- HD video classes
- About 100 hours of extensive coaching
- Most comprehensive class notes & books
- Discussion of past examinations questions
- Any amendments or updates or any discussion are uploaded regularly on youtube
- Solving doubts and query through numerous mode of communications
- Direct calls
- Whatsapp (call & message),
- Message through any social platform,
- Students can also visit the center directly.
- Separate helpline number for technical support
Paper 3: Cost and Management Accounting(CMA)
(One paper – three hours – 100 marks)
Level of Knowledge: Working knowledge
- To develop an understanding of the basic concepts and applications to establish the cost associated with the production of products and provision of services and apply the same to determine prices.
- To develop an understanding of cost accounting statements.
- To acquire the ability to apply cost information for cost ascertainment, planning, control, and decision making.
|S. No.||Particulars||Chapter No. in book|
|1.||Overview of Cost and Management Accounting|
- Introduction to Cost Accounting
- Objectives and scope of cost and management accounting
- The users of Cost and Management accounting information – Functions of management accounting
- Role of cost accounting department in an organization and its relation with other departments.
- Installation of Costing System
- Relationship of Cost Accounting, Financial Accounting, Management Accounting, and Financial Management.
- Cost terms and concepts
- Cost reduction and cost control
- Elements of costs
- Cost behavior pattern, Separating the components of fixed, variable, semi-variable and step costs.
- Methods of Costing, Techniques of Costing
- Cost Accounting with use of Information Technology
- Elements of costs and preparation of Cost Sheets
- Functional classification and ascertainment of cost
- Preparation of cost sheets for the manufacturing sector and for the service sector
Chapter – 1
|2.||Ascertainment of Cost and Cost Accounting System|
- Material Cost
- Procurement procedures – store procedures and documentation in respect of receipts and issue of stock, stock verification
- Valuation of material receipts
- Inventory control-
- Techniques of fixing the level of stocks – minimum, maximum, re-order point, safety stock, determination of an optimum stock level
- Determination of Optimum Order quantity – Economic Order Quantity (EOQ)
- Techniques of Inventory Control – ABC Analysis, Fast, Slow moving and non- moving (FSN), High, Medium, Low *HML), Vital, Essential, Desirable (VED), Just-in-time (JIT) – Stocktaking and perpetual inventory system, use of control ratios,
- Inventory accounting
- Consumption – identification with products of cost centers, the basis for consumption entries in financial accounts, monitoring consumption.
Chapter – 2
- Employee Cost
- Attendance and payroll procedures-
– Elements of wages – Basic pay, Dearness Allowance, Overtime, Bonus, Holiday and leave wages, Allowances, and perquisites
- Employee Cost control
- Employee Turnover – Methods of calculating employee turnover, causes an employee turnover, the effects of employee turnover
- Utilization of Human Resource, Direct and indirect employee Cost, charging of employee cost, identifying employee hours with work orders or batches or capital jobs
- Remuneration systems and incentive schemes-
- – Time Rate System, Piece Rate System, Differential piece rate system, Calculation of wages, Effective Wages.
|Chapter – 3|
- Direct Expenses
- Direct expenses
- Nature of Direct of Chargeable expenses
- Sub-contracting – control on material movements, identification with the main product or service.
|Chapter – 4|
- Functional analysis – factory, administration, selling, distribution, research and development
- Behavioral analysis – fixed, variable and semi-variable
- Allocation and Apportionment of overheads using Absorption Costing Method.
- Factory overheads – primary and secondary distribution
- Administration overheads – method of allocation to cost centers or products
- Selling and distribution overheads – analysis and absorption of the expenses in products/customers, the impact of marketing strategies, the cost-effectiveness of various methods of sales promotion.
