1. COST & MANAGEMENT ACCOUNTING

2. BOOKS:  COST MANAGEMENT:- JAWAHAR LAL  COST MANAGEMENT:- RAVI K. KISHORE

3. Session Schedule  Total Session: 12 Sessions  Total marks: 100 marks  Written Examination: 60 marks  Internal Assessment: 40 marks  Test – 10 marks  Presentations - 20 Marks  Participation/ Attendance-10 marks

4. COST  Cost is the amount of expenditure incurred on or attributable to a given thing.  Fixed Cost  Variable cost

5. ELEMENTS OF COST  DIRECT COST  DIRECT MATERIAL  DIRECT LABOUR  DIRECT EXPENSES  INDIRECT COST (OVERHEADS)  INDIRECT MATERIAL  INDIRECT LABOUR  INDIRECT EXPENSES

6. FUNCTIONAL CLASSIFICATION  PRIME COST  FACTORY COST  COST OF SALES  TOTAL COST OF PRODUCTION

7. COST FOR DECISION MAKING  OPPORTUNITY COST- An opportunity cost is the benefit given up or sacrificed when one alternative is chosen over another. They are not recorded in the accounting system as they are not based on the past payment or commitments to pay in future.

8.  SUNK COST: A cost that has already been incurred. It is a past or committed cost which is gone for forever. It’s a historical cost.

9.  RELEVANT COST: Cost which differs between alternatives. Cost which may also be defined as the costs which are affected and changed by the decision.

10.  DIFFRENTIAL COST: It is the difference in total cost between any two alternatives. It is the only difference in amount of two cost.

11.  SHUT DOWN COST: Cost which have to be incurred under all situations in the case of stopping manufacture of a product or closing down a department or a division.

12.  CONTROLLABLE &NON CONTROLLABLE COST: A cost which can be influenced by the action of a specified member of an undertaking ( Controllable cost) A cost which cannot be influenced by the action of a specified member of an undertaking ( Non controllable)

13. MARGINAL COSTING According to Institute of Cost &Management Accountants London Marginal Cost represents “the amount of any given volume of output by which aggregate costs are changed if the volume of output is increased by one unit”

14. For example:  Cost of production of 1000 units =Rs.200,000  Cost of production for 1001 units=Rs.200,150  difference= Rs. 150 (Marginal Cost)

16.  Decipher this one: 7 I of I  Hint  There are also seven books in the set.

17.  Answer  7 Incarnations of Immortality

18.  Every now and then you cut my head Yet I don't complain but obey instead I am a way for your thoughts and feelings to be spread Despite the fact that I am totally dead A double edged weapon that is easily lead So don't always believe me: use your head

19.  Answer  The pencil. Cut my head: by sharpening Obey instead: write whatever you want Way for your thoughts and feelings to be spread: by expressing them through writing

20.  Can you decipher this phrase? ch poorri

21.  Hint  Think Robin Hood.

22.  Answer  Take from the rich and give to the poor.

23.  What phrase is shown below? The Hamburgler Horse Rustlers Bonnie & Clyde Honor Ali Baba The Great Train Robbers Billy the Kid

24.  Answer  Honour amongst thieves