Costing - PE-II
1.    Basic concepts
(i) Distinguish between controllable costs and uncontrollable costs, cost control and cost reduction, cost allocation and cost absorption
(ii) Select a suitable unit of cost to be used in hospital, city bus transport, hotel
providing lodging facilities                               
(iii) Main objectives of introduction of a cost accounting system in a                    manufacturing organisation, the term cost center,    chargeable expenses and its treatment in cost   accounts.                               
(iv) Explicit costs vs. implicit costs.                                                     
2.  Materials
             (i) Duties of purchase dept
           (ii) Bin card vs. Stores ledger
          (iii) Pricing for entering in the stores ledger
    (iv) JIT in case of purchase
           (v) Reorder level & Reorder quantity
          (vi) Computation of EOQ/ROL in the normal situation and with varying purchase prices or trade discount.
         (vii) Computation of safety stock when stock out cost and carrying  cost are given and when these costs are not given.
        (viii) Preparation of Stores Ledger under FIFO/LIFO and weighted average method.
          (ix) Treatment of material losses in cost accounts.
           (x) ABC analysis for material control
          3.    Labour
           (i)    Computation of earnings of workers under Merrick,  Halsey, Emerson & Rowan Plans.
          (ii)    How Rowan plan strikes a balance between quality  and quantity of production (also prepare illustration on this topic).
         (iii)    Treatment of overtime premium in cost accounts.
         (iv)    Incentive schemes for indirect workers.
    (v)  Labour productivity and performance rating.
    (vi) Casual and out workers and night shift allowance.
    (vii) Methods of computing labour turnover
4.Factory Overheads
            (i)    Distinction among allocation, apportionment and  absorption of overheads.   
            (ii)Treatment(disposition) of under/over absorbed factory overheads  
          (iiii) Computation of machine hour rate including  comprehensive (composite) machine hour rate.
          (iv)    Treatment (accounting and control) of  administration, selling  distribution overheads in cost accounts.
          (vi)    Treatment of fringe benefits.
          (vii)    Preventive maintenance costs.
         (viii)    Treatment of Idle capacity costs.
          (ix)    Practical problems on the application of activity based costing.
         4.    Methods of costing.
           (i)    Preparation of Job, Batch, and Unit Cost Sheets
            (ii) Process Cost accounts with normal/abnormal loss/gain with inter-process profit and process stock  accounts.
           (iii) Valuation of Work-in-progress in process  accounts and concept of equivalent production  including intervening process.
          (iv)    Distinction between joint products and  by-products, and preparation of main product account.
          (v)    Uniform Costing-meaning, objectives, requisites, advantages & limitations etc.
        5. Cost Accounts System
Preparation of cost accounts under integrated system. Third entry method of                            integrating cost accounts and financial accounts.

           6 Short notes on the following important terms.
       (i) Fringe benefits
       (ii) Job evaluation and merit rating
       (iii) Advantages of cost audit,
       (iv) Costing principles
        (v) Discretionary costs
       (vi) Joint Costs
       (vii) Opportunity cost
      (viii) Profit Centre
       (ix) Value Analysis
       (x) Cost plus Contract.

Financial Management (FM)
(i)    Objectives/ Goals of Financial Management
(ii)    Estimating Working Capital requirements on Gross basis and Cash Cost basis for a                                      new company including double shift working. preparation of cash forecast. Miller-Orr Model
(iv) Liberalization of credit policy, setting up of lock box system.
(v)Computation of weighted average cost of capital including marginal cost of capital.
(vi)MM theory of Capital structure
(vii) Computation of Operating, Financial & Combined leverages with there relationship with   beta.
(viii)    Investment/Capital budgeting decision based on NPV/IRR
(viii)    Lease/Barrow decision
(ix)    Computation & Interpretation of
(a)    Profitability Ratios (Including Du Pont Chart)
(b)    Solvency Ratios
(c)    Liquidity Ratios
(d)    Turnover ratios
(e)    Misc Ratio i.e.  PE Ratio, Div Yield ratio etc.
(x)    Misc topics for numerical as well as a theoretical presentation :
1    Indifference Point,
2    Profitability index,
3    Factoring,
4    Forfeiting,
5    ADR,
6    GDR,
7    External Commercial barrowings, (ECB)
8    Euro Bonds
9    Commercial Papers.

Take Care
and Good luck for your Exams