Best IPCC Costing Theory Notes. Students Tip Students should prepare this chapter thoroughly from two view points, namely, one in every examination some marks are attributed to this chapter and two, unless students understand the concepts discussed here, they will not be able to grasp the following chapters easily. SYNOPSIS 2. Definition of Cost Accounting. Objectives of Cost Accounting. Importance of Cost Accounting. Advantages of Cost Accounting. Limitations of Cost Accounting. Reports Generated by Cost Accounting Department. Basic Considerations. Steps in Introduction. Essentials of a Good Cost Accounting System. Activity Based Costing Vs Job Order Costing Example' title='Activity Based Costing Vs Job Order Costing Example' />Difficulties in Introduction. Cost Accounting and Financial Accounting. Cost Accounting and Management Accounting. Cost. 6. 2 Pre determined Cost. Activity Based Costing Vs Job Order Costing Example' title='Activity Based Costing Vs Job Order Costing Example' />Standard Cost. Estimated Cost. 6. Marginal Cost. 6. Differential Cost. We have compiled the best research on how bigbox retailers and independent businesses affect communities and local economies. You will find summaries of the findings. Labor costs and materials costs are completely different entities, with two commonalities. Both types of costs can be deducted, and both are used to make a product or. You got the job Oh, but you dont want or need it anymore. What do you do What should you say So far, the US government has paid 1 billion to the GCF and the Russian government paid nothing citing the need to review and evaluate this hairraising financial. Discretionary Cost. Decision Driven Cost. Managed Policy Cost. Postponable Cost. Imputed Notional Cost. Inventoriable Product Cost. Opportunity Cost. Out of pocket Cost. Joint Cost. 6. 1. Period Cost. 6. 1. Sunk Cost. 6. 1. 8 Committed Cost. Shut down Cost. 6. Relevant Cost. 6. Replacement Cost. Absolute Cost. 6. Cost Centre. 6. 2. Al Jazeera Sport V2. Cost Unit. 6. 2. 5 Cost Allocation. Cost Apportionment. Cost Absorption. 6. Responsibility Centre. Material Cost. 7. Labour Cost. 7. 3 Expenses. Overheads. 8. 1 By Nature. By Behaviour. 8. 3 By Element. By Function. 8. 5 By Controllability. By Normality. 8. 7 By Time When Computed. Historical Costing. Uniform Costing. 9. Standard Costing. Direct Costing. 9. Marginal Costing. Absorption Costing. Difference Between Various Types of Costing. Job Costing. 10. 2 Batch Costing. Contract Costing. Process Costing. 10. Operating Costing. Single Output or Unit Costing. Multiple Costing. Scanning of Questions Asked in Past Examinations. Frequency Table Showing Distribution of Marks The Institute of Cost and Management Accountants of England defines Cost Accountancy as follows The application of costing and cost accounting principles, methods and techniques to the science, art and practice of cost control and the ascertainment of profitability. It includes the presentation of information, derived therefrom for the purpose of managerial decision making. Thus cost accountancy is a very comprehensive term. Definition of Cost Accounting Based on the terminology published by the Institute of Cost and Management. Accountants of England, Cost Accounting is defined as the process of accountingfor cost. This process begins with the recording of income and expenditure or the bases on which they are calculated and ends with the preparation of periodical statements and reports for the purpose of ascending and controlling costs. Objectives of Cost Accounting Following are the main objectives of Cost Accounting i Ascertainment of Cost It can be done in two ways, namely,a Post Costing, where the ascertainment of cost is done based on actual information as recorded in financial books. Continuous Costing, where the process of ascertainment is of a continuous nature i. Determination of Selling Price Though there are various other considerations for fixing the selling price of a product like the market conditions etc., cost of the product is an important factor which cannot be sidelined. Ascertainment of Profit The purpose of any business activity is to earn a profit and profit can be computed by matching the revenue and cost of that particular productactivity. Cost Control and Cost Reduction Cost Control and Cost Reduction are two different concepts. Cost Control aims at maintaining the costs in accordance with established standards. It involves the following steps Determination of target cost. Measurement of actual cost. Analysis of variation with respect to target cost. Initiation of corrective action. Cost Reduction on the other hand aims at improvement established targets. It is defined as the achievement of real and permanent reduction in the unit cost of goods manufactured or services rendered without impairing their suitability for the use intended or diminution in the quality of the product. The difference between Cost Cost Control and Cost Reduction can be summarized as under May9. Cost Control. Cost Reduction. It represents efforts made ds towards achieving a target or a goal. It represents achievement of  reduction of cost. The process of cost control is to Set up a target, investigate the variations and take remedial action. Cost reduction is not contended merely with the maintenance of performance with standards. It assumes existence of norms or Standards which are not challenged. It assumes that the standards can be improved. It is preventive function. It is a corrective function. Sometimes, it lacks a dynamic approach. It is continuous process of analysis of all the factors affecting cost. Facilitation of Inventory Valuation As per the Accounting Standard 2 on Valuation of Inventories, Inventories are to be valued at lower of cost and net realisable value. Costing accounting determines the ascertainment of this cost based on which the inventory is valued. Assisting Management in Decision making Decision making is a process of choosing between two or more alternatives, based on the resultant outcome of the various alternatives. A Cost Benefit. Analysis also needs to be done. All this can be achieved through a good cost accounting system. Importance of Cost Accounting The importance of cost accounting can be highlighted through the following benefits which accrue to any business concern i Control of Material Cost Normally, material cost constitutes a major portion of the cost of the product. Hence control of material cost can ensure a good amount of benefit. Control of material cost can be exercised as follows Maintaining optimum level of stock to avoid unnecessary locking up of capital. Maintaining an uninterrupted supply of materials. Use of techniques like value analysis, standardisation etc. Control of Labour Cost Labour cost control can be exercised as follows Setting standard time for each activity and keeping adverse variance to the minimum. Laying down proper remuneration schemes. Control over labour turnover. Control over idle time, overtimeiii Control of Overheads Overheads are nothing but indirect expenses incurred at the factory, office andsales depots. Again control over overheads will ensure a control over the total cost of the product and a higher profit margin. Determination of Selling Price Refer 2. Budgeting Any commercial activity begins with the preparation of budgets for the same. A budget serves as a guideline against which the actual performance can be measured and continuous corrective action can be taken to ensure that the budget is adhered to. Measuring Efficiency Efficiency can be measured by comparing actuals against standards and corrective action can be taken. Strategic Decision making Cost accounting enables the management to take up various strategic decisions like Make or Buy, Shut down or Continue, Replace or Continue, Status quo or Expansion etc. Activity Based Cost Management, Wiley 2. Vinh. Lans. Family e. BOOKSActivity Based Cost Management, Wiley 2. Published on Dec 1. ACTIVITY BASED COST MANAGEMENT This book is dedicated to the late Robert A. Bonsack, a friend, a mentor, and a craftsman in the field of adv. Corsair Mouse Mat.