methods of Remuneration
        3. 3.8.3 Taylor’s Differential Piece-Rate Method
        4. 3.8.4 Merrick’s Differential Rate Scheme (or) Multiple Piece-Rate System
        5. 3.8.5 Gantt’s Task and Bonus Plan
        6. 3.8.6 Baum’s Differential Scheme (or) Milwakee Scheme
      11. 3.9 Premium Bonus Plans (1/2)
      12. 3.9 Premium Bonus Plans (2/2)
        1. 3.9.1 Emerson’s Efficiency System (or) Empiric System
        2. 3.9.2 Bedauxe Scheme or Points Scheme
        3. 3.9.3 Barth Scheme
        4. 3.9.4 Halsey Scheme
        5. 3.9.5 Halsey–Weir Scheme
        6. 3.9.6 Rowan Scheme
      13. 3.10 Group-Bonus Plans or Schemes
        1. 3.10.1 Priestman’s Production Bonus Plan
        2. 3.10.2 Rucker’s Plan
        3. 3.10.3 Scalon Plan
        4. 3.10.4 Towne’s Gain-Sharing Plan
        5. 3.10.5 Budgeted Expenses Bonus
      14. 3.11 Incentive Plans for Indirect Workers
        1. 3.11.1 Principles Governing the Incentive Plan for Indirect Workers are
        2. 3.11.2 Indirect Monetary Incentive Schemes
        3. 3.11.3 Monetary (Indirect) Schemes
      15. 3.12 Co-Partnership
        1. 3.12.1 Other Non-Monetary Incentive Schemes
      16. 3.13 Labour Turnover (1/2)
      17. 3.13 Labour Turnover (2/2)
        1. 3.13.1 Causes of Labour Turnover
        2. 3.13.2 Avoidable Causes
        3. 3.13.3 Unavoidable Causes
        4. 3.13.4 Effects of Labour Turnover
        5. 3.13.5 Measurement of Labour Turnover
        6. 3.13.6 Cost-Labour Turnover
      18. 3.14 Idle Time
        1. 3.14.1 Causes of Idle Time
        2. 3.14.2 The Grouping of Categories According to Functions May Further be Classified as Follows
        3. 3.14.3 Accounting Treatment
        4. 3.14.4 Control of Idle Time
      19. 3.15 Overtime and Shift Work (1/4)
      20. 3.15 Overtime and Shift Work (2/4)
      21. 3.15 Overtime and Shift Work (3/4)
      22. 3.15 Overtime and Shift Work (4/4)
        1. 3.15.1 Meaning of Overtime
        2. 3.15.2 Causes of Overtime
        3. 3.15.3 Disadvantages of Overtime
        4. 3.15.4 Control of Overtime
        5. 3.15.5 Accounting of Overtime
      23. 3.16 Direct Expenses
        1. 3.16.1 Meaning and Examples of Direct Expenses
        2. 3.16.2 Accounting Treatment of Direct Expenses
      24. Summary
      25. Key Terms
      26. Question Bank (1/3)
      27. Question Bank (2/3)
      28. Question Bank (3/3)
        1. Objective Type Questions
        2. Short Answer Questions
        3. Essay Questions
        4. Exercises
    3. Chapter 4: Overheads Classification, Distribution and Control
      1. 4.1 Meaning and Definition of Overheads
      2. 4.2 Classification of Overheads
        1. 4.2.1 Functional Classification
        2. 4.2.2 Element-Wise Classification
        3. 4.2.3 Behaviour-Wise Classification
      3. 4.3 Methods of Segregating Semi-Variable Costs into Fixed and Variable Costs
        1. 4.3.1 Method 1: (Technique 1) Levels of Output Compared with the Levels of Expenses Method
        2. 4.3.2 Method 2: High- and Low-Point Method: (or) Range Method
        3. 4.3.3 Method 3: Degree of Variability Method
        4. 4.3.4 Method 4: Scattergraph Method
        5. 4.3.5 Method 5: Method of Least Squares
      4. 4.4 Codification of Overheads
        1. 4.4.1 Numeric or Numerical or Straight-Number Coding
        2. 4.4.2 Alphabetical or Mnemonic Method
        3. 4.4.3 Alphabetical Cum Numerical Method
        4. 4.4.4 Decimal Method
        5. 4.4.5 Field Method
        6. 4.4.6 Advantages of Codification of Accounts
      5. 4.5 Distribution of Overheads (1/3)
