Description

SYLLABUS

MODULE – I:

(1)     Process Costing:

• Introduction: Features of Process, concept of Process Loss, Abnormal Loss, Normal Loss, Abnormal Gain.
• Computation of Inter-Process Profit: Advantages and Disadvantages, Computation of Equivalent Production – Weighted Average and FIFO.

(2)     Cost Allocation and Activity Based Costing Systems:

• Cost Allocation: Meaning and Its Types, Relationship between resources, Activities, Cost and Cost Drivers, Methods of Allocating Central Costs – Cost Allocation Using Direct Method, Step Down Method and Reciprocal Method.
• Activity Based Costing: Introduction, Advantages, Limitations, Identification of Cost Drivers, Practical Problems on Traditional V/s Activity Based Costing System.

MODULE – II:

(3)     Responsibility Accounting:

• Responsibility Accounting: Meaning, Features, Objective, Assumptions, Problems, Responsibility Centre’s – Cost, Profit, Revenue and Investment.
• Concept of Controllability: Introduction, Measuring Managerial Performance (ROI and Residual Income Approach), Preparation of Managerial Reports using Segmented Costs and Controllable Costs Approach.

(4)     Strategic Cost Management:

• Transfer Pricing: Introduction, Advantages and Disadvantages, Setting Transfer Pricing – Negotiated Transfer Pricing, Cost Based Transfer Pricing.
• Target Costing: Introduction, Concept, Objectives, Comparison between Target Costing and Cost Plus Pricing. Inflation Accounting – Meaning, Features, Conversion of Income Statement, Balance Sheet, Stocks and Net Assets Block using Current Purchasing Power Method.