ADC-II Cost Accounting Syllabus – ADC IUB Syllabus

Week

Contents

Detailed Learning
Outcomes

Ø  1

Ø  Introduction
ofCost Accounting

Ø  Types
of cost

·        
Difference
between Financial Accounting and Cost Accounting

·        
Difference
between cost and management accounting

·        
Elements
of cost

·        
Classification
and behavior of various types of cost

·        
Describe
Variable, Fixed, Mixed, Step up, incremental Fixed, historic direct,
indirect  and other types of costs with
examples

Ø  2

Ø  Cost
Accounting for

Financial Statements

·        
Construct  the Cost of Goods Manufactured and Sold
Statement

·        
Treatment
of cost elements in the Income statement

·        
Treatment
of cost elements in the Balance sheet

Ø  3

Ø  Cost
of Goods Sold

·        
Explain
the meaning and importance of cost of goods sold

·        
Learn
to prepare condensed profit and loss statement

Ø  4

Ø  Cost
of Goods Sold

·        
Learn
to calculate and build the statement of cost of goods sold

Ø  5

Ø  Factory
Over Heads

·        
Understand
and distinguish the nature of factory overheads

·        
Understand
the control and classification of FOH

·        
Calculate
the overhead rate using a unit of production method, direct material cost basis,
direct labor hours basis, Machine hour basis, prime cost basis, and activity
basis

·        
Calculate the budgeted and actual application of FOH

·        
Calculate
and interpret over and under application of FOH

6

Ø  Costing
for Labor

·        
Understand
various terms and concepts of labor costing

·        
Understand
various methods for controlling labor costs

·        
Distinguish
between direct and indirect labor costs

·        
Understand
the concept of payroll system

Ø  7

Ø  Costing
for Labor

·        
Calculate
labor costs using different compensation methods

·        
Explain
different labor incentive techniques

·        
Calculate
incentives using various incentive methods

Ø  8

Ø  Revision

Ø  9

Ø  Costing
for Materials

·        
Explain
and calculate material cost through the help of the following concepts

o   Purchase Cost

o   Order cost

o   Carrying cost

o   Economic Order Quantity (EOQ)

o   Average inventory

o   Safety stock

o   Maximum and minimum order level

o   Re-order level

Ø  10-11

Ø  Cost
Production Report

·        
Calculate
and understand:

o   Unit cost transferred from the previous department

o   Unit cost added by the department

o   Cost of beginning and ending work in
process

o   Cost of finished goods transferred

·        
Treatment
for normal and abnormal loss

·        
Identify
any increase in units and the subsequent cost adjustment

Ø  12

Ø  Inventory
Valuation

·        
Explain
the various types and application of various stock valuation methods

·        
Calculate
the inventory value using the following methods

o   First In First Out (FIFO)

o    Last In First Out (LIFO)

o   Average Costing (AVCO)

Ø  13-14

Ø  Process
Costing

·        
Introduction
of process costing and its application in manufacturing companies

·        
Calculation
of the cost using process costing through the calculation of normal and
abnormal loss.

·        
Advantages
and disadvantages of process costing

Ø  15

Ø  Flow
of Cost

·        
Journal
entries tracing cost in the transaction and manufacturing process of the company

·        
Maintaining
factory and head office cost accounts separately

·        
Learn
to prepare and incorporate cost measurements in the General ledger and factory
ledger

Ø  16

Ø  Revision