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    CMA Intermediate Syllabus 2016 (Paper 8): Cost Accounting


    PAPER - 8: COST ACCOUNTING
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    1. INTRODUCTION TO COST ACCOUNTING
    2. COST ASCERTAINMENT - ELEMENTS OF COST
    3. COST ACCOUNTING STANDARDS
    4. COST BOOK KEEPING
    5. METHODS OF COSTING
    6. COST ACCOUNTING TECHNIQUES
    1. INTRODUCTION TO COST ACCOUNTING:
    a. Definition, Scope, objectives and significance of cost accounting, its relationship with financial accounting and management accounting
    b. Cost Objects, Cost centers and cost units
    c. Elements of cost
    d. Classification of costs
    2. COST ASCERTAINMENT - ELEMENTS OF COST:
    a) Material Costs:
    i) Procurement of Materials,
    ii) Inventory Management and Control,
    iii) Inventory Accounting & Valuation
    iv) Physical Verification, treatment of losses
    v) Scrap, spoilage, defectives and wastage.
    b) Employee Costs:
    i) Time keeping, Time booking and payroll,
    ii) Labour Turnover, Overtime and idle time
    iii) Principles and methods of remuneration and incentive schemes
    iv) Employee cost reporting and measurement of efficiency.
    c) Direct Expenses
    d) Overheads:
    i) Collection, classification and apportionment and allocation of overheads
    ii) Absorption and treatment of over or under absorption of overheads
    iii) Reporting of overhead costs
    3. COST ACCOUNTING STANDARDS (Basic Understanding only) (CAS 1 to CAS 23)
    4. COST BOOK KEEPING:
    a) Cost Accounting Records, Ledgers and Cost Statements
    b) Items excluded from cost and normal and abnormal items/cost
    c) Integral accounts
    d) Reconciliation of cost accounting records with financial accounts
    e) Infrastructure, Educational, Healthcare and Port services
    5. METHODS OF COSTING:
    a) Job Costing
    b) Batch Costing
    c) Contract Costing
    d) Process Costing – Normal and abnormal losses, equivalent production, Joint and By Products.
    e) Operating Costing or Service Costing – Transport, Hotel and Hospital
    6. COST ACCOUNTING TECHNIQUES: (Basic Understanding only)
    (A) Marginal Costing
    i) Meaning of Marginal Cost and Marginal Costing
    ii) Absorption Costing vs. Marginal Costing
    iii) Break-even analysis
    iv) Margin of safety
    v) Application of Marginal Costing for decision making (simple problems only)
    (B) Standard Costing & Variance Analysis
    i) Concept of standard cost and standard costing
    ii) Advantages and limitations
    iii) Computation of variances relating to material and labour costs only
    (C) Budget and Budgetary Control (simple problems only)
    i) Concepts, Types of Budgets
    ii) Budgetary Control Vs Standard Costing
    iii) Advantages and limitations
    iv) Preparation of Budgets (simple problems only)

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