      6. 4.5 Distribution of Overheads (2/3)
      7. 4.5 Distribution of Overheads (3/3)
        1. 4.5.1 Stage I: Allocation of Overheads
        2. 4.5.2 Stage II: Apportionment of Overheads
      8. 4.6 Absorption of Factory Overhead (1/3)
      9. 4.6 Absorption of Factory Overhead (2/3)
      10. 4.6 Absorption of Factory Overhead (3/3)
        1. 4.6.1 Methods of Overhead Absorption
      11. 4.7 Over Absorption or Under Absorption (1/3)
      12. 4.7 Over Absorption or Under Absorption (2/3)
      13. 4.7 Over Absorption or Under Absorption (3/3)
        1. 4.7.1 Reasons for Under-Absorption of Overheads
        2. 4.7.2 Reasons for Over-Absorption of Overheads
        3. 4.7.3 Accounting Treatment of Over- or Under-Absorbed Overheads
      14. 4.8 Treatment of Certain Specific Items of Overheads in Costing
        1. 4.8.1 Packing Expenses
        2. 4.8.2 R&D Costs
        3. 4.8.3 Interest on Capital
        4. 4.8.4 Capacity Levels
        5. 4.8.5 Capacity Costs
        6. 4.8.6 Capacity Ratios
      15. Summary
      16. Key Terms
      17. Question Bank
        1. Objective Questions
        2. Short Answer Questions
        3. Essay Questions
        4. Exercises
    4. Chapter 5: Administration Selling and Distribution Overheads
      1. 5.1 Administration Overheads
      2. 5.2 Accounting for Administration Overhead
        1. 5.2.1 Separate Cost Item
        2. 5.2.2 Apportionment of Administration Overhead to Manufacturing, Selling and Distribution Functions
        3. 5.2.3 Transferring Administration Overhead to Costing Profi t and Loss Account
      3. 5.3 Control of Administration Overhead
        1. 5.3.1 Last Year’s Actual Overheads
        2. 5.3.2 Budgeted Overheads
        3. 5.3.3 Standards
      4. 5.4 Selling and Distribution Overhead (1/2)
      5. 5.4 Selling and Distribution Overhead (2/2)
        1. 5.4.1 Selling Overheads
        2. 5.4.2 Distribution Overheads
        3. 5.4.3 Accounting for Selling and Distribution Overheads
        4. 5.4.4 Control of Selling and Distribution Overheads
        5. 5.4.5 Distinction between Production Overhead and Selling and Distribution Overhead
      6. Summary
      7. Question Bank
        1. Objective Questions
        2. Short Answer Questions
        3. Essay Questions
        4. Exercises
  8. Part III: Costing Methods
    1. Chapter 6: Activity-based Costing (Cost Allocation) System
      1. 6.1 Meaning and Definitions
      2. 6.2 Key Terms
        1. 6.2.1 Cost Objects
        2. 6.2.2 Activities
        3. 6.2.3 Cost Pool
        4. 6.2.4 Cost Drivers
        5. 6.2.5 Cost Hierarchies
      3. 6.3 Salient Features of Activity-based Costing System
      4. 6.4 Implementation of Activity-based Costing System
      5. 6.5 Comparing ABC System with Traditional Costing System
      6. 6.6 Limitations of ABC System
      7. Summary
      8. Key Terms
      9. Question Bank
        1. Objective Questions
        2. Short Answer Questions
        3. Essay Questions
    2. Chapter 7: Single Costing*
      1. 7.1 Unit Costing
      2. 7.2 Features of Output Costing
      3. 7.3 Analysis of Cost
      4. 7.4 Cost Sheet
        1. 7.4.1 Historical Cost Sheet
        2. 7.4.2 Estimated Cost Sheet
        3. 7.4.3 Uses of Cost Sheet
        4. 7.4.4 Exclusion of Certain Items from Cost Sheet
      5. 7.5 Production Account
      6. 7.6 Difference between Cost Sheet and Production Account
      7. 7.7 Preparation of a Cost Sheet
        1. 7.7.1 Stock
        2. 7.7.2 Computation of Profit
      8. 7.8 Treatment of Scrap
