Introduction to Cost Management-
Cost Accounting to Cost Management- Elements of costsClassification of costs-Methods of costing-Cost Management Tools- A Strategic View to Cost Management- Preparation of a cost sheet. (Problems on cost sheet).
Overheads:
Classification and Collection, Difference between Cost Allocation and Cost Apportionment, (Full-fledged Problems on Primary and secondary distribution, Simultaneous equations, Absorption of Overhead, Theory on Under and Over absorption of Overhead). Demerits of Traditional Costing, Activity Based Costing, Cost Drivers, Cost Analysis Under ABC (Unit level, Batch Level and Product Sustaining Activities), Benefits and weaknesses of ABC. (Theory & Problems).
Marginal Costing –
Nature and Scope- Applications-Break even charts and Point, Decision-making (all types with full problems) Differential Cost Analysis, Advantages and Disadvantages of Marginal Costing Process Costing: introduction to Process Costing, Cost accumulation in process costing (Problems).
Budgetary Control-
Objectives of Budgetary control, Functional Budgets, Master Budgets, Key Factor Problems on Production Budgets and Flexible Budgets. Standard Costing:- Comparison with Budgetary control, analysis of Variances, Simple Problems on Material and Labour variances only (Problems).
Cost Audit & Reporting to Management-
objectives and advantages of Cost Audit, Cost Audit report. Management Audit- Objectives and Scope. Reporting to Management – Purpose of reportingRequisites of a good report, Classifications of Report, Segment reporting, Cost Reduction and Cost Control, Target Costing – its Principles, Balanced Scorecard: Features and Purpose (theory only).
Responsibility Centers:
Revenue and Expense Centers Responsibility Centers, Revenue Centers. Transfer Pricing – Meaning, Principles of Transfer Pricing, Methods of Transfer of Pricing expense Centers, Administrative Centers. Cost Management for Specific Sectors – Gold, Agriculture, IT sector, Phrama and others (theory only).
Assessment Details (both CIE and SEE)
Continuous Internal Evaluation:
There shall be a maximum of 50 CIE Marks. A candidate shall obtain not less than 50% of the maximum marks prescribed for the CIE.
CIE Marks shall be based on:
a) Tests (for 25Marks) and
b) Assignments, presentations, Quiz, Simulation, Experimentation, Mini project, oral examination, field work and class participation etc., (for 25 Marks) conducted in the respective course. Course instructors are given autonomy in choosing a few of the above based on the subject relevance and should maintain necessary supporting documents for same.
Semester End Examination:
The SEE question paper will be set for 100 marks and the marks scored will be proportionately reduced to 50.
Suggested Learning Resources:
Books
1. Cost Accounting (2e) by M.Y. Khan and P.K. Jain (2017). McGraw Hill Education.
2. Management Control Systems (4e) by Kenneth Merchant and Wim Van Der Stede. Pearson Education (2019).
3. A Text book of Cost and Management Accounting: Arora M. N, 11th Edition, Vikas.
4. Managerial Accounting: James Jiambalvo, 4 th Edition, Wiley India Pvt. Ltd.
5. Cost Accounting: Jawaharlal & Seema Srivastava, 4th Edition, TMH
Course outcome
At the end of the course the student will be able to :
CO1 Understand the goals and strategies of business units. L2
CO2 Determine standard costing and variance analysis cost control in Business decision making, L5
CO3 Applications of Management accounting and control systems in Corporate. L3
CO4 Critically evaluate all traditional and non-traditional costing methods such as absorption costing; marginal costing and activity based costing. L5