INSTITUTE OF BUSINESS & MANAGEMENT SCIENCES
KPK AGRICULTURAL UNIVERSITY PESHAWAR
Programme: MBA-II
Course Name: Cost Accounting
Course Code:MBA-713
Credit Hours: 03
Total Weeks: 16
Total Hours: 48
Course Objectives
This course of cost Accounting deals with planning and controlling. The planning function is essentially a decision making process and controlling deals with management task of organization. The connecting link between the originating planning function and the terminating control function is the cost accounting information system, rightly termed as a tool of management that permits effective communication, continuous feedback, responsibility accounting and managerial flexibility. This course will help the students to perform well and succeed at any level of management in both problem identification and problem solving.
Week 1:
Introduction
The Nature and Scope of Cost Accounting
Relationship of Cost Accounting to General Accounting
Limitations of Financial Accounting
Week 2:
Classification of Cost
Distinctions between Cost and Expense
Sources of Costing Accounting Data
Cost Department
Week 3:
Financial Statement
Reporting Function
Evaluating Annual Result to Outsider
Evaluating Annual Report Result to Insider
Week 4:
Cost of Goods Manufactured Statement
Cost of Goods Sold Statement
Income Statement & Balance Sheet
Week 5:
Job Order Costing
Cost Accumulation Procedure
Job Order Cost Accumulation Procedure
Cost Accounting Procedure for Material
Week 6:
Cost Accounting Procedure for Labor
Cost Accounting Procedure for F.O.H
Job Order Cost Sheet
Week 7:
Process Costing
Characteristic of Process Costing
Procedure of Process Costing
Procedure for Material
Week 8:
Procedure for Labor
Procedure for F.O.H
Cost of Production Report
Week 9:
Factory Overhead Application
F.O.H. Predetermined
Activity Level Selection
Predetermined F.O.H Factor.
Week 10:
Factory Overhead Actual and Applied
Factory Overhead Over and Under Applied
Variance Analysis
Week 11:
Controlling and Costing Of Material Cost
Procedure for Material Procurement and use
Material Costing Methods
FIFO, LIFO, and Average Method
Perpetual & Physical Inventory Systems.
Week 12:
Quantitative Model For Material
Planning Material Requirement
Economic Order Quantity
Maximum, Minimum, Level and Ordering Point
Week 13:
Planning And Controlling Labor Cost
Basis for Labor Cost Control.
Productivity and Efficiency Measurement
Labor Performance Report
Procedure for Labor Costing.
Incentive Wage Plan, Types & Purposes.
Week 14:
Budgeting Profit Sales And Cost
Profit Analysis
Types and Principles of Budget
Advantages of Profit Planning
Week 15:
Standard Costing
Objectives of Standard Costing
Budgets and Standards
Material Cost Standard
Week 16:
Labor Cost Standard
Factory Overhead Standard
Analysis of Variance
Recommended Book
COST ACCOUNTING PLANNING AND CONTROL-- Matz and Usry. South Western Publishing Company (1990).