        1. 7.8.1 Treatment of Spoilage and Defective Work
      9. 7.9 Preparation of Production Account
      10. 7.10 For Professional Courses (1/2)
      11. 7.10 For Professional Courses (2/2)
      12. Summary
      13. Key Terms
      14. Question Bank
        1. Objective Type Questions
        2. Short Answer Questions
        3. Essay Type Questions
        4. Exercises
    3. Chapter 8: Job Costing and Batch Costing
      1. 8.1 Meaning and Definition of Job Costing
      2. 8.2 Features of Job Costing
      3. 8.3 Objectives of Job Costing
      4. 8.4 Procedure of Job Costing
        1. 8.4.1 Step 1: Pre-production Procedure
        2. 8.4.2 Step 2: Allotment of Job Number
        3. 8.4.3 Step 3: Issuance of Production Order
        4. 8.4.4 Step 4: Maintenance of Job Cost Card
        5. 8.4.5 Step 5: Collection of Costs
        6. 8.4.6 Step 6: Job Cost Analysis
        7. 8.4.7 Step 7: Job Cost Book-Keeping
        8. 8.4.8 Accounting for Work-in-Process
      5. 8.5 Batch Costing
        1. 8.5.1 Special Features of Batch Costing
        2. 8.5.2 Economic Batch Quantity (EBQ)
        3. 8.5.3 Economic Batch Quantity: Meaning and Method of Determination
        4. 8.5.4 Factors Determining EBQ
      6. 8.6 Back Flush Costing
        1. 8.6.1 Version 1 (Method 1)
        2. 8.6.2 Version 2 (Method 2)
        3. 8.6.3 Versions 3 (Method 3)
      7. Summary
      8. Key Terms
      9. Question Bank
        1. Objective-Type Questions
        2. Short Answer Questions
        3. Essay Questions
        4. Exercises
    4. Chapter 9: Contract Costing
      1. 9.1 Meaning and Definition of Contract Costing
      2. 9.2 Special Features of Contract Costing
      3. 9.3 Contract-Costing Procedure
        1. 9.3.1 Accounting for Material
        2. 9.3.2 Accounting for Labour
        3. 9.3.3 Accounting for the Use of Plant
        4. 9.3.4 Accounting for Overheads (Indirect Expenses)
        5. 9.3.5 Accounting for Sub-Contracts
      4. 9.4 Types of Contracts
        1. 9.4.1 Fixed-Price Contract with Escalation Clause
        2. 9.4.2 Cost-Plus Contracts
        3. 9.4.3 Advantages
        4. 9.4.4 Disadvantages
        5. 9.4.5 Incomplete Contracts and Profit
      5. 9.5 Guidelines to Assess Profit on Incomplete Contracts
      6. 9.6 Work-In-Progress
      7. 9.7 Accounting Treatment
      8. Summary
      9. Key Terms
      10. Question Bank (1/3)
      11. Question Bank (2/3)
      12. Question Bank (3/3)
        1. Objective Questions
        2. Short-Answer Questions
        3. Essay Questions
        4. Exercises
    5. Chapter 10: Process Costing
      1. 10.1 Meaning and Definition of Process Costing
      2. 10.2 Salient Features of Process Costing
        1. 10.2.1 Costs Flow From One Process to Another
        2. 10.2.2 Average Unit Cost Consumption
        3. 10.2.3 Not Distinguishable
        4. 10.2.4 Normal Spoilage
        5. 10.2.5 Equivalent Production Computation
        6. 10.2.6 Work-in-Progress (WIP) at Year End
        7. 10.2.7 Emergence of More Than One Product
      3. 10.3 Job Costing vs. Process Costing
      4. 10.4 Process Losses and Gains
        1. 10.4.1 Normal Process Loss
        2. 10.4.2 Abnormal Loss
        3. 10.4.3 Abnormal Gain
      5. 10.5 Elements of Manufacturing Cost (1/4)
      6. 10.5 Elements of Manufacturing Cost (2/4)
      7. 10.5 Elements of Manufacturing Cost (3/4)
      8. 10.5 Elements of Manufacturing Cost (4/4)
        1. 10.5.1 Direct Materials
        2. 10.5.2 Direct Labour
        3. 10.5.3 Direct Expenses
