Cost Accounting I 2026

Unit – I Introduction of Cost Accounting: Definition-Nature and Scope – Principles of Cost
Accounting – Cost Accounting and Financial Accounting – Cost Accounting Vs Management
Accounting –Installation of Costing System –Classification of Costs– Cost Centre– Profit Centre.
Unit – II Cost Sheet and Methods of Costing: Preparation of Cost Sheet – Tenders & Quotations –
Reconciliation of Cost and Financial Accounts –Unit Costing-Job Costing.
Unit – III Material Costing: Material Control – Meaning and Objectives – Purchase of Materials –
EOQ –Stores Records – Reorder Levels – ABC Analysis – Issue of Materials –Methods of Issue –
FIFO – LIFO – Base Stock Method – Specific Price Method – Simple and Weighted Average
Method.
Unit – IV Labour Costing Direct Labour and Indirect Labour – Time Keeping – Methods and
Calculation of Wage Payments – Time Wages – Piece Wages – Incentives – Different Methods of
Incentive Payments – Idle time–Overtime – Labour Turnover – Meaning, Causes and Measurement.
Unit – V Overheads Costing Overheads – Definition – Classification – Allocation and
Apportionment of Overheads – Basis of Apportionment – Primary and Secondary Distribution –
Absorption of Overheads – Methods of absorption Preparation of Overheads Distribution Statement
– Machine Hour Rate – Computation of Machine Hour Rate.