- Treatment of Research and development cost in cost accounting
|Chapter – 4|
|(V) Concepts of Activity Based Costing (ABC)||Chapter – 8|
- Recording and Accounting of Costs
- Non-integrated Cost Accounting system – Ledger under a non-integral system
- Integrated (Cost and Financial) Accounting system – Ledgers under an integral system
- Difference between the Non-integrated and Integrated Accounting system
- Reconciliation of profit as per Cost and Financial Accounts (under Non- Integrated System).
|Chapter – 6|
Chapter – 7
|3.||Method of Costing|
(II) Job Costing
Job cost cards and databases, collecting direct costs of each job, attributing overhead costs to jobs, applications of job costing.
Chapter – 5
|(III) Batch Costing|
Determination of optimum batch quantity, Ascertainment of cost for a batch, Preparation of batch cost sheet, Treatment of spoiled and defective work
|Chapter – 5|
- Contract Costing
- Ascertainment of cost of a contract, Progress payment, Retention money, Escalation clause, Cost plus contract, Value of work certified, Cost of work not certified.
- Determination of value of cost certified, Cost of work not certified, Notional or Estimated profit from a contract
|Chapter – 9|
- Process/Operation Costing
- Process cost recording, Process loss, Abnormal gains and losses, Equivalent units of production, Inter-process profit, Valuation of work in process
- Joint Products- Apportionment of joint costs, Methods of apportioning joint cost over joint products.
- By-Products – Methods of apportioning joint costs over by-products, treatment of By-product cost
|Chapter – 10|
Chapter – 11
- Costing of Service Sectors
- Determination of costs and Prices of services of following sector\industries:
– Transport, Toll roads, Hospitals, Canteen/ Restaurants, Hotels/ Lodges,
|Chapter – 12|
|Educational Institutions, Financial Institutions/ Banks, Insurance, IT Sector and other services.|
| 4.||Budgets and Budgetary Control|
- Meaning of Budget, Essentials of Budget, Budget Manual, Budget setting process, Preparation of Budget and monitoring procedures.
- The use of budget in planning and control
- Flexible budget, preparation of a functional budget for operating and non-operating functions, Cash budget, Master budget
Introduction to Principal/ Key budget factor, Zero Based Budgeting (ZBB), Performance budget, Control ratios, and Budget variances.
|Chapter – 13|
|5.||Cost Control and Analysis|
- Standard Costing
- Setting up of standards, Type of Standards, Standard Costing as a method of performance measurement.
- Calculation and Reconciliation of Cost variances-
– Material cost variance, employee cost variance, Variable overheads variance and Fixed overhead variance.
|Chapter – 14|
- Marginal Costing
- Basic concepts of marginal costing, Contribution margin, Break-even analysis, Breakeven and profit volume charts, Contribution to sales ratio, Margin of Safety, Angle of incidence, Cost-Volume-Profit Analysis (CVP), Multi product break-even analysis, Consideration of Limiting factor (key factor)
- Determination of cost of a product/ service under marginal costing method, determination of cost of finished goods, work-in-progress,
- Comparison of Marginal costing with absorption costing method – Reconciliation of profit under both methods.
- Short-term decision making using the above concepts (basic/fundamental level).
|Chapter – 15|
Bank Account details are:
Name of Account Holder: Parag Gupta & Associates
Bank Name: Kotak Mahindra Bank
Account Type: Current Account
Branch Name: Yojna Vihar
Branch Address: A-23, Yojna Vihar, Delhi, 110092
IFSC / RTGS Code: KKBK0000211
UPI address- paraggupta@kotak
Sunil Keswani is a Fellow Member of “Institute of Chartered Accountants of India”. He is a first class commerce graduate from prestigious Delhi University. He completed the Master of Financial Analysis Program from “The Institute of Chartered Financial Analyst of India University” and got the designation of Chartered Financial Analyst. He had a bright academic career. He topped Delhi University by scoring 100% marks in Mathematics. He had also been awarded K.V. Chandramouli Memorial Prize for best paper in Mathematics by the prestigious “Institute of Chartered Accountants of India”. His teaching career began after his much appreciated spell at ICICI Bank. He has been guiding the students of CA, CS & CMA in the subject of Cost Accounting, Management Accounting and Financial Management for last 7 years in Delhi. He believes in the concept that “HARD WAY IS THE ONLY WAY AND IS EASIER”.