        4. 10.5.4 Overheads
      9. 10.6 Equivalent Production (1/3)
      10. 10.6 Equivalent Production (2/3)
      11. 10.6 Equivalent Production (3/3)
        1. 10.6.1 Procedure for the Determination of “Equivalent Production”
      12. 10.7 Joint Products and By-Products
        1. 10.7.1 Joint Products
        2. 10.7.2 By-Products
        3. 10.7.3 Co-Products
        4. 10.7.4 Differences Between Joint Products and By-Products
      13. 10.8 Accounting for Joint Product Costs (1/2)
      14. 10.8 Accounting for Joint Product Costs (2/2)
        1. 10.8.1 Average Unit Cost Method
        2. 10.8.2 Method 2: Physical Measure Method
        3. 10.8.3 Method 3: Weighted Output Method
        4. 10.8.4 Method 4: Standard Cost Method
        5. 10.8.5 Method 5: Market Value Method (Sales Value Method)
        6. 10.8.6 Method 6: Realizable Value Method
      15. 10.9 Accounting for By-Products
        1. 10.9.1 Cost Methods: The Following are the Cost Methods
        2. 10.9.2 Non-Cost Methods
      16. 10.10 Transfer Prices—Inter-Process Profits (1/4)
      17. 10.10 Transfer Prices—Inter-Process Profits (2/4)
      18. 10.10 Transfer Prices—Inter-Process Profits (3/4)
      19. 10.10 Transfer Prices—Inter-Process Profits (4/4)
        1. 10.10.1 Inter-Process Profits
        2. 10.10.2 Advantages
        3. 10.10.3 Disadvantages
      20. Summary
      21. Key Terms
      22. Question Bank
        1. Objective Questions
        2. Short Answer Questions
        3. Essay Questions
        4. Exercises
    6. Chapter 11: Operating Costing or Service Costing
      1. 11.1 Meaning of Operating Costing or Service Costing
      2. 11.2 Features of Service Costing
      3. 11.3 Users of Service Costing
      4. 11.4 Cost Unit
      5. 11.5 Cost Analysis
      6. 11.6 Transport Costing
        1. 11.6.1 Objectives of Motor Transport Costing
        2. 11.6.2 Collection of Cost Data
        3. 11.6.3 Records
      7. 11.7 Boiler House Costing
        1. 11.7.1 Boiler House Engaging in Steam Production
        2. 11.7.2 Collection of Cost Data
        3. 11.7.3 Cost Unit
      8. 11.8 Hospital Costing
      9. 11.9 Staff Canteen Costing
      10. 11.10 For Professional Courses (1/2)
      11. 11.10 For Professional Courses (2/2)
      12. 11.11 Operation Costing
      13. Summary
      14. Key Terms
      15. Question Bank
        1. Objective-Type Questions
        2. Short Answer Questions
        3. Essay Questions
        4. Exercises
    7. Chapter 12: Reconciliation of Cost and Financial Accounts
      1. 12.1 Need for Reconciliation
      2. 12.2 Causes of Difference
        1. 12.2.1 Items Shown Only in Financial Accounts
        2. 12.2.2 Items Included in Cost Accounts Only
        3. 12.2.3 Items Treated Differently in Cost Accounts and Financial Accounts
      3. 12.3 Procedure for Reconciliation of Cost and Financial Accounts (1/3)
      4. 12.3 Procedure for Reconciliation of Cost and Financial Accounts (2/3)
      5. 12.3 Procedure for Reconciliation of Cost and Financial Accounts (3/3)
        1. 12.3.1 Proforma: Reconciliation Statement
        2. 12.3.2 Memorandum Reconciliation Account
      6. Summary
      7. Key Terms
      8. Question Bank
        1. Objective-Type Questions
        2. Short Answer Questions
        3. Essay Questions
        4. Exercises
  9. Part IV: Cost Allocation and Accumulation
    1. Chapter 13: Integrated Accounting System
      1. 13.1 Meaning of Integrated Accounting System
      2. 13.2 Advantages of Integral System of Accounting
      3. 13.3 Disadvantages
