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Cost Accounting (CA) (Paper-8) CMA Inter Group 1

Syllabus

SECTION A: INTRODUCTION TO COST ACCOUNTING [40%]

1. Introduction to Cost Accounting - 5%
  • Introduction 
  • Important Cost Accounting Terms 
Elements of Cost 
  • Classification of Cost 
  • Preparation of Cost Sheet and Ascertainment of Profit 
2. Cost Ascertainment – Elements of Cost - 15%
  • Material Costs 
    • Procurement of Materials 
    • Inventory Management and Control 
    • Inventory Accounting and Valuation 
    • Physical Verification, Slow and Non-moving Stock and Treatment of Losses 
    • Scrap, Spoilage, Defectives, and Wastages 
  • Employee Costs 
    • Time Keeping, Time Booking, and Payroll 
    • Principles and Methods of Remuneration and Incentive Schemes 
    • Overtime and Idle Time 
    • Employee Cost Reporting 
    • Labour Turnover 
  • Direct Expenses 
    • Definition and Examples 
    • Nature of Direct Expense 
    • Direct vs. Indirect Expense
  • Overheads 
    • Collection, Classification, Apportionment and Allocation of Overheads 
    • Absorption and Treatment of Over or Under Absorption of Overheads 2.4.3 Reporting of Overhead Costs 
3. Cost Accounting Standards (CAS 1 to CAS 24) - 10%
4. Cost Book Keeping - 10%
  • Cost Book - Keeping 
  • Reconciliation of Costing and Financial Profit 
  • Integrated Accounting System 


SECTION B: METHODS OF COSTING [30%]

5. Methods of Costing - 30%
  • Job Costing 
  • Batch Costing 
  • Contract Costing 
  • Process Costing – Normal and Abnormal Losses, Equivalent Production, Inter-process Profit, Joint and By Products 
  • Operating Costing – Transport, Hotel, and Healthcare


SECTION C: COST ACCOUNTING TECHNIQUES [30%]

6. Cost Accounting Techniques - 30%
  • Marginal Costing 
    • Concept of Marginal Cost and Marginal Costing 
    • Absorption Costing vs. Marginal Costing 
    • CVP Analysis 6.1.4 Margin of Safety 
    • Application of Marginal Costing for Decision Making 
  • Standard Costing and Variance Analysis 
    • Concept of Standard Cost and Standard Costing 
    • Advantages and Limitations 
    • Computation and Analysis of Variances (Material and Labour Costs only) 
  • Budget and Budgetary Control 
    • Concepts, Types of Budget 
    • Budgetary Control vs. Standard Costing 
    • Advantages and Limitations 
    • Preparation of Budgets