Introduction to Cost Management- Cost Accounting to Cost Management- Elements of costs-Classification of costs-Methods of costing-Cost Management Tools- A Strategic View to CostManagement- Preparation of a cost sheet
Overheads, Classification and Collection, Difference between Cost Allocation and CostApportionment, (Full fledged Problems on Primary and secondary distribution, Simultaneousequations, Absorption of Overhead, Theory on Under and Over absorption of Overhead)
Marginal Costing – Nature and Scope- Applications-Break even charts and Point, DecisionMaking (all types with full problems) Differential Cost Analysis, Advantages and Disadvantagesof Marginal Costing
Budgetary Control:- Objectives of Budgetary control, Functional Budgets, Master Budgets, KeyFactor Problems on Production Budgets and Flexible Budgets.Standard Costing:- Comparison with Budgetary control, analysis of Variances, Simple Problemson Material and Labour variances only .
Demerits of Traditional Costing, Activity Based Costing, Cost Drivers, Cost Analysis UnderABC ( Unit level, Batch Level and Product Sustaining Activities), Benefits and weaknesses ofABC, Simple Problems under ABC.
Cost Audit,-objectives,, Advantages, Areas and Scope of Cost Audit , Cost Audit in India --Practical—Read the contents of the report of Cost Audit and the annexure to the Cost Auditreport.Management Audit- Aims and the objectives, Scope of Management Audit.
Reporting to Management – Purpose of reporting-Requisites of a good report,, Classifications ofReport, Segment reporting, Applicability of Accounting Standard 17, Objectives, Users ofSegment reporting. Cost Reduction, and Cost Control, Target Costing – its Principles, BalancedScorecard as a performance measure- Features- Purpose, Reasons for use of Balanced scorecard.Proportion of problems to theory 50%