Cost & Management Accounting-II – B.S. Raman
COST AND MANAGEMENT ACCOUNTING–II
Chapter – I : Overheads :
Meaning – Collection of overheads – classification of overheads on the basis of functions, elements and behavior.
Allocation and apportioning overheads to Cost Centres (Departmentalisation of Overheads) Problems on Primary Distribution of factory overheads.
Chapter – II : Secondary Distribution of Overheads :
Meaning – Basis of Apportionment, Methods of reapportionment- Direct Distribution, Step-ladder method – Reciprocal Service Method, Simultaneous equation method and Repeated Distribution method. Problems on all the methods of secondary distribution.
Chapter – III : Absorption of Overheads :
Meaning – Methods of absorption : Percentage on direct material cost, direct labour cost, prime cost, direct labour hour rate and Machine hour rate. Problems on direct labour hour rate and machine hour rate.
Chapter – IV : Accounting for costs :
Non-Integrated Accounting System: Meaning, features, books maintained. Journal entries and ledger accounts.
Chapter – V : Integrated Accounting System :
Meaning, features, merits, limitations, Journal entries, and ledger Accounts.
Chapter – VI : Reconciliation of Cost and Financial Accounts :
Need for reconciliation, Reasons for disagreement in profit. Procedure for reconciliation.