Paper 2 Cost and Management Accounting Syllabus......................................... 2.2 Line Chart Showing Relative Importance of Chapters...... 2.6 Table Showing Importance of Chapter on the Basis of Marks 2.7 Formula Table.................................... 2.8 Study Material Based Contents 1 Lesson 1 Introduction to Cost and Management Accounting 2.19 2 Lesson 2 Material Cost... 2.65 3 Lesson 3 Labour Cost... 2.131 4 Lesson 4 Direct Expenses and Overheads... 2.174 5 Lesson 5 Activity Based Costing (ABC)... 2.208 6 Lesson 6 Cost Records - (Integrated & Non-Integrated Accounts and Reconciliation of Cost)... 2.225 7 Lesson 7 Costing Systems - I (Unit or Output Costing, Cost Sheet, Job Costing, Batch Costing, Contract Costing) 2.248 8 Lesson 7 Costing Systems - II (Process Costing)... 2.279 9 Lesson 7 Costing Systems - III (Service Costing / Operating Costing)... 2.299 10 Lesson 8 Marginal Costing... 2.313 11 Lesson 9 Standard Costing and Variance Analysis... 2.356 12 Lesson 10 Budget, Budgeting and Budgetary Control... 2.390 13 Lesson 11 Cost Accounting Records and Cost Audit... 2.421 14 Lesson 12 Analysis and Interpretation of Financial Statements (Ratio Analysis, Cash Flow Statement, Fund Flow Statement... 2.442 Question Paper of December, 2014... 2.490 Question Paper of June, 2015... 2.511 2.1
Syllabus Paper 2 Cost and Management Accounting (100 marks) Level of knowledge: Working knowledge. Objective: To acquire knowledge and understanding of the concepts, techniques and practices of cost and management accounting and to develop skills for decision making. Detailed Contents 1. Introduction to Cost and Management Accounting Cost Accounting: Evolution, Meaning, Objectives and Scope Concepts of Costs, Classifications and Elements of Cost Cost Centre and Cost Unit Methods and Techniques of Costing Cost Accounting Standards Installation of a Costing System Practical Difficulties in Installing a Costing System Role of Cost Accountant in Decision Making Management Accounting: Evolution, Meaning, Objectives and Scope Tools and Techniques of Management Accounting Relationship of Cost Accounting, Financial Accounting, Management Accounting and Financial Management Conflicts in Profit versus Value Maximisation Principle Role of Management Accountant in Decision Making 2. Material Cost Materials Control: Concept and Techniques Procurement Procedures and Documentation: Methods of Purchasing; Procedure of Purchases, Stores and Issue of Material; Stock Verification Methods of Pricing of Material: FIFO, LIFO, Simple Average, Weighted Average Accounting and Control of Material Losses, Wastage, Scrap, 2.2
Spoilage and Defectives Inventory Management: Techniques of fixing of minimum, maximum and reorder levels, Economic Order Quantity, ABC Analysis; Stock Verification and Perpetual Inventory 3. Labour Cost Meaning and Classification of Labour Costs Accounting and Control of Labour Costs Time Keeping and Time Booking Attendance and Payroll Procedures, Time Recording, Overtime and Idle Time Labour turnover and Remedial Measures Efficiency Rating Procedures; Remuneration Systems and Incentive Schemes 4. Direct Expenses and Overheads Direct Expenses: Meaning, Nature, Collection, Classification and Treatment of Direct and Indirect Expenses Overheads: Meaning, Nature, Collection and Classification Functional Analysis: Factory, Administration, Selling, Distribution, Research and Development Behavioural Analysis: Fixed, Variable, Semi variable and Step Cost Allocation, Apportionment, Absorption and Control of Overheads Preparation of Cost Sheet 5. Activity Based Costing (ABC) Meaning, Importance, Characteristics Elements and Steps involved ABC vs. Traditional Costing Uses and Limitations 6. Cost Records Cost Ledgers - Integrated Accounts and Non-Integrated Accounts Reconciliation of Cost and Financial Accounts 7. Costing Systems Unit and Output Costing Job Costing: Job Cost Cards, Collecting Direct Costs, Allocation of Overheads and its Applications 2.3
