JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD

22BBA402: COST AND MANAGEMENT ACCOUNTING

BBA (Data Analytics) IV Semester (R22)

Course Objectives:

To understand the functions, role, objectives and principles of cost accounting.
To learn the cost object, cost unit, types and characteristics of cost accounting.
To understand the capital project planning cycle, work breakdown and scheduling techniques.
To learn the cost control techniques and Pareto’s law.
To get the knowledge about material costing, labour costing and overhead costing for better cost management.

Course Outcomes:

To apply the cost accounting principles and methods in business.
To adopt the cost concepts and classify the cost centres for decision making.
Able to schedule, plan and estimation the of cost in projects.
Adopt different cost control techniques, time control and cost control cycle.
Able to analyse the cost incurred towards material, labour and overheads and its management.

UNIT - I: Overview of Cost Management

Introduction, Cost Accounting, Cost Accounting and Cost Accountancy, Functions, Role, Objectives, Advantages, Principles, Importance of cost accounting, Classification of cost accounting.

UNIT - II: Cost Concepts

Business and Cost Concepts, Cost of Product, cost, expenses and loss, Features of cost, cost object, cost unit and cost centre, types of cot centres, classification of costs, costing principles, components of Total Costs, Types of Costing System, Methods of Costing, Characteristics of Cost Information.

UNIT - III: Cost Plan

Capital project overview-the planning cycle, types of projects, project organization, the work breakdown structure, scheduling-project duration, the bar chart, process scheduling, network planning, precedence diagramming, resource planning, Capital Cost Estimating-estimating qualities, range estimating, estimating techniques.

UNIT - IV: Cost Control

Cost collection-basic accounting, cost vs cash, quantitative cost collection, Cost Control System- Definition and Concepts, the control cycle, objectives and requirements, cost information flow, Time control-scheduling Control system, Resource Levelling, Conventional Cost control, Pareto’s Law, Budgeting and Trending, Cost/Schedule Integration, the earned value concept, fast tracking.

UNIT - V: Elements of cost

Cost of Materials-Introduction, Scope of material costing, essential of material control procedure. Costing for Labour- Introduction, labour cost, classification of labour costs, labour cost records, methods of remuneration. Overheads-Direct expenses and Indirect expenses, Limitations of Direct expenses, Overheads, classification of Overheads.