      4. 13.4 Prerequisites for Successful Integrated System of Accounting
      5. 13.5 Accounting Treatment
      6. 13.6 The Third Entry Method
      7. 13.7 Interlocking vs. Integration of Cost and Financial Accounts (1/2)
      8. 13.7 Interlocking vs. Integration of Cost and Financial Accounts (2/2)
      9. Summary
      10. Key Terms
      11. Question Bank
        1. Objective-Type Questions
        2. Short Answer Questions
        3. Essay Questions
        4. Exercises
  10. Part V: Costing for Planning and Control
    1. Chapter 14: Budgetary Control
      1. 14.1 Meaning and Definition of Budget, Budgeting and Budgetary Control
      2. 14.2 Forecast and Budget
      3. 14.3 Objectives of Budgetary Control
      4. 14.4 Advantages of Budgetary Control
      5. 14.5 Limitations of Budgetary Control
      6. 14.6 Prerequisites for the Adoption of Budgetary Control System
      7. 14.7 Installation of Budgetary Control System
      8. 14.8 Budget Factor or Key Factor
      9. 14.9 Budget Reports
      10. 14.10 Classification of Budgets (1/3)
      11. 14.10 Classification of Budgets (2/3)
      12. 14.10 Classification of Budgets (3/3)
        1. 14.10.1 Functional and Master Budgets
      13. 14.11 Cash Budget (1/2)
      14. 14.11 Cash Budget (2/2)
        1. 14.11.1 Meaning and Definition
        2. 14.11.2 Preparation of Cash Budget
      15. 14.12 Master Budget
      16. 14.13 Classification of Budgets (1/2)
      17. 14.13 Classification of Budgets (2/2)
        1. 14.13.1 Fixed Budget
        2. 14.13.2 Flexible Budget
      18. 14.14 Control Ratios
      19. 14.15 Responsibility Accounting (1/2)
      20. 14.15 Responsibility Accounting (2/2)
        1. 14.15.1 Controllable and Uncontrollable Costs
        2. 14.15.2 Responsibility Centres vs. Cost Centres
      21. Summary
      22. Key Terms
      23. Question Bank (1/3)
      24. Question Bank (2/3)
      25. Question Bank (3/3)
        1. Objective Type Questions
        2. Short Answer Questions
        3. Essay Type Questions
        4. Exercises
    2. Chapter 15: Standard Costing and Variance Analysis
      1. 15.1 Meaning and Definition of Standard, Standard Cost and Standard Costing
      2. 15.2 Features of a Standard Costing System
      3. 15.3 Standard Costing and Budgetary Control
      4. 15.4 Standard Costs and Estimated Costs
      5. 15.5 Advantages of Standard Costing
      6. 15.6 Limitations of Standard Costing
      7. 15.7 Prerequisites for Installation of Standard-Costing System
      8. 15.8 Types of Standards
      9. 15.9 Kinds of Standards
        1. 15.9.1 Direct Material Cost Standards
        2. 15.9.2 Direct Wages Standards
        3. 15.9.3 Production Overhead Standards
      10. 15.10 Concept of Standard Hour: Variance Ratios
        1. 15.10.1 Standard Hour
        2. 15.10.2 Activity Ratio
        3. 15.10.3 Efficiency Ratio
        4. 15.10.4 Capacity Ratio
      11. 15.11 Analysis of Variances
        1. 15.11.1 Meaning and Definition of Variance Analysis
        2. 15.11.2 Variance Analysis
        3. 15.11.3 Variance Accounting
        4. 15.11.4 Principles of Variance Analysis
        5. 15.11.5 Chart of Variances
      12. 15.12 Direct Material Cost Variance Analysis (1/3)
      13. 15.12 Direct Material Cost Variance Analysis (2/3)
      14. 15.12 Direct Material Cost Variance Analysis (3/3)
        1. 15.12.1 Material-Price Variance
        2. 15.12.2 Material-Usage Variance (or) Quantity Variance
        3. 15.12.3 Material-Mix Variance
        4. 15.12.4 Material-Yield Variance
