...MANAGEMENT ACCOUNTING Study Material Prepared By INSTITUTE OF COST AND WORKS ACCOUNTANTS OF INDIA for Junior Accounts Officer(Civil) Examination Conducted By CONTROLLER GENERAL OF ACCOUNTS 1 BASICS OF COST ACCOUNTING 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 ♦ ♦ Evolution of Cost Accounting, Cost Concepts and Cost Classification Introduction Evolution of Cost Accounting Financial Accounting and Cost Accounting Management Accounting Financial, Cost and Management Accounting Cost Concept and Cost Object Cost Management Cost Classification Methods of Costing Techniques of Costing Specific Cost Systems Cost Department and its relationship with other Departments Installation of Costing System Specimen Questions with Answers Test Yourself Page . No 1 1 2 3 4 .5 6 7 10 12 13 14 16 17 18 20 1.0 EVOLUTION OF COST ACCOUNTING, COST CONCEPTS AND COST CLASSIFICATION 1.1 INTRODUCTION Traditionally, cost accounting is considered as the technique and process of ascertaining costs of a given thing. In sixties, the definition of cost accounting was modified as ‘the application of costing and cost accounting principles, methods and techniques to the science, art and practice of cost control and ascertainment of profitability of goods, or services’. It includes the presentation of information derived therefrom for the purpose of managerial decision making. It clearly emphasises the importance of cost accountancy achieved during the period by using cost concepts in more and...
Words: 102642 - Pages: 411
...ACCOUNTING Study Material Prepared By INSTITUTE OF COST AND WORKS ACCOUNTANTS OF INDIA for Junior Accounts Officer(Civil) Examination Conducted By CONTROLLER GENERAL OF ACCOUNTS 1 BASICS OF COST ACCOUNTING 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 Evolution of Cost Accounting, Cost Concepts and Cost Classification Introduction Evolution of Cost Accounting Financial Accounting and Cost Accounting Management Accounting Financial, Cost and Management Accounting Cost Concept and Cost Object Cost Management Cost Classification Methods of Costing Techniques of Costing Specific Cost Systems Cost Department and its relationship with other Departments Installation of Costing System Specimen Questions with Answers Test Yourself Page . No 1 1 2 3 4 .5 6 7 10 12 13 14 16 17 18 20 ♦ ♦ 1.0 1.1 EVOLUTION OF COST ACCOUNTING, COST CONCEPTS AND COST CLASSIFICATION INTRODUCTION Traditionally, cost accounting is considered as the technique and process of ascertaining costs of a given thing. In sixties, the definition of cost accounting was modified as ‘the application of costing and cost accounting principles, methods and techniques to the science, art and practice of cost control and ascertainment of profitability of goods, or services’. It includes the presentation of information derived therefrom for the purpose of managerial decision making. It clearly emphasises the importance of cost accountancy achieved during the period by using cost concepts...
Words: 102642 - Pages: 411
...Unit 1 Introduction to Financial Accounting Learning Outcome After reading this unit, you will be able to: • Explain succinctly financial accounting concepts • Elucidate on different principles of financial accounting • Explicate the importance and scope of financial accounting • Understand Generally Accepted Accounting Principles(GAAP) • Identify limitations of Financial Accounting Time Required to Complete the unit 1. 2. 1st Reading: It will need 3 Hrs for reading a unit 2nd Reading with understanding: It will need 4 Hrs for reading and understanding a unit 3. 4. 5. Self Assessment: It will need 3 Hrs for reading and understanding a unit Assignment: It will need 2 Hrs for completing an assignment Revision and Further Reading: It is a continuous process Content Map 1.1 1.2 1.3 1.4 1.5 1.6 Introduction Role of Financial Accounting Principles of Financial Accounting Importance of Financial Accounting Benefits of Financial Accounting Limitations of Financial Accounting 1 Accounting for Managers 1.7 1.8 1.9 1.10 1.11 1.12 Accounting Principles Accounting Concepts and Conventions Accounting Standards in India and International Accounting Standards Summary Self-Assessment Test Further Reading 2 Accounting for Managers 1.1 Introduction Financial accountancy (or financial accounting) is the field of accountancy concerned with the preparation of financial statements for decision makers, such as stockholders, suppliers, banks, employees, government agencies...
