Syllabus - Modified Scheme of Study

Managerial Level-1


(M1)FUNDAMENTALS OF COST & MANAGEMENT ACCOUNTING

PART - A WEIGHTAGE 20%
The Nature, Source and Purpose of Management Information
1. Introduction to costing and performance measurement
• Financial, Cost and Management Accounting Concepts
• The Concepts of Cost
• Cost Classification
• Cost Classification for Inventory Valuation and Profit Measurement
• Cost Classification for Control
• Performance Measurement
• Shareholder Value and Environmental and Social Concerns
2. Introduction to Management Accounting
• What is management accounting
• Definitions
• The changing role of management accounting
• Data and information
• The purpose of management information
• Sources and categories of information
• ICMA and its role in management accounting
3. Sources of data
• Types of Data
• Sources of Data
• Secondary Data
• Sampling
• Sampling Method
4. Cost classification
• Total Product/Service costs
• Direct Costs and Indirect Costs
• Functional Costs
• Fixed Costs and Variable Costs
• Production and Non-Production Costs
• Cost Codes
• Cost Units, Cost Objectives and Responsibility Centres
5. Cost Behavior
• Cost behavior and levels of activity
• Cost behaviors patterns
• Determining the fixed and variable elements of semi-variable costs
• Linear Equations and Graphs
PART - B WEIGHTAGE 20%
Cost Accounting Systems
6. Accounting for Materials
• What is inventory control
• Ordering, Receipt and Issue of Raw Materials
• Storage of Raw Materials
• Inventory Control Levels
• Accounting for Material Costs
• Inventory Valuation
• FIFO (First in First out)
• LIFP (Last in First out)
• AVCO (Average Cost)
7. Accounting for Labour
• Measuring labour activity
• Remuneration methods
• Recording labour costs
• Labour turnover
• Accounting for labour costs
8. Accounting for Overheads
• Overheads
• Overhead allocation
• Overhead apportionment
• Overhead absorption
• Blanket absorption rates and departmental absorption rates
• Over and under absorption of overheads
PART - C WEIGHTAGE 40%
Cost Accounting Techniques and Methods
9 Absorption and Marginal costing
• Absorption Cost
• Marginal Cost and Marginal Costing
• Principle of Marginal Costing
• Marginal Costing and Absorption Costing and the calculation of profit
• Reconciling Profit
• Marginal Costing versus Absorption Costing
10 Job, Batch and Service costing
• Costing Method
• Job Costing
• Batch Costing
• Service Costingv
11 Process costing
• The basics of process costing
• Losses in process costing
• Losses with scrap value
• Losses with a disposal cost
• Valuing closing work in progress
• Valuing opening work in process: FIFO method
• Valuing opening work in progress weighted average cost method
12 Process costing, joint products and by-products
• Joint products and by- products
• Dealing with common costs
• Joint products in process accounts
• Accounting for by products
PART - D WEIGHTAGE 20%
Standard Costing
13 Standard costing
• Standard costing
• Preparation of standards
• Uses of standard costing
• Other aspects of standard costing
14 Variance analysis
• Variances
• Direct material variances
• Direct labor variances
• Variable overhead variances
• Fixed overhead variances
• Reasons for cost variances
• Sales variances
• Operating statements
• Deriving actual data from standard cost details and variances
• Inter-relationships between variances
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