Cost and Management Accounting
Course Title: Cost and Management Accounting
Course Code: MGT 131
Area of Study: Core
Credit Hour: 3
Course Objectives: The course gives knowledge of basic cost concepts, elements of cost and methods and
techniques of costing.
UNIT I: Introducing L.H.5
Objectives of costing system; cost concepts and cost classification; management accounting – nature and scope;
role of management accountant, tools and techniques of management accounting; distinction between financial
accounting, cost accounting and management accounting
UNIT II: Elements of cost: L.H.12
Material cost – purchase procedures, store keeping and inventory control, ROQ, fixing of minimum, maximum
and re-order levels. ABC analysis, pricing of receipts and issue of material under LIFO and FIFO method and
Labour cost – classification of labour costs, payroll procedures, monetary and non-monetary incentive schemes
(Halsey, Rowan, Teller and Gantt Approach), Labour and remedial measures.
Overheads – nature, classification, allocation, apportionment, absorption and control of overheads.
UNIT III: Contract Costing L.H.7
Meaning and concept; Accounting procedure of contract costing
PURBANCHAL UNIVERSITY, Faculty of Management
Bachelor of Business Administration
UNIT IV: Process Costing L.H.7
Meaning; Accounting treatment of process costing and inter-process profit.
UNIT V: Budgetary Control L.H.7
Concept, Advantages and Limitations of Budgets, Preparation of functional budgets
UNIT VI: Absorption costing and Marginal Costing L.H.5
Concept, Applications, Comparative Income Statement, Reconciliation Statement
UNIT VII: Cost-Volume Profit Analysis L.H.5
Meaning, Applications, Break-even Analysis, (Single and Product mix), Margin of safety
1. Horngren, Datar, Foster, Cost Accounting, A Managerial Emphasis, Eleventh edition, Pearson
Education Pvt. Ltd., New Delhi.
2. Lal, Jawahar, Cost Accounting: Tata McGraw Hill Publishing New Delhi.
3. M. Singh Yamesh, Ojha Khagendra, Acharya Chiranjibi Cost and Management Accounting, Buddha
Academic Publisher and Distributors Pvt. Ltd. Ktm, Second Edition 2004
4. M N Arora, A Textbook of Cost and Management Accounting, 9th edition, Vikas Publishing House,
5. Ray H. Garison: Managerial Accounting, Concept for Planning, Control & Decision Making 6
Edition Irwin, Boston
6. Khan, MY and Jain PK: Management Accounting, Tata McGraw Hill, 2009
7. Dangol R., Cost and Management Accounting, Taleju Prakasan.