Batch Costing: Features and Applications Contract Costing: Features, Distinction between Job and Contract Costing, Progress Payments, Retention Money, Escalation Clause, Contract Accounts, Accounting for Material, Accounting for Plant Used in a Contract, Contract Profit and Accounting Entries Process Costing: Features, Applications and Types of Process Costing, Process Loss, Abnormal Gains and Losses, Equivalent Units, Inter-Process Profit, Joint Products, By-Products and Accounting Service Costing: Features and Applications, Unit Costing and Multiple Costing, Application, Identification of Cost Unit and Cost Determination and Control 8. Marginal Costing Meaning, Advantages, Limitations and Applications Breakeven Analysis Cost-Volume Profit Analysis P/V Ratio and its Significance Margin of Safety Absorption Costing: System of Profit Reporting and Stock Valuation Difference between Marginal Costing and Absorption Costing Income Measurement under Marginal Costing and Absorption Costing 9. Standard Costing Definition, Significance and Applications Various Types of Standards Installation of Standard Costing System-for Material, Labour, and Overhead Variance Analysis for Materials, Labour and Overheads and Accounting Treatment of Variances Benchmarking for Setting of Standards Variance Reporting to Management 10. Budget, Budgeting and Budgetary Control Budget Concept, Manual 2.4
Fixed and Flexible Budgets Preparation and Monitoring of Various Types of Budgets Budgetary Control System: Advantages, Limitations and Installation Zero Base Budgeting Programme and Performance Budgeting 11. Cost Accounting Records and Cost Audit Nature and Scope of Cost Audit Companies (Cost Records and Cost Audit) Rules, 2014 Purpose, Scope and Advantages of Cost Audit Implementing Authorities of Cost Audit Cost Audit Techniques and Programmes Cost Audit Report Cost Auditor - Appointment, Rights and Responsibilities 12. Analysis and Interpretation of Financial Statements Financial Statements: Nature, Attributes, Objectives, Importance, Limitations Recent Trends in presenting Financial Statements Financial Statements Analysis: Types, Methods, Objectives, Limitations Ratio Analysis: Accounting, Uses, Classification, Advantages, Limitations Cash Flow Statement Fund Flow Statement Difference between Cash Flow and Fund Flow Statement Management Reporting 2.5
Line Chart Page 2.6
Chap. No. Chapter Name Table Showing Importance of Chapter on the Basis of Marks Years 10 Dec. 11 June 11 Dec. 12 June 12 Dec. 13 June 13 Dec. 14 June 14 Dec. 15 June Total Ave. 1 Introduction to Cost and Management... 2 1 3 1 2 8 12 29 2.9 2 Material Cost 1 1 1 5 1 2 8 8 27 2.7 3 Labour Cost 3 1 2 8 10 24 2.4 4 Direct Expenses and Overheads 1 1 1 1 2 1 11 7 25 2.5 5 Activity Based Costing (ABC) 2 2 4 0.4 6 Cost Record (Integrated & Non-... 5 3 8 0.8 7 Costing Systems - I (Unit or Output... 1 13 9 23 2.3 8 Costing Systems - II (Process Costing)... 1 5 3 9 0.9 9 Costing Systems - III (Service Costing /... 5 1 6 0.6 10 Marginal Costing 1 3 1 1 4 11 11 32 3.2 11 Standard Costing and Variance Analysis 9 7 16 1.6 12 Budget, Budgeting and Budgetary Control 2 2 1 2 5 8 20 2.0 13 Cost Accounting Records and Cost Audit 1 2 3 0.3 14 Analysis and Interpretation of Financial... 1 1 1 1 9 17 30 3.0 Formula Table
2.8 O Model Solved Scanner CSEP M-I Paper 2 (New Syllabus) Material Levels Maximum Level = Chapter- 2 Re-order Level + Re-order Quantity - (Minimum Consumption x Minimum Re-order Period) Minimum Level = Re-order Level - (Average Rate of Consumption x Average Time required to obtain fresh delivery) Average Stock Level = ½ x (Maximum Level + Minimum Level) or Minimum Level + ½ Re-order Quantity Economic Ordering Quantity E = Where: E = Economic ordering quantity U = Quantity (units) purchased or used in a year P = Cost of placing an order S = Annual cost of storage of one unit Turnover Ratios Stock Turnover = Labour Turnover (i) Separation Rate Method = (ii) Replacement Method = (iii) Flux Rate Method = Chapter- 3 or 2.8
Formula Table O 2.9 (iv) Equivalent Annual Rate = Incentive Plans (i) Halsey Plan: Total Earnings = Time taken x Hourly Rate + (Time saved x Rate x 50%) (ii) Rowan Plan: Total Earnings = Time taken x Hourly Rate + Bonus* (iii) *Bonus = x Time taken x Hourly Rate Barth Scheme = Hourly Rate x Factory Overhead Rate Chapter- 4 (i) Direct Material Cost Method = x (ii) Direct Labour Cost Method = x (iii) Prime Cost Method = (iv) Machine Hour Rate Method = (v) Labour Hour Rate Method = Office Overhead Rate (i) As a Percentage to Factory Cost (ii) As a Percentage to Factory Overheads = =
Model Solved Scanner CS Executive Programme Module-I New Syllabus Paper-2 Cost and Management Accounting Green Edition (Jul-2015) 50% OFF Publisher : Shuchita Prakashan ISBN : 9789351591641 Author : Prof. Arun Kumar & CS (Dr.) Himanshu Srivastava Type the URL : http://www.kopykitab.com/product/5505 Get this ebook