Introduction to Cost Accounting
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This document provides an introduction to cost accounting. It defines cost accounting as the application of accounting principles and techniques to determine and analyze costs. It discusses the meaning of cost for common people versus its technical definition. The key purposes of cost accounting are then outlined as determining and controlling costs, providing information for decision making, and ascertaining profit. Important aspects of cost accounting like classification of costs and cost control are also mentioned. The document compares financial and cost accounting and highlights their differences. It concludes by listing some limitations of cost accounting such as more paperwork, potential unreliability, expense, and it sometimes being unnecessary.
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B. it has a relatively large amount of operating cash.
C. the P/E ratio has been trending downwards.
D. it may have to negotiate a short-term bank loan.
2. Which of the following costs are included in the cost classification that is based on the relationship between total cost and volume of activity?
A. Variable cost and fixed cost.
B. Direct cost and indirect cost.
C. Product cost and period cost.
D. Committed cost and discretionary cost.
3. Which of the following costs are included in the cost classification that is based on the time frame perspective?
A. Variable cost and fixed cost.
B. Direct cost and indirect cost.
C. Product cost and period cost.
D. Committed cost and discretionary cost.
4. A cost that is incurred because of a long-range policy decision is known as a:
A. discretionary cost.
B. committed cost.
C. continuous cost.
D. standard cost.
5. Which of the following is not an important factor to consider when preparing a sales forecast?
A. The state of the economy.
B. Seasonal demand variations.
C. A change in the management team.
D. Competitors' actions.
6. Which of the following is a plan for acquiring the resources needed to complete the manufacturing activities that will satisfy the organization's sales forecast?
A. Sales budget
B. Raw materials budget
C. Production budget
D. Direct labor budget
7. Which of the following lists the components of the master budget in correct chronological order?
A. Direct labor budget, production budget, cost of goods sold budget.
B. Sales budget, production budget, cash budget.
C. Sales budget, raw materials budget, production budget.
D. Cash budget, production budget, manufacturing overhead budget.
8. The raw materials budgeted to be purchased for the period is equal to:
A. ending inventory + raw material used - beginning inventory.
B. ending inventory + ending inventory - raw material used.
C. beginning inventory - ending inventory + raw material used.
D. beginning inventory + raw material used - ending inventory.
9. The operating expense budget is based on the:
A. sales budget.
B. production budget.
C. manufacturing overhead budget.
D. cash budget.
10. Depreciation on the office equipment would ...
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3. It describes a cost sheet, which is a report that accumulates all costs associated with a product or job, and can be used for cost control and setting future prices.
1. The cash budget is especially important to a firm when A. th.docx
1. The cash budget is especially important to a firm when:
A. there is not a lot of confidence in the sales forecast.
B. it has a relatively large amount of operating cash.
C. the P/E ratio has been trending downwards.
D. it may have to negotiate a short-term bank loan.
2. Which of the following costs are included in the cost classification that is based on the relationship between total cost and volume of activity?
A. Variable cost and fixed cost.
B. Direct cost and indirect cost.
C. Product cost and period cost.
D. Committed cost and discretionary cost.
3. Which of the following costs are included in the cost classification that is based on the time frame perspective?
A. Variable cost and fixed cost.
B. Direct cost and indirect cost.
C. Product cost and period cost.
D. Committed cost and discretionary cost.
4. A cost that is incurred because of a long-range policy decision is known as a:
A. discretionary cost.
B. committed cost.
C. continuous cost.
D. standard cost.
5. Which of the following is not an important factor to consider when preparing a sales forecast?
A. The state of the economy.
B. Seasonal demand variations.
C. A change in the management team.
D. Competitors' actions.
6. Which of the following is a plan for acquiring the resources needed to complete the manufacturing activities that will satisfy the organization's sales forecast?
A. Sales budget
B. Raw materials budget
C. Production budget
D. Direct labor budget
7. Which of the following lists the components of the master budget in correct chronological order?
A. Direct labor budget, production budget, cost of goods sold budget.
B. Sales budget, production budget, cash budget.
C. Sales budget, raw materials budget, production budget.
D. Cash budget, production budget, manufacturing overhead budget.
8. The raw materials budgeted to be purchased for the period is equal to:
A. ending inventory + raw material used - beginning inventory.
B. ending inventory + ending inventory - raw material used.
C. beginning inventory - ending inventory + raw material used.
D. beginning inventory + raw material used - ending inventory.
9. The operating expense budget is based on the:
A. sales budget.
B. production budget.
C. manufacturing overhead budget.
D. cash budget.
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A. Production budget.
