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

SECTION A: INTRODUCTION TO COST ACCOUNTING [40%]

• Introduction 
• Important Cost Accounting Terms 

• Classification of Cost 
• Preparation of Cost Sheet and Ascertainment of Profit 

• 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 

• Cost Book - Keeping 
• Reconciliation of Costing and Financial Profit 
• Integrated Accounting System 

SECTION B: 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%]

• 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