Unit1
Costing – meaning – objectives – cost – costing and cost accounting – advantages and disadvantages- cost accounting and financial accounting – cost accounting and management accounting – methods of costing – cost classification – cost centre and cost unit – cost sheet- unit costing – expenses excluded from cost.
Unit 2
Materials – purchase procedure – centralized purchasing- decentralised purchasing – stock levels: minimum level – maximum level – Re-order Level, Average stock level – Danger level – EOQ – issue of materials–pricing of material issues: LIFO – FIFO – Simple Average -Weighted Average.
Unit 3
Labour – Time keeping and time booking – methods of wage payment: Time rate and piece rate system – Taylor’s differential piece rate system – Merrick’s multiple piece rate system – incentive systems (Halsey and Rowan) – overtime – idle time.
Unit 4
Overheads – meaning and classification – allocation and apportionment of overheads – primary and secondary overhead distribution summary – Direct re-distribution -Step ladder – Reciprocal services method – Repeated distribution – Simultaneous equation – Absorption of overheads – methods of absorption – machine hour rate – concept of over and under absorption of overheads.
Unit 5
Operating Costing – Transport costing – calculation of cost per kilometre – cost per passengerkilometre and cost per tonne kilometre – Process Costing – meaning – features – advantages – disadvantages – principles- elements of production cost – process loss – normal and abnormal loss –abnormal gain.