cost accounting

ONE DAY ORIENTATION PROGRAMME ON CURRICULUM DESIGN AND DELIVERY
FOR BBA 3RD SEM COURSE OF BNU AS PER NEP-2020
DISCIPLINE SPECIFIC ELECTIVE

COST ACCOUNTING
COURSE CODE (BBA.3.1)
Presenter:
Dr. Amruthamma R
Government First Grade College Hoskote,
Bangalore Rural District
Course Outcomes
• Demonstrate an understanding of the elements of cost
and prepare a cost sheet.
• Prepare material related documents, understand the
management of stores and issue procedures.
• Develop the ability to calculate employee costs.
• Classify, allocate, apportion overheads and calculate
overhead absorption rates.
Syllabus
Module 1 : Introduction to Cost Accounting

Module 2 : Cost Sheet, Tenders and Quotations
Module 3 : Material Cost
Module 4 : Labour Cost
Module 5 : Overheads
Question Paper Pattern
Section Question Need to Marks (per Total marks

Given Answer Question)
A 7 5 2 10
B 5 3 4 12
C 5 3 10 30
D 2 1 8 08
Total Marks 60
Suggested Paper Blue Print
SECTION A SECTION B SECTION C SECTION D

Module 1 2 1 - -
Module 2 1 1 1 1
Module 3 2 1 1 1
Module 4 1 1 1 1
Module 5 1 1 2
TOTAL QUESTIONS 7 5 5 2
Module 1
Introduction to Cost
Accounting
Introduction to Cost Accounting
Introduction: Meaning of Cost, Costing and Cost Accounting, Importance, Uses

of cost accounting,, Functions of Cost Accounting, Distinction between Cost
Accounting and Financial Accounting; Advantages and disadvantages of Cost
Accounting; Cost concepts- Cost unit, cost centre, cost reduction and cost
control; Classification and elements of Cost; Methods and Techniques of Costing
(Meanings only). Installation of a Cost System
Module 2
Cost Sheet, Tenders and
Quotations
Cost Sheet, Tenders and Quotations
Introduction, Meaning, Objectives and contents of Cost Sheet.

Problems on Preparation of Cost Sheet. Meaning of Tender and
Quotation. Basis for preparation of Tenders and Quotations-
Problems on preparation of statement of Tenders and
Quotations; E-Tender (Concept only)
Module 3
Materials Cost
Materials Cost
Materials: Meaning, Importance and Types of Materials - Direct and Indirect Material;
Procedure for procurement of materials and documentation involved in the procurement of

materials- Bill of materials, Material requisition note, Purchase requisition note, Purchase
order, Goods received note; Store records - Bin cards, Stores Ledger, Stock Control Cards;
Inventory Control- Meaning and Objectives, Inventory control techniques (concept only);
Determination of various stock levels: Re-order Level, Minimum Level, Maximum Level,
Average Level and Danger Level. Problems on Level Setting and Computation of EOQ; Material
Issues and Valuation: preparation of Stores Ledger Account, Methods of pricing material issues
- FIFO, LIFO, Simple and Weighted Average Price Methods- Problems.
Module 4
Labour Cost
Labour Cost
Introduction- Meaning of labour cost, Types of Labour – Direct Labour and
Indirect Labour. Labour Cost Control – Meaning, Objectives and Benefits. Scope
of Labour Cost Control Attendance Procedure- Time keeping and Time Booking,
Idle Time- Causes and treatment of Normal and Abnormal Idle Time, Overtime-
Causes and treatment (Theory only); Methods of Remuneration- Simple Time
Rate System, Straight Piece Rate System, Taylor’s Differential Piece Rate System,
Merrick’s Differential Piece Rate System, Halsey System and Rowan System.
Problems on calculation of Labour Cost, Overtime Wages and Wage and
Incentive Systems.
Module 5
Overheads
Overheads
Introduction- Meaning and Classification of Overheads; Accounting and Control

of overheads; Allocation and Apportionment of overheads; Re-apportionment
of Overheads; Methods of Cost Re-apportionment; Problems on Primary and
Secondary distribution and Secondary distribution using direct and reciprocal
basis methods only (Repeated Distribution Method and Simultaneous Equation
Method); Problems on machine hour rate.
Section -D
Possible Questions
✓Prepare a Cost Sheet with imaginary figures.
✓Calculate the amount of wages under Halsey / Rowan Plans using imaginary
data.
✓Identification of elements of cost in services sector
✓Cost estimation for the making of a proposed product
Skill Development Activities
• Prepare a Cost Sheet with imaginary figures.
• List the documents required in Inventory Management.
• Demonstrate the valuation of inventory using any one method of pricing
material issues.
• Visit any manufacturing entity, collect the method of inventory valuation
adopted & procedure involved in procuring inventory.
• Calculate the amount of wages under Halsey / Rowan Plans using imaginary
data.
• Any other activities, which are relevant to the course.
THANK YOU

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ONE DAY ORIENTATION PROGRAMME ON CURRICULUM DESIGN AND DELIVERY

FOR BBA 3RD SEM COURSE OF BNU AS PER NEP-2020

DISCIPLINE SPECIFIC ELECTIVE

Module 1 : Introduction to Cost Accounting

Section Question Need to Marks (per Total marks

SECTION A SECTION B SECTION C SECTION D

Introduction: Meaning of Cost, Costing and Cost Accounting, Importance, Uses

Introduction, Meaning, Objectives and contents of Cost Sheet.

Procedure for procurement of materials and documentation involved in the procurement of

Introduction- Meaning and Classification of Overheads; Accounting and Control

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