Words: 48652 - Pages: 195
...Unit 1 Introduction to Financial Accounting Learning Outcome After reading this unit, you will be able to: • Explain succinctly financial accounting concepts • Elucidate on different principles of financial accounting • Explicate the importance and scope of financial accounting • Understand Generally Accepted Accounting Principles(GAAP) • Identify limitations of Financial Accounting Time Required to Complete the unit 1. 2. 1st Reading: It will need 3 Hrs for reading a unit 2nd Reading with understanding: It will need 4 Hrs for reading and understanding a unit 3. 4. 5. Self Assessment: It will need 3 Hrs for reading and understanding a unit Assignment: It will need 2 Hrs for completing an assignment Revision and Further Reading: It is a continuous process Content Map 1.1 1.2 1.3 1.4 1.5 1.6 Introduction Role of Financial Accounting Principles of Financial Accounting Importance of Financial Accounting Benefits of Financial Accounting Limitations of Financial Accounting 1 Accounting for Managers 1.7 1.8 1.9 1.10 1.11 1.12 Accounting Principles Accounting Concepts and Conventions Accounting Standards in India and International Accounting Standards Summary Self-Assessment Test Further Reading 2 Accounting for Managers 1.1 Introduction Financial accountancy (or financial accounting) is the field of accountancy concerned with the preparation of financial statements for decision makers, such as stockholders, suppliers, banks, employees, government agencies...
Words: 48652 - Pages: 195
...i MANAGERIAL ACCOUNTING QCF Level 5 Unit Contents Chapter Title Introduction to the Study Manual Unit Specification (Syllabus) Coverage of the Syllabus by the Manual 1 Management Accounting and Information Introduction Management Accounting Information Collection and Measurement of Information Information for Strategic, Operational and Management Control Information for Decision Making Cost Categorisation and Classification Introduction Some Introductory Definitions Categorising Cost to Aid Decision Making and Control Management Responsibility Levels Cost Units Cost Codes Patterns of Cost Behaviour Influences on Activity Levels Numerical Example of Cost Behaviour Direct and Indirect Costs Introduction Material Costs Labour Costs Decision Making and Direct Costs Overhead and Overhead C Absorption Costing Introduction Definition and Mechanics of Absorption Costing Cost Allocation Cost Apportionment Overhead Absorption (OAR) Under and Over Absorption of Overheads Treatment of Administration and Selling and Distribution Overhead Uses of Absorption Costing Page v vii ix 1 2 2 4 6 11 14 17 18 19 21 26 27 28 29 30 30 33 34 34 38 43 43 45 46 46 47 48 52 57 59 60 2 3 4 © ABE ii Chapter Title 5 Marginal Costing Introduction Definitions of Marginal Costing and Contribution Marginal Versus Absorption Costing Effect of Absorption Costing and Marginal Costing on Profit Application of Marginal and Absorption Costing Activity-Based and Other Modern Costing Methods Introduction...
Words: 98805 - Pages: 396
.................. 2 1.1. The Basic Concepts of Budget and Budgeting ................................................................ 2 1.2. Definition of Budget ........................................................................................................ 3 1.3. Budgeting and Forecasting .............................................................................................. 4 1.4. Budgeting and Management ............................................................................................ 6 1.5. Budgeting and Planning ................................................................................................... 6 1.5.1 Purposes of Planning and Budgeting systems ................................................................. 7 1.5.2 Limitation of Budgeting................................................................................................. 10 1.5.3 Planning Cycles ............................................................................................................. 11 1.6. Budgeting process (Budget cycle) ................................................................................. 14 1.6.1 Designing the budget ..................................................................................................... 15 1.6.2 Steps in Budgeting Process- Participatory approach ..................................................... 15 1.6.3 Characteristics of a Budget ................................................
