PDF COSTCOST AND AND AND MANAGEMENT MANAGEMENT ...

STUDY MATERIAL EXECUTIVE PROGRAMME

COST AND MANAGEMENT ACCOUNTING

MODULE 1 PAPER 2

ICSI House, 22, Institutional Area, Lodi Road, New Delhi 110 003 tel 011-4534 1000, 4150 4444 fax +91-11-2462 6727 email info@icsi.edu website icsi.edu

? THE INSTITUTE OF COMPANY SECRETARIES OF INDIA

TIMING OF HEADQUARTERS

Monday to Friday Office Timings ? 9.00 A.M. to 5.30 P.M.

Public Dealing Timings Without financial transactions ? 9.30 A.M. to 5.00 P.M.

With financial transactions ? 9.30 A.M. to 4.00 P.M.

Phones 4150444,45341000

Fax 011-24626727

Website icsi.edu

E-mail info@icsi.edu

Laser Typesetting by Delhi Computer Services, Dwarka, New Delhi, and Printed at M.P.Printers/JULY, 2014/10,000

EXECUTIVE PROGRAMME

COST AND MANAGEMENT ACCOUNTING

Finance and accounting have assumed much importance in today's competitive world of business wherein corporate organisations have to show the true and fair view of their financial position. Thus, the application of accounting in the business sector has become an indispensable factor. Company Secretary has to provide the complete and accurate information about the financial operations of the company to management for decision making. This emphasises that the books of account are to be maintained accurately, up-to-date and as per the norms.

The subject `Cost and Management Accounting' is very important and useful for optimum utilisation of existing resources. These are branches of accounting and had been developed due to limitations of financial accounting. It is an indispensable discipline for corporate management, as the information collected and presented to management based on cost and management accounting techniques helps management to solve not only specific problems but also guides them in decision making. Keeping in view the importance of this subject, various topics on Cost and Management Accounting have been prescribed in the syllabus of CS Executive Programme with the objective of acquainting the students with the basic concepts used in cost accounting and management accounting having a bearing on managerial decision-making.

The entire paper has been discussed in twelve study lessons. In starting four study lessons we have discussed about the basic of cost accounting, material, labour and overheads costing. Further we have highlighted the concept of activity based costing, cost records, different costing systems. Thereafter study focuses on the marginal costing, standard costing, budgeting & its applications for decision making in business. At last we have discussed about cost accounting records, cost audit and analysis & interpretation of financial statements.

In this study every efforts has been made to give a comprehensive coverage of all the topics relevant to the subject. In all study lessons the requisite theoretical framework for understanding the practical problems in the subject has been explained and wherever necessary practical illustrations have been given to facilitate better understanding. At the end of each study lesson a brief about the lesson have been given under the caption `Lesson Round Up' as well a good blend of theoretical and practical questions have been given under the caption `Self Test Questions' for the practice of students to test their knowledge. In fact, this being a practical paper, students need to have good theoretical knowledge and practice to attain the requisite proficiency and confidence.

This study material has been published to aid the students in preparing for the Cost and Management Accounting paper of the CS Executive Programme. It is part of the education kit and takes the students step by step through each phase of preparation stressing key concepts, pointers and procedures. Company Secretaryship being a professional course, the examination standards are set very high, with emphasis on knowledge of concepts, applications, procedures and case laws, for which sole reliance on the contents of this study material may not be enough.

Therefore, in order to supplement the information/contents given in the study material, students are advised to refer to the Suggested Readings mentioned in the study material, e-bulletin, Business Dailies and Journals.

In the event of any doubt, students may write to the Directorate of Academics and Professional Development in the Institute for clarification at academics@icsi.edu.

(iv)

Although due care has been taken in publishing this study material yet the possibility of errors, omissions and/or discrepancies cannot be ruled out. This publication is released with an understanding that the Institute shall not be responsible for any errors, omissions and/or discrepancies or any action taken in that behalf.

Should there be any discrepancy, error or omission noted in the study material, the Institute shall be obliged if the same are brought to its notice for issue of corrigendum in the `e-bulletin'.

The Institute has decided that the examination for this paper under new syllabus from December 2014 session in the Optical Mark Recognition (OMR) format, whereby students are required to answer multiple choice question on OMR sheet by darkening the appropriate choice by HB Pencil. One mark will be awarded for each correct answer. There is NO NEGATIVE mark for incorrect answers.

The specimen OMR sheet is appended at the end of the study material. There is practice test paper in the study to acquaint students with the pattern of examination. These are for practice purpose only, not to be sent to the institute.

(v)

EXECUTIVE PROGRAMME

SYLLABUS FOR

MODULE 1 - PAPER 2: COST AND MANAGEMENT ACCOUNTING (100 Marks)

Level of Knowledge: Working Knowledge Objective: To acquire knowledge and understanding of the concepts, techniques and practices of cost and management accounting and to develop skills for decision making. Detail Contents:

1. Introduction to Cost and Management Accounting

? Cost Accounting: Evolution, Meaning, Objectives and Scope ? Concepts of Costs , Classifications and Elements of Cost ? Cost Centre and Cost Unit ? Methods and Techniques of Costing ? Cost Accounting Standards ? Installation of a Costing System ? Practical Difficulties in Installing a Costing System ? Role of Cost Accountant in Decision Making ? Management Accounting: Evolution, Meaning, Objectives and Scope ? Tools and Techniques of Management Accounting ? Relationship of Cost Accounting, Financial Accounting, Management Accounting and

Financial Management ? Conflicts in Profit versus Value Maximisation Principle ? Role of Management Accountant in Decision Making

2. Material Cost

? Materials Control ? Concept and Techniques ? Procurement Procedures and Documentation: Methods of Purchasing; Procedure of

Purchases, Stores and Issue of Material; Stock Verification ? Methods of Pricing of Material: FIFO, LIFO, Simple Average, Weighted Average ? Accounting and Control of Material Losses, Wastage, Scrap, Spoilage and Defectives ? Inventory Management: Techniques of fixing of minimum, maximum and reorder levels,

Economic Order Quantity, ABC Analysis ; Stock Verification and Perpetual Inventory

3. Labour Cost

? Meaning and Classification of Labour Costs ? Accounting and Control of Labour Costs ? Time Keeping and Time Booking ? Attendance and Payroll Procedures, Time Recording, Overtime and Idle Time ? Labour turnover and Remedial Measures ? Efficiency Rating Procedures; Remuneration Systems and Incentive Schemes

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download