Objective: To provide a conceptual framework of cost determination and understanding on the utility, relevance and application of cost data for control and decision making.

1. Development of Cost accounting: Role of accounting information in planning and control; Interfaces of cost accounting; Financial accounting and managerial accounting; Cost concepts.
2. Cost Analysis and Control: Pricing of issues and material cost control. Labour accounting and control. Overheads Classification. Collection, allocation and absorption; Reports for control of overhead costs.
3. Determination of product costs : Production flows and cost flows; Methods of costing Job and process costing systems; joint and by-product costing and decision making.
4. Cost behaviour and Decision making: Methods for determining fixed and variable costs; CVP analysis and decision making - key factor distribution - Optimisation of product mix, make or buy decisions. Capacity utilisation, plan shutdown, CVP under conditions of uncertainty. Sensitivity analysis; Non-linearity of CVP relationship and decision making; Variable costing vs absorption costing; critical evaluation of variable costing.
5. Budgets and Budgetary control: Meaning and Purpose - Essentials of effective budgeting; components of comprehensive budgetary program; operational budgets; budgetary control reports; budget revision.
6. Standard costing : Definition, purpose of standards; types of standards, standard setting; accumulation of actual costs, variance analysis; presentation of variances; investigation into variances; revision of standards.
7. Concept of control: Operational & Management control; Phases of management control; control climate; key variables of managerial performance; behavioral aspects of control.
8. Direct & Indirect controls: Responsibility centres and performance evaluation. Transfer pricing. Internal audit, Management audit and enterprise self audit.
9. Strategic Cost