University of Mumbai, Maharashtra (Mumbai University), General , Financial Accounting and Auditing Paper-VIII: Cost Accounting Syllabus

Unit 1 Introduction to Cost Accounting
(a) Objectives and scope of Cost Accounting
(b) Cost centres and Cost units
(c) Cost classification for stock valuation, Profit measurement, Decision making and
control
(d) Coding systems
(e) Elements of Cost
(f) Cost behaviour pattern, Separating the components of semi- variable costs.

Unit 2 Material Cost
(i) Procurement procedures—Store procedures and documentation in respect of
receipts and issue of stock, Stock verification
(ii) Inventory control —Techniques of fixing of minimum, maximum and reorder levels,
Economic Order Quantity, ABC classification; Stocktaking and perpetual inventory
(iii) Inventory accounting
Note- Simple practical problems based on
Calculation of EOQ, Raw Material Turnover ratio, Preparation of stock ledger and
Valuation of Inventories, based on FIFO and Weighted average cost.

Unit 3 Labour Cost
(i) Attendance and payroll procedures, Overview of statutory requirements, Overtime,
Idle time and Incentives
(ii) Labour turnover
(iii) Utilisation of labour, Direct and indirect labour, Charging of labour cost, Identifying
labour hours with work orders or batches or capital jobs
(iv) Efficiency rating procedures
(v) Remuneration systems and incentive schemes.
Note-Simple practical problems based on
Preparation of labour cost statement Remuneration and incentive systems based on
Piece work plan, Haley Premium Plan, Rowan system, Gantt’s Task.

Unit 4 Overheads
Functional analysis — Factory, Administration, Selling and Distribution
Behavioural analysis — Fixed, Variable, Semi-variable cost
Note-Simple practical problems on
Departmentalization and apportionment of primary overheads,
Computation of overhead rates including Machine overhead rates
Basic concepts of treatment of over/under absorption of overheads- Direct Labour
method and Prime Cost method.

Unit 5 Classification of Costs and Cost Sheet
Classification of costs, Cost of Sales, Cost Centre, Cost Unit, Profit Centre and Investment
Centre
Cost Sheet, Total Costs and Unit Costs, Different Costs for different purpose
Note- Simple practical problems on preparation of cost sheet
6 Reconciliation of cost and financial accounts
Practical problems based on Reconciliation of cost and Financial accounts.