BCA Syllabus – Principles of Costing

5.3 Principles of Costing

Third Year          Part III Group A                 Fifth Semester                Subject Code:   

Unit – 1

Definition of Costing – Important use of Costing – Objects and advantages of Costing – Difference between cost and financial accounts – Installation of costing system – Analysis and Classification of costs – Preparation of cost sheet.

Unit – 2

Materials: Maintenance of stores and records, minimum level, Reorder level, Economic ordering quantity – Perpetual Inventory.

Unit – 3

a.       Methods of remunerating Labor : incentive schemes –

b.      Accounting of overheads: Fixed and variable overheads – Allocation – Apportionment and absorption of overheads.

Unit – 4

Budget and budgetary control: objectives and advantages, Limitations, Functional budgets – flexible budget and cash budget – preparation thereof.

Unit – 5

Marginal costing: Meaning, objects and advantage and Limitations – Break Even Point (Simple Problems only)

TEXT BOOKS:

1. Cost Accounting – S.P.Jain & K.L.Narang – Kalyani Publishers 2005.

Part 1, 2, 5.2, 5.4

2. Cost Accounting – R.S.N.Pillai & S.Bhagavathy – S.Chand Company Ltd 2004.

Chapter – 1, 2, 3,4,7,8,10,21,22

3. Cost Accounting – Khanna Pandey & Anujha 1991.

Page 1 to 166, 427 to 515, 586 to 631