B. Manufacturing overhead budget.
C. Operating expense budget.
D. Cash budget.
11. Which of the following items would be included in the operating expense budget?
A. Sales commissions.
B. Raw material purchases.
C. Cash receipts.
D. Cost of goods sold.
12. Which of the following would not appear in the operating expense budget? .
A. Sales commissions.
B. Delivery expense.
C. Advertising.
D. Depreciation on the production equipment
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B. The budgeted income statement.
C. The budgeted balance sh.
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Cost accounting involves classifying, recording, and allocating expenditures to determine the costs of products or services. It provides data to management for control and guidance. Cost accounting ascertains the cost of every order, job, contract, process, service, or unit. It deals with product costs as well as selling, distribution, and other costs. The goal is to determine total costs with reasonable accuracy and show how costs are constituted to control and reduce them.
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ALL SO USEFUL FOR CA CMA, CS ,B COM, BBA. MBA
IGNOU BCOM ECO-10 (Elements of Costing) Study Material –Dear Learners, The full downloadable free study materials of ECO-10 (Elements of Costing) are listed below to facilitate your studies for securing good marks in upcoming term end examinations. Though, your performance in examination will mostly depend on your efforts only. Even though, I can assure you that the following study materials will proof to be cabalistic in your efforts.
Block- 1 Basic Concepts
Unit-1 Nature and Scope
Unit-2 Concept of Cost and Its Ascertainment
Block- 2 Materials and Labour
Unit-3 Procurement, Storage and Issue
Unit-4 Inventory Control
Unit-5 Pricing the Issue of Materials
Unit-6 Labour
Block- 3 Overheads
Unit-7 Classification and Distribution of Overheads
Unit-8 Absorption of Factory Overheads
Unit-9 Treatment of Other Overheads
Block-4 Methods of Costing
Unit-10 Unit Costing
Unit-11 Reconciliation of Cost Financial Accounts
Unit-12 Job and Contract Costing
Unit-13 Process Costing
1. Cost Accountancy
2. Cost Accounting
2.1 Definition of Cost Accounting 2.2 Objectives of Cost Accounting 2.3 Importance of Cost Accounting 2.4 Advantages of Cost Accounting 2.5 Limitations of Cost Accounting 2.6 Reports Generated by Cost Accounting Department
3. Installation of Cost Accounting System
3.1 Basic Considerations 3.2 Steps in Introduction 3.3 Essentials of a Good Cost Accounting System 3.4 Difficulties in Introduction
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This document provides an overview of cost accounting. It begins with definitions of cost and cost accounting, noting that cost accounting is concerned with recording, classifying, summarizing, and analyzing costs to determine the costs of products or services and provide information to management for decision making. The document then discusses objectives of cost accounting like cost ascertainment and control, methods like job and process costing, techniques including standard and absorption costing, classifications of costs by nature, function, variability, and controllability, and purposes of cost accounting like price determination and profitability analysis. It provides examples throughout and concludes by listing references used.
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This document discusses key concepts in cost accounting, including the meaning and objectives of cost accounting, the relationship between cost accounting and other types of accounting, elements of cost like direct and indirect costs, and cost classification. It defines important cost accounting terms and concepts, explains the general principles and advantages/limitations of cost accounting, and describes how a cost sheet is used to analyze costs.
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The document provides an overview of cost accounting concepts. It defines cost accounting as the process of identifying, measuring, accumulating, analyzing, preparing, interpreting, and communicating information to permit informed judgments and decisions by users of the information. It discusses the objectives, scope, importance and limitations of cost accounting. It also covers the classification of costs based on different criteria such as nature, variability, controllability, and managerial functions. The document provides examples and explanations of key cost accounting terms and concepts.
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Syllabus
Chapter-1
Introduction to objective, scope and outcome the subject
Chapter 2
Introduction: Scope and Specialization of Civil Engineering, Role of civil Engineer in Society, Impact of infrastructural development on economy of country.
Chapter 3
Surveying: Object Principles & Types of Surveying; Site Plans, Plans & Maps; Scales & Unit of different Measurements.