      15. 15.13 Direct Labour-Cost Variance Analysis (1/2)
      16. 15.13 Direct Labour-Cost Variance Analysis (2/2)
        1. 15.13.1 Direct Labour Cost Variance
        2. 15.13.2 Direct Labour Rate Variance
        3. 15.13.3 Direct Labour Time or Efficiency Variance
        4. 15.13.4 Direct-Labour Idle-Time Variance
        5. 15.13.5 Direct-Labour-Mix Variance (Group Composition)
        6. 15.13.6 Direct-Labour-Yield Variance
      17. 15.14 Overhead Variances
        1. 15.14.1 Variable-Overhead Variance Analysis
        2. 15.14.2 Variable-Overhead-Effi ciency Variance
      18. 15.15 Fixed Overhead Variance Analysis (1/2)
      19. 15.15 Fixed Overhead Variance Analysis (2/2)
        1. 15.15.1 Fixed Overhead Variance
        2. 15.15.2 Fixed Overhead-Expenditure Variance
        3. 15.15.3 Volume Variance
        4. 15.15.4 Fixed Overhead-Capacity Variance
        5. 15.15.5 Fixed Overhead Calendar Variance
        6. 15.15.6 Fixed Overhead-Efficiency Variance
      20. 15.16 Revision Variance
      21. 15.17 Sales Variances (1/2)
      22. 15.17 Sales Variances (2/2)
        1. 15.17.1 Sales Variances with Reference to Profit Method
        2. 15.17.2 (a) Sales-Price Variance
        3. 15.17.3 Sales-Volume Variance
        4. 15.17.4 Sales-Mix Variance
        5. 15.17.5 Sales-Quantity Variance
      23. 15.18 Sales Variances—(Based on Turnover)—Turnover Method
        1. 15.18.1 Sales Value Variance
        2. 15.18.2 Sales-Quantity Variance
      24. 15.19 Reporting of Variances to Management
        1. 15.19.1 Reporting of Variances to Management
      25. 15.20 Treatment of Variances in Cost Accounts (1/2)
      26. 15.20 Treatment of Variances in Cost Accounts (2/2)
      27. Summary
      28. Key Terms
      29. Question Bank
        1. Objective Type Questions
        2. Short Answer Questions
        3. Essay Type Questions
        4. Exercises
        5. Exercises
  11. Part VI: Costing for Decision and Control Purposes
    1. Chapter 16: Marginal Costing
      1. 16.1 Marginal Cost
        1. 16.1.1 Concept of Marginal Cost—View of Economists and Accountants
      2. 16.2 Absorption Costing
        1. 16.2.1 Salient Features of “Absorption Costing”
      3. 16.3 Marginal Costing
        1. 16.3.1 Salient Features of Marginal Costing
      4. 16.4 Contribution of Gross Margin
        1. 16.4.1 Meaning and Method of Computing Contribution
      5. 16.5 Ascertainment of Income (Profit) under Marginal-Costing and Absorption-Costing Techniques
        1. 16.5.1 Marginal Costing
        2. 16.5.2 Absorption Costing
      6. 16.6 Segregation of Semi-Variable Overheads (1/2)
      7. 16.6 Segregation of Semi-Variable Overheads (2/2)
        1. 16.6.1 Method 1: Levels of Output Compared to Levels of Expenses
        2. 16.6.2 Method 2: Range Method or “High and Low” Method
        3. 16.6.3 Method 3: Degree of Variability Method
        4. 16.6.4 Method 4: Equation Method
        5. 16.6.5 Method 5: Method of Least Squares
        6. 16.6.6 Method 6: Scattergraph Method
      8. 16.7 Advantages of Marginal Costing
      9. 16.8 Disadvantages of Marginal Costing
      10. 16.9 Managerial Applications of Marginal Costing (1/4)
      11. 16.9 Managerial Applications of Marginal Costing (2/4)
      12. 16.9 Managerial Applications of Marginal Costing (3/4)
      13. 16.9 Managerial Applications of Marginal Costing (4/4)
        1. 16.9.1 Optimizing the Product Mix
        2. 16.9.2 Problems of Limiting Factor or Key Factor
        3. 16.9.3 Make or Buy Decisions
