Cost & Management Accounting

Intended Learning Outcomes:

Upon completion of this course, a student should be able to:

  1. Understand the relationship between the cost drivers and the types of costs in a company.
  2. Apply cost-volume-profit analysis and sensitivity analysis.
  3. Estimate cost functions using several methods and subsequent evaluation of the functions.
  4. Understand what the relevant costs are like for managerial decision making .
  5. Apply job cost accounting under actual and normal costing.
  6. Comprehend the activity-based costing approach in a cost system.
  7. Apply process-costing methods using the weighted average method and FIFO method.
  8. Construct operating and financial budgets, static and flexible budget and analyze variances.
  9. Explain the financial and no financial measures of quality and time.
  10. perform customer-profitability analysis and sales variance analysis.

Course Description:

In addition to providing data used to cost products and services, cost

accounting provides data to managers for planning and controlling as well as costing products,

services, customers. Increasingly, cost accountants are responsible for making decision instead of

simply being data providers. Cost accounting is a managerial tool used for business strategy and

implementation. This course should provide you with the concepts and tools needed to compute,

interpret and analyze cost information for decision making.

Recommended Text Books:

S.No. Title Author(s) Assigned Code
1 Cost Accounting planning and control (7th  edition)

 

Matz usry  
2 Cost Accounting Arshad Awan  

 Topics

Session Topics
1-2 Introduction to cost accounting, concept of cost vs. expense
3-4 Classification of cost (Direct and indirect  cost, fixed cost, variable cost, semi variable cost)
5-6 Period cost, product cost, controllable cost, non controllable cost,Opportunity cost, prime cost and conversion cost, trading concern
7-8 Financial statements (Income statement of trading concern, income statement of manufacturing concern)
9-10 Material control and determining cost (Meaning of material ,objectives of inventory control, techniques of inventory control,stock levels
11-12 Economical order quantity, inventory turn over

 

13-14 Material control and storing and issuing (Material purchase procedure ,store card ,bin card ,store ledger,
15-16 Inventory system periodic and perpetual, Pricing the issue of material, Method of pricing of material issue and returned)
 17- 18 By product and joint product
 19-20 Break even point and cost volume –profit analysis (Nature of break even analysis, applying cost volume-profit analysis)
21-22 Factory overhead costing and accounting (Factory over head predetermine ,predetermine FOH rates, selection of base for FOH rate ,accounting for actual FOH ,FOH control and variance analysis)
23-24 Factory overhead- Departmentalization (overhead accounting ,

Collection of overhead,allocaton and apportionment of overhead, production and services department)

25-26 Job order costing (Cost system actual and standard, job order cost accumulation procedures )
27-28 Budgeting (various type of budgeting techniques)
29-30 Process costing (characteristics, Comparison of process costing and job order costing, Process costing procedure cost of production report)
31-32 Differential cost analysis (various techniques for differential cost analysis)

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