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Cost and Management Accounting syllabus

ACC 2029 units · 41 topicsAcademic year 2083/84
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Cost and Management Accounting

9 units

1. Conceptual Foundation (2 LHs)

  1. Cost accounting and management accounting
    1. Cost accounting and management accounting
  2. Meaning, objectives, advantages and limitations of cost and management accounting
    1. Meaning, objectives, advantages and limitations of cost and management accounting
  3. Limitations of financial accounting
    1. Limitations of financial accounting
  4. Similarities and dissimilarities in financial, cost and management accounting
    1. Similarities and dissimilarities in financial, cost and management accounting

2. Cost Concept and Cost Classification (4 LHs)

  1. Concept, importance and classification of cost
    1. Concept, importance and classification of cost: basic concept of cost and expense
  2. Cost classification
    1. cost classification: based on function, behavior, controllability, decision making, time of recording, planning and control, period and product cost
  3. Cost segregation and estimation
    1. Cost segregation and estimation: concept and methods of cost segregation: i) Two point method ii) Least square method and iii) Estimation of cost

3. Accounting for Materials (4 LHs)

  1. Materials/Inventory
    1. Materials/Inventory: Concept, reasons and objectives for holding material/inventory. Inventory control: Meaning, importance and techniques
  2. Economic order quantity
    1. Economic order quantity: concept, techniques, formula and trial & error approaches-considering discount under certainty condition
  3. Re-order level
    1. Re-order level, maximum stock level, minimum stock level, average stock level, danger level and safety stock
  4. Concept and techniques of perpetual inventory system
    1. Concept and techniques of perpetual inventory system
  5. Stock control through ABC analysis and just in time inventory
    1. Stock control through ABC analysis and just in time inventory: concept, advantages and limitations.

4. Accounting for Labour Cost (3 LHs)

  1. Labour Cost
    1. Labour Cost: Concept and need for control of labour cost
  2. Remuneration without premium plan
    1. Remuneration without premium plan: Features of good remuneration system, time and piece wage system
  3. Remuneration with premium Plan
    1. Remuneration with premium Plan: Features of premium plan, premium bonus scheme- Halsey and Rowan Plan, Taylor's Differential Piece Rate, Gant's Task and Bonus Plan.

5. Accounting for Overhead Cost (5 LHs)

  1. Overhead Cost
    1. Overhead Cost: Meaning, features, importance and classification
  2. Apportionment and absorption of overhead
    1. Apportionment and absorption of overhead: meaning and importance
  3. Apportionment and absorption of overhead cost based on volume
    1. apportionment and absorption of overhead cost based on volume, direct labour hours and direct machine hours.

6. Costing in Service Sectors (6 LHs)

  1. Service Costing
    1. Service Costing: Concept, features and scope of service costing
  2. Preparation of cost sheet for transport service for passenger
    1. Preparation of cost sheet for transport service for passenger, hospital, hotel and restaurant services, limitations of service costing.

7. Accounting for Profit Planning (8 LHs)

  1. Variable Costing and Absorption Costing
    1. Variable Costing and Absorption Costing: Concept, features, importance and preparation of income statement under variable costing and absorption costing
  2. Over and under absorption of fixed manufacturing overhead and adjustment
    1. Over and under absorption of fixed manufacturing overhead and adjustment
  3. Limitations of variable costing and absorption costing
    1. Limitations of variable costing and absorption costing
  4. Reconciliation of profit or loss between absorption and variable costing techniques…
    1. Reconciliation of profit or loss between absorption and variable costing techniques showing the causes of differences. Cost Volume Profit Analysis: Meaning, importance
  5. Assumptions and limitations of CVP analysis
    1. assumptions and limitations of CVP analysis
  6. Contribution margin or ratio, profit volume ratio
    1. Contribution margin or ratio, profit volume ratio
  7. Break even analysis using contribution margin, algebraic approaches
    1. Break even analysis using contribution margin, algebraic approaches
  8. Break-even-analysis
    1. Break-even-analysis: under various situations: changes on selling price, fixed cost, variable cost, multi-products situations, margin of safety and determination of selling price to realize desired profit
  9. Advantages and limitations of break even analysis
    1. Advantages and limitations of break even analysis.

8. Cost Accounting for Planning and Control (12 LHs)

  1. Standard Costing
    1. Standard Costing: Concept of standard cost and standard costing, features, application, advantages and limitations
  2. Difference between standard and budget. Variance Analysis
    1. Difference between standard and budget. Variance Analysis
  3. Material variances
    1. Material variances: Concept and calculation of cost, price, usage, mix and yield variances
  4. Labour variances
    1. Labour variances: Concept and calculation of cost, efficiency, rate, mix, idle time and yield variances.
  5. Overhead Cost Variance
    1. Overhead Cost Variance: Concept and calculation of capacity, efficiency and spending variances. Budget: concept, features and importance of budget
  6. Types of budget
    1. Types of budget: sales budget, production budget, material budget & merchandize purchase budget, labour budget, manufacturing overhead budget, cost of goods manufactured budget, selling/distribution & administrative expenses budget and cost of goods sold budget.
  7. Fixed and Flexible Budgeting
    1. Fixed and Flexible Budgeting: Concept and importance of fixed and flexible budgets
  8. Difference between fixed and flexible budgets
    1. Difference between fixed and flexible budgets
  9. Flexible budgeting for overhead cost control on activity levels and budget allowance for…
    1. Flexible budgeting for overhead cost control on activity levels and budget allowance for actual level attained.

9. Short term Decision Making (4 LHs)

  1. Concept, need and objectives of short term decisions in business
    1. Concept, need and objectives of short term decisions in business
  2. Cost concept in decision making
    1. Cost concept in decision making: Relevant and irrelevant costs, avoidable and unavoidable costs, opportunity cost
  3. Types of decisions
    1. Types of decisions: Drop or Continue, Special Offer/Order and Make or Buy