Words: 44956 - Pages: 180
...LESSON 1 INTRODUCTION TO ACCOUNTING Contents 1.0 Aims and Objectives 1.1 Introduction 1.2 Book- Keeping 1.2.1 Meaning 1.2.2 Definition 1.2.3 Objectives 1.3 Accounting 1.3.1 Meaning 1.3.2 Definition 1.3.3 Objectives 1.3.4 Importance 1.3.5 Functions 1.3.6 Advantages 1.3.7 Limitations 1.4 Methods of Accounting 1.4.1 Single Entry 1.4.2 Double Entry 1.4.3 Steps involved in double entry system 1.4.4 Advantages of double entry system 1.5 Meaning of Debit and Credit 1.6 Types of Accounts and its rules 1.6.1 Personal Accounts 1.6.2 Real Accounts 1.6.3 Nominal Accounts 1.7 Distinction between Book Keeping and Accounting 1.8 Branches of Accounting 1.8.1 Financial Accounting 1.8.2 Cost Accounting 1.8.3 Management Accounting 1.9 Let us Sum Up 1.10 Lesson-End Activities 1.11 Check your Progress 1.12 Points for Discussion 1.13 References 1.0 AIMS AND OBJECTIVES i) ii) To know the Meaning ,Definition and objective of Book- Keeping To study the objectives, functions, importance and limitations of Accounting iii) To understand the methods of Accounting, kinds of Accounts and Accounting rules. This watermark does not appear in the registered version - http://www.clicktoconvert.com 1 iv) To study the difference between Book- keeping and Accounting v) To study the various branches of Accounting 1.1 INTRODUCTION In all activities (whether business activities or non-business activities) and in all organizations (whether business organizations like a manufacturing entity or trading...
Words: 97819 - Pages: 392
...to find valuable student learning material including: G G G G Multiple choice questions to help test your learning Extra question material Links to relevant sites on the web Glossary explaining key terms mentioned in the book We work with leading authors to develop the strongest educational materials in Accounting, bringing cutting-edge thinking and best learning practice to a global market. Under a range of well-known imprints, including Financial Times Prentice Hall, we craft high quality print and electronic publications which help readers to understand and apply their content, whether studying or at work. To find out more about the complete range of our publishing please visit us on the World Wide Web at: www.pearsoned.co.uk ACCOUNTING FOR NON-ACCOUNTING STUDENTS Eighth Edition John R. Dyson Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies throughout the world Visit us on the World Wide Web at: www.pearsoned.co.uk First edition published in Great Britain under the Pitman Publishing imprint in 1987 Second edition 1991 Third edition 1994 Fourth edition published under the Financial Times Pitman Publishing imprint in 1997 Fifth edition 2001 Sixth edition 2004 Seventh edition 2007 Eighth edition 2010 © Pearson Professional Limited 1987, 1991, 1994, 1997 © Pearson Education Limited 2001, 2004, 2007, 2010 The right of John R. Dyson to be identified as author of this work has been asserted by him in accordance with...
Words: 200572 - Pages: 803
...fundamentals of cost accounting fourth edition William N. Lanen Shannon W. anderson Michael W. Maher ® accounting The integrated solutions for Lanen/Anderson/Maher’s Fundamentals of Cost Accounting, 4e have been proven to help you achieve your course goals of improving student readiness, enhancing student engagement, and increasing their comprehension of content. Known for its clear and engaging style, the Lanen solution employs the use of real-world scenarios, LearnSmart, and instant feedback on practice problems to help students engage with course materials, comprehend the content, and achieve higher outcomes in the course. Our new Intelligent Response Technology-based content offers students an intelligent homework experience that helps them stay focused on learning instead of navigating the technology. Finally, McGraw-Hill’s adaptive learning component, LearnSmart, provides assignable modules that help students master core concepts and come to class more prepared. LearnSmart with Lanen is an introductory managerial accounting review, providing students with a refresher on these topics for their cost accounting course. PROVEN EFFECTIVE Get Connected. FEATURES Intelligent Response Technology Intelligent Response Technology (IRT) is Connect Accounting’s new student interface for end-of-chapter assessment content. Intelligent Response Technology provides a general journal application that looks and feels more like what you would find in a general ledger...