Linear Measurements: Instruments used. Linear Measurement by Tape, Ranging out Survey Lines and overcoming Obstructions; Measurements on sloping ground; Tape corrections, conventional symbols. Angular Measurements: Instruments used; Introduction to Compass Surveying, Bearings and Longitude & Latitude of a Line, Introduction to total station.
Levelling: Instrument used Object of levelling, Methods of levelling in brief, and Contour maps.
Chapter 4
Buildings: Selection of site for Buildings, Layout of Building Plan, Types of buildings, Plinth area, carpet area, floor space index, Introduction to building byelaws, concept of sun light & ventilation. Components of Buildings & their functions, Basic concept of R.C.C., Introduction to types of foundation
Chapter 5
Transportation: Introduction to Transportation Engineering; Traffic and Road Safety: Types and Characteristics of Various Modes of Transportation; Various Road Traffic Signs, Causes of Accidents and Road Safety Measures.
Chapter 6
Environmental Engineering: Environmental Pollution, Environmental Acts and Regulations, Functional Concepts of Ecology, Basics of Species, Biodiversity, Ecosystem, Hydrological Cycle; Chemical Cycles: Carbon, Nitrogen & Phosphorus; Energy Flow in Ecosystems.
Water Pollution: Water Quality standards, Introduction to Treatment & Disposal of Waste Water. Reuse and Saving of Water, Rain Water Harvesting. Solid Waste Management: Classification of Solid Waste, Collection, Transportation and Disposal of Solid. Recycling of Solid Waste: Energy Recovery, Sanitary Landfill, On-Site Sanitation. Air & Noise Pollution: Primary and Secondary air pollutants, Harmful effects of Air Pollution, Control of Air Pollution. . Noise Pollution Harmful Effects of noise pollution, control of noise pollution, Global warming & Climate Change, Ozone depletion, Greenhouse effect
Text Books:
1. Palancharmy, Basic Civil Engineering, McGraw Hill publishers.
2. Satheesh Gopi, Basic Civil Engineering, Pearson Publishers.
3. Ketki Rangwala Dalal, Essentials of Civil Engineering, Charotar Publishing House.
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Introduction to Cost Accounting
- 2. GOVERNMENT FIRST GRADE COLLAGE HUMNABAD PRESENTED BY : VISHAL DEPARTMENT : B.COM REGISTER NO : U04BO21C0121 UNIVESITY : GULBARGA Presentation on : Introduction of cost accounting
- 3. Introduction of Cost accounting it is the application of accounting and costing principal , methods and techniques in the ascertainment of cost and analysis of selling and or expenses in as compared with precious excesses or with standards.
- 4. Meaning of cost The cost does not have a definite meaning , For common people. Cost means the amount spent On purchasing an article. According to the oxford dictionary Cost means the price paid for something. Meaning of cost
- 5. 1.Determination of cost 2.Controling cost 3.Providind information for decision making 4.Asertaining costing profit 5.Preparation of financial and other statement
- 6. IMPORTANC OF COST ACCOUNTING 1.Classification of costs 2.Cost control 3.Price determination 4.Fixing of the standards 5.Helps determination the total per unit cost
- 7. Financial accounting Cost accounting a. Financial accounting records transections relating to outsiders of the business. a. Cost accounting records internal transections. b. Financial accounting provides information regarding the profit and loss as well as the financial position to owners and other required authorities. b. Preparation of cost accounts is to provide information to the management for decision making and control. c. Preparation of financial accounting is compulsory c. Compulsory only for certain industries tries and it is optional for other industries.. d. In financial accounting the operating results will be provided usually at the end of the year . d. In cost accounting the information will be provided to the management as and required. e. It is not useful in determining the relative efficiency of workers, machinery etc. e. It provides valuable information about effcieny Difference between financial and cost accounting
- 8. f. it helps to measure the overall profitability of a firm . F. It only measure the profitability of a product or a service . g. It represents the financial position of firm accurately . g. It accounts for the costs per unit of production . h. To prepare financial statement. h. It is useful for the management to planning , controlling and decision making .
- 9. Limitations of cost Cost accounting [5] More paperwork [4] Non reliable [3] defective [1] expensive [2] unnecessary LIMITATIONS
- 10. Thank you