CWA ICWA Intermediate : Group II - Cost and Management Accounting

ICWAICWA ICWA (2008)InterSyllabus and Books • Group II - Cost and Management Accounting

ICWA :: Intermediate
Paper 8 : Cost & Management Accounting
[One Paper: 3 hours:100 marks]

Objective . . .

To understand basic concept, processes used to determine product cost
To gain knowledge of preparation of budgets , standard costs and variance statements
To gain skill for controlling cost and decision making

1.Basic aspects of Cost Accounting15%
Cost Concepts and Classification of costs
Materials: accounting and control systems procedures and techniques
Labour: accounting, incentive schemes and control systems and procedures
Direct Expenses
Indirect expenses: allocation, apportionment, re-apportionment and absorption of overhead costs.
Cost Accounting Standards.
2.Cost Accounting Methods and systems20%
Job, batch, contract and process costing.
Cost accounting for service sector
Accounting entries for an integrated accounting system – cost ledgers
Reconciliation between cost and Financial profit and loss account.
Interlocking accounting
3.Decision Making Tools20%
Marginal costing, break even analysis and its applications in decision making
Absorption costing as a system of profit reporting and stock valuation.
Throughput accounting as a system of profit reporting and stock valuation.
Activity-based costing for profit reporting and stock valuation.
Integration of standard costing with marginal cost accounting, absorption cost accounting and throughput accounting.
Process costing including establishment of equivalent units in stock, work-in-progress and abnormal loss accounts and use of various methods like first-in-first-out, average cost and standard cost methods of stock valuation.
Budget Concepts and Preparation
Fixed and Flexible Budgets
Time series analysis including moving totals and averages, treatment of seasonality, trend analysis using regression analysis and the application of these techniques in forecasting product and service volumes.
Fixed, variable, semi-variable and activity-based categorizations of cost and their application in projecting financial results.
Zero base budgeting
5.Standard Costing15%
Manufacturing standards for material, labour, and overhead.
Price/rate and usage/efficiency variances for materials, labour and overhead. Further subdivision of total usage/efficiency variances into mix and yield components.
Fixed overhead variances.
Planning and operational variances.
Sales price and sales revenue/margin volume variances (calculation of the latter on a unit basis related to revenue, gross margin and contribution margin). Application of these variances to all sectors, including professional services and retail analysis.
Interpretation of variances: interrelationship, significance.
Benchmarking for setting standards
6.Costing and performance management10%
Business performance measurement for performance improvement
7.Recent trends in cost and Management Accounting5%

Recommended Books

A Text Book of Cost AccountancyM.N.AroraVikas Publishing Pvt., Ltd.
Cost Accountaing: Method & ProblemsB.K.BharAcademic Publishers
Cost Accounting-A Managerial EmphasisHorngren, Foster & DaterPrentice Hall
Cost AccountingN.K.Prasad & A.K.PrasadBook Syndicate
Cost Accounting Bhabatosh BanerjeeWorld Press
Fundamental Managerial Accounting ConceptEdmonds, Edmonds And Tsay Irwin McGraw Hill
Principles and Practice of Cost AccountingAsish BhattacharyaSultan Chand
Management AccountingR.S.N.Pillai & BhagavatiS.Chand
Cost AccountingMoriarity and AllenJohn Wiley
Advanced cost and ManagementV.K.Saxena & C.D. VashistSultan Chand & Sons
Cost Accounting – Theory and PracticesBhabatosh BanerjeeSultan Chand & Sons
Advanced Cost & Management Accounting-Problems & Solutions V.K.Saxena & C.D.Vashist Prentice Hall of India(p) Ltd.
Cost Accounting R.S.N.Pillai & Bhagavati S.Chand
Studies in Cost ManagementS.N.MaheshwariSultan Chand & Sons
Cost and Management AccountingM.E.Thukaram RaoNew Age International
Management AccountingM.E.Thukaram RaoNew Age International