Words: 233973 - Pages: 936
...interscience.in Development of Product Costing Module in ERP for L&T Kansbahal Works, Kansbhal, Orissa : A Case Study 1 Seema G. Bhol, 2Arun Mishra & 3Srikanta Patnaik Sambalpur University, Burla, Orissa, India, 2Head (IT Services), L&T, Kansbhal, Orissa, India, 3 Department of Computer Science ITER , SOA University , Bhubaneswar, Orissa, India E-mail : guptaseema@hotmail.com, arun-kbl@kbl.ltindia.com, patnaik_srikanta@yahoo.co.in 1 Abstract - One need to be very accurate in what the products and services are costing. Inaccurate cost components could cost an organization more dearly. So, to full fill our present and future requirements and ambitions in all respect of life, it is essential enhance our expertise to link the power of today's information technology with the tools of economic theory and business strategy.[2] This paper aims at throwing new lights on various developments and formulate strategy for their implementation. Keywords— Business Mapping Report (BMR), Product costing, Dataflow Diagram, Enterprise Resources Planning (ERP), cost overhead, cost centres, Cost variance report, WIP. . 1. INTRODUCTION businesses, non-profit organizations and governments now all utilize ERP systems. The use of erp module saves time and money without sacrificing accuracy and control. Product costs are analysed quickly and accurately, which empowers the organization with the ability to perform minute analysis and projections of product cost. Few of the many advantages of product costing are:...
Words: 8613 - Pages: 35
...Done By: Maggie Bilal Bawab Instructor: Mohammad El-Haj Senior Project: Fall 2014-2015 Feasibility Study for Clothes Manufacturing Dedication I dedicate this project to my deceased father. He was always an inspiration to me, spiritually, personally and professionally. He has been the backbone to my achievement and accolades in all endeavors. He has constantly taught me the value of prayer, time, life, friends, school and work… Through the years I have learned many lessons from him, specifically: patience and credibility. I also dedicate this project to my instructor. He was base and the peak of my enclosed pyramid like studies. Acknowledgement I would like to thank all my friends throughout my study years. I studied with them, enjoyed free time together, and helped one another. I also thank all my instructors for teaching us new information and new studies. Also, for learning from them life experiences and knowledge. In addition, I would like to thank my parents and my family for raising me, teaching me and standing beside in every level in my life. Table of Contents Abstract ……………………………………………………………………………………..10 Executive Summary …………………………………………………………………………11 Chapter1: Introduction……………………………………………………………………….12 1.0 Background ………………………………………………………………………….12 1.1 Brief Description of the project………………………………………………………12 1.2 Objectives ……………………………………………………………………………13 1.3 Mission ……………………………………………………………………………...
Words: 10632 - Pages: 43
...broad areas of inventory management, namely; demand forecasting, inventory models and warehousing. • Apply inventory control models in day to day business management. B. COURSE CONTENTS LECTURE 1: INTRODUCTION TO INVENTORY MANAGEMENT 1. Introduction 2. Objectives 3. The Concepts of Inventory and Inventory Management 4. Need for Inventory 5. Importance of Inventory Management 6. Scope of Inventory Management 7. Inventory Costs 8. Summary 9. References LECTURE 2: INVENTORY CONTROL SYSTEMS 2.1 Introduction 2.2 objectives 2.3 Fixed Quantity System 2.31 Advantages 2.32 Disadvantages 2.4 Fixed Time System 2.41 Advantages 2.42 Disadvantages 2.5 Hybrid Systems 2.6 Summary LECTURE 3: DEMAND FORECASTING I 3.1 Introduction 3.2 objectives 3.3 meaning of demand forecasting 3.4 Qualitative Judgmental Techniques 3.31 Delphi Method 3.32 Market Survey 3.33 Historical Analogy 3.5 Quantitative methods 3.51 Causal Methods 3.5.1.1 High-Low Method Advantages Disadvantages 3.5.1.2 Visual Fit Method Advantages Disadvantages 3.5.1.3 Simple Regression Analysis Derivation of the Normal Equations Derivation of the Ordinary Least Squares Equation 3.52 Time Series Analysis 3.5.2.1 Components of a time Series 5.32 Naïve method 5.321 Advantages 5.322 Disadvantages 5.33 General Moving Averages 5.331 Advantages 5.332 Disadvantages 5.34 Exponential Smoothing 5.341 Advantages 5.342 Disadvantages Summary LECTURE 4: DEMAND...
Words: 31485 - Pages: 126
...Chapter 10 Strategy and the Master Budget Cases 10-1 Emerson Electric Company © Joseph San Miguel, reprinted with permission. 10-2 LetsGo Travel Trailers (Source: “LetsGo Travel Trailers: A Case for Incorporating the New Model of the Organization into the Teaching of Budgeting,” by Sally Wright, Cases from Management Accounting Practice, Vol. 14, Montvale, NJ: Institute of Management Accountants, 1998). Note that part 2 of this case requires the use of Excel. 10-3 Building Processes for a Solid Foundation: The Case of Community Health Initiatives (Source: Sandra Richtermeyer, Strategic Finance, August 2007, pp. 52-57. Note: this case was the case used as the 2008 IMA Student Case Competition. The Student Case Competition is sponsored annually by the IMA to provide an opportunity for students to interpret, analyze, evaluate, synthesize, and communicate a solution to a management accounting problem.) 10-4 Academic Advising at Bay State (Source: Janice E. Bell and Shahid L. Ansari, Strategic Finance, September 2008, pp. 44-51. Note: this case was the case used as the 2009 IMA Student Case Competition. The Student Case Competition is sponsored annually by the IMA to provide an opportunity for students to interpret, analyze, evaluate, synthesize, and communicate a solution to a management accounting problem.) Readings 10-1: “How to Set Up a Budgeting and Planning System” by Robert N. West and Amy M. Snyder, Management Accounting (January 1997)...
Words: 28910 - Pages: 116
...“BHARAT HEAVY ELECTRICALS LIMITED & THE STUDY OF MARKET POTENTIAL FOR CONTROL EQUIPMENTS AT BHEL” Dissertation Submitted to the ALAGAPPA UNIVERSITY in partial fulfillment of the requirements for the award of the Degree of MASTER OF BUSINESS ADMINISTRATION SUBMITTED BY CHAKRAPANI AWASTHI Enrollment No:-083173871 [pic] Project Guide Mr.-Manohar Ramesh MBA NIILM School of Business Bangalore-560025 DIRECTORATE OF DISTANCE EDUCATION ALAGAPPA UNIVERSITY KARAIKUDI – 630 003 JUNE 2010 DECLARATION I hereby declare that the dissertation market potential for control equipment’s at BHELsubmitted for the MBA (General) degree is my original work and the dissertation has not formed the basis for the award of any Degree, Associate Ship, Fellowship or any other similar titles. Place:-Bangalore Date:-30 June 2010 Signature of the Student GUIDE CERTIFICATE This is to certify that the dissertation entitled “THE STUDY OF MARKET POTENTIAL FOR CONTROL EQUIPMENTS AT BHEL” is a bonafied research work carried out by CHAKRAPANI AWASTHI & ENROLLEMENT NO. 083173871 of MBA (General) in partial fulfillment of the requirements for the award of the degree of Master of Business Administration ( General ) and that the dissertation has not found the basis for the award...
Words: 15756 - Pages: 64
...to, in any network or other electronic storage or transmission, or broadcast for distance learning. Some ancillaries, including electronic and print components, may not be available to customers outside the United States. This book is printed on acid-free paper. 1 2 3 4 5 6 7 8 9 0 WVR/WVR 1 0 9 8 7 6 5 4 3 2 1 0 ISBN MHID 978-0-07-352711-6 0-07-352711-4 Vice president and editor-in-chief: Brent Gordon Editorial director: Stewart Mattson Publisher: Tim Vertovec Director of development: Ann Torbert Development editor: Emily A. Hatteberg Vice president and director of marketing: Robin J. Zwettler Marketing director: Sankha Basu Marketing manager: Kathleen Klehr Vice president of editing, design and production: Sesha Bolisetty Senior project manager: Susanne Riedell Senior production supervisor: Debra R. Sylvester Interior designer: JoAnne Schopler Senior photo research coordinator: Jeremy Cheshareck Senior media project manager: Allison Souter Cover design: JoAnne Schopler Typeface: 10.5/12 Times New Roman Compositor: MPS Limited, A Macmillan Company Printer: World Color Press Inc. Library of Congress Cataloging-in-Publication Data Lanen, William N. Fundamentals of cost accounting / William N. Lanen, Shannon W....
Words: 73102 - Pages: 293