        4. 16.9.4 Opportunity Cost*
        5. 16.9.5 Profit Planning
        6. 16.9.6 Shut-Down Decisions
        7. 16.9.8 Product Pricing—Fixation of Selling Prices
        8. 16.9.9 Decision on Manufacturing Methods
        9. 16.9.10 Maintaining a Desired Level of Profit
        10. 16.9.11 Production and Market-Expansion Decisions
        11. 16.9.12 Offering Quotations
      14. 16.10 Special Circumstances in which the Selling Price at or Below the Marginal Cost is Justified (1/3)
      15. 16.10 Special Circumstances in which the Selling Price at or Below the Marginal Cost is Justified (2/3)
      16. 16.10 Special Circumstances in which the Selling Price at or Below the Marginal Cost is Justified (3/3)
      17. Chapter Review
      18. Key Terms
      19. References
      20. Formulae Pertaining to Marginal Costing
      21. Question Bank (1/2)
      22. Question Bank (2/2)
        1. Objective Type Questions
        2. Short Answer Questions
        3. Essay Type Questions
        4. Exercises
    2. Chapter 17: Break-Even and Cost–Volume–Profi t Analysis
      1. 17.1 Features and Formulae for Profit–Volume Ratio
        1. 17.1.1 Ways to Increase P/ V Ratio
        2. 17.1.2 Results of Analysis (After Taking into Account the Various Limiting Factors)
      2. 17.2 Cost–Volume–Profit Analysis
        1. 17.2.1 Definition of CVP Analysis
      3. 17.3 Objectives (Utility) of CVP Analysis
      4. 17.4 Break-Even Analysis
        1. 17.4.1 Assumptions Underlying Break-Even Analysis
        2. 17.4.2 Break-Even Point
      5. 17.5 Concept of Some Important Terms (1/2)
      6. 17.5 Concept of Some Important Terms (2/2)
        1. 17.5.1 Cost BEP
        2. 17.5.2 Cash BEP
        3. 17.5.3 Composite BEP
      7. 17.6 Profit-Path Graph
      8. 17.7 Margin of Safety
      9. 17.8 Angle of Incidence
        1. 17.8.1 Meaning and Significance
      10. 17.9 Impact of Variable Cost, Fixed Cost and Selling Price on Contribution, P/ V Ratio, BEP and Margin of Safety
      11. 17.10 Applications of CVP Analysis
      12. 17.11 Models (1/4)
      13. 17.11 Models (2/4)
      14. 17.11 Models (3/4)
      15. 17.11 Models (4/4)
      16. 17.12 For Professional Course Students (1/2)
      17. 17.12 For Professional Course Students (2/2)
      18. 17.13 Limitations of Break-Even Analysis
      19. 17.14 Uses of CVP Analysis
      20. Summary
      21. Key Terms
      22. Bibliography
      23. Formulae
      24. Question Bank (1/2)
      25. Question Bank (2/2)
        1. Objective Type Questions
        2. Short Answer Questions
        3. Essay Questions
        4. Exercises
    3. Chapter 18: Differential Cost Analysis
      1. 18.1 Meaning and Definition of Differential Cost Analysis
      2. 18.2 Salient Features of Differential Cost Analysis
      3. 18.3 Marginal Costing vs. Differential Cost Analysis
        1. 18.3.1 Similarities between Marginal Costing and Differential Costing
        2. 18.3.2 Differences Between Marginal Costing and Diff erential Costing
      4. 18.4 Applications of Differential Cost Analysis or Utilities of Differential Cost Analysis
      5. 18.5 Opportunity Costing
        1. 18.5.1 Features of Opportunity Costs
      6. Summary
      7. Key Terms
      8. Bibliography
      9. Question Bank
        1. Objective Questions
        2. Short Answer Questions
        3. Essay Questions
        4. Exercises

Product information

  • Title: Cost Accounting, Ist Edition
  • Author(s): Rajasekaran
  • Release date: April 2024
  • Publisher(s): Pearson India
  • ISBN: 9781299446212