Master the Language of Costs — From Concepts to Calculations!

Crafted for BCom First Semester students, this comprehensive textbook on Cost Accounting builds a strong foundation in one of the most practical and career-relevant subjects in commerce. With clear theory, step-by-step solved problems, and exam-focused practice questions, this book prepares you to understand, analyse, and apply cost accounting principles with confidence.

💼 Topics Covered

Unit I — Introduction to Cost Accounting

• Meaning, objectives, scope & importance of cost accounting
• Difference between cost accounting, financial accounting & management accounting
• Cost concepts — cost, costing, cost centre & cost unit
• Classification of costs — by nature, function, behaviour & controllability
• Elements of cost & cost sheet preparation

Unit II — Material Cost

• Purchasing, storage & issue of materials
• Inventory control techniques — EOQ, ABC analysis, VED analysis & JIT
• Methods of pricing material issues — FIFO, LIFO, Weighted Average & Standard Price
• Treatment of material losses — normal & abnormal waste

Unit III — Labour Cost

• Classification & control of labour costs
• Time keeping & time booking methods
• Wage payment systems — time rate, piece rate & incentive schemes (Halsey, Rowan, Taylor)
• Idle time, overtime & labour turnover — causes, effects & treatment

Unit IV — Overhead Cost

• Classification & collection of overheads
• Allocation, apportionment & absorption of overheads
• Machine hour rate & labour hour rate
• Under & over absorption of overheads — treatment & adjustment

Unit V — Methods of Costing

• Job costing — meaning, features & solved examples
• Contract costing — work-in-progress, profit recognition & retention money
• Process costing — normal & abnormal losses, inter-process profits
• Operating/Service costing — transport & hospital costing

✅ Key Features

• Concept-first approach — theory explained before numerical application
• Abundant solved numerical problems with clear step-by-step workings
• Chapter-end MCQs, short answer & university-style long answer questions
• Practical Indian business context with relevant industry examples
• Aligned with major Indian university syllabi (NEP 2020 compatible)
• Ideal for self-study, classroom use & semester exam preparation

From cost sheets and material control to process costing and overhead absorption, Cost Accounting equips BCom first-year students with the analytical skills and numerical accuracy to excel in their semester examinations and future careers in accounting & finance.