Methods And Techniques Of Cost Accounting

Author : Prakash B. Yaragol
Publisher :
ISBN 13 :
Total Pages : 225 pages
Book Rating : 4.6/5 (223 download)

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Download or read book Cost Management-Theory and Practice written by Prakash B. Yaragol and published by . This book was released on 2020-03-07 with total page 225 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book captures an entire spectrum of Cost Management precisely and is organized into eight chapters described below.Chapter-1 An Overview of Cost Management: The purpose of this chapter is to familiarize the reader with the basic aspects of cost management such as costing, cost accounting, cost management, difference between financial and cost accounting, classification of cost, objectives, various methods and techniques of cost accounting, preparation of cost sheet including job and batch cost sheet. Chapter-2 Process Costing: This chapter covers preparation of process account, process losses and gains and accounting treatment of process losses and gains, accounting treatment of joint and by-products, valuation of work-in-process.Chapter-3 Overhead Distribution: This chapter covers classification of overheads, apportionment of common overheads among various cost centers, re-apportionment of overheads under various methods with their merits and demerits. It also covers absorption of overheads under different methods, overhead variance and different methods of accounting treatment of overhead variance. Chapter-4 Marginal Costing: The purpose of this chapter is to familiarize the reader with various aspects of marginal costing and its applications. Marginal costing as an improvement over absorption costing, Various marginal costing techniques such as contribution margin, P/V ratio, breakeven point, P/V Graph and margin of safety are discussed and illustrated. Applications of marginal costing technique in various managerial decisions such as limiting factor analysis, make/buy decision, decision on alternative methods of production, shut-down decision, accept/reject decision and optimum product/sales mix are discussed and illustrated. It also discusses point of indifference cost, cash BEP, composite BEP and differential cost analysis.Chapter-5 Budgetary Control: This chapter covers types of budgets including Zero-based budget, objectives, merits and demerits of budgets, preparation of different operational budgets and flexible budgets. Chapter-6 Standard Costing and Variance Analysis: This chapter covers standard costing and its objectives, advantages and disadvantages, steps in standard costing and variance analysis and various types of variances. Chapter-7 Activity Based Costing (ABC):. This chapter covers important steps involved in implementation of ABC, cost activities, types of activities, cost drivers, activity cost pool and its different types, pre-requisites for effective implementation of ABC and merits and demerits of ABC.Chapter-8 Misc. Topics: The purpose of this chapter is to familiarize the reader with various allied aspects of cost management such as management reporting, segmental reporting, cost control and cost reduction, cost and management audit, target costing, life cycle costing and Balanced Score Card.The book has grown out of lecture notes and other materials prepared and updated for the MBA degree of various universities for the last few years. Hence, the book is sure to help the students of MBA, M.Com, MFA, MIB, BBM, B.Com. etc. who wish to study Cost Management as a part of their specialization in the area of finance. Readers are requested to mail the suggestions or corrections if any in the book to [email protected]