Fundamentals of Cost Accounting

ABOUT THE COURSE: The subject, Cost Accounting, introduces the fundamental concepts of cost, cost accounting and costing and carefully builds up a detail understanding of various elements of costs and the techniques for ascertainment, controlling and monitoring of costs. It also highlights different industry specific costing methods to accumulate total costs with due compliance of the Cost Accounting Standards that provide the framework for such tasks. The subject also focuses on the details of alternative cost bookkeeping processes, integration or reconciliation with financial accounting system used in organisations. It enumerates various techniques of costing to facilitate managerial decision making on cost optimisation, profit planning and control.INTENDED AUDIENCE: Anyone, who is interested to enrich his/ her knowledge in Cost and Management AccountancyPREREQUISITES: Higher Secondary completedINDUSTRY SUPPORT: Recognised by the ICMAI

Week 1:Understanding Basics of Cost Accounting

• Introduction to Cost Accounting
• Cost Concepts, Classification of Costs

Week 2:Elements of Cost

• Accounting for Material Cost
• Accounting for Employee (Labour) Cost

Week 3:Overhead Accounting and Cost Sheet

• Overhead Accounting
• Preparation of Cost Sheet

Week 4:Methods of Costing - I

• Job Costing
• Service/Operating Costing

Week 5:Methods of Costing - II

• Contract Costing
• Process Costing

Week 6:Marginal Costing

• Cost-Volume-Profit (CVP) Analysis, BEP Analysis
• Applications of Contribution Analysis in Decision Making

Week 7:Budgetary Control

• Introduction to Budgetary Control
• Cash Budget & Flexible Budget

Week 8:Standard Costing and Variance Analysis

• Standard Costing
• Variance Analysis