Ranchi University, Jharkhand, General Semester 4, Cost Accounting Syllabus

Unit I:
Introduction: Meaning, Objectives and Advantages of Cost Accounting, Difference between financial,
cost and management accounting, Cost concepts and classifications, Role of cost accountant in an
organization.

Unit II:
Elements of Cost:
a. Materials: Material/Inventory control – concept and techniques, Accounting and control of
purchases, storages and issues of materials, Methods of pricing of material issues – FIFO, LIFO.
b. Labour : Accounting and control of labour cost, Labour turnover and fringe benefits.

Unit III: Overhead
Classification, Allocation, Apportionment and Absorption of overhead, Under and over absorption,
Capacity costs

Unit IV: Method of Costing
Contract Costing, Process Costing

Unit V:
Service Costing (only transport), Accounting System: Integral and non-integral systems, Reconciliation
of cost and financial accounts.

Unit VI: Marginal Costing and Break –Even Analysis
Concept of Marginal Costs and Marginal Costing: Assumption of Marginal Costing, Advantages and
Limitations of Marginal Costing; Break –Even Analysis: Break-Even Point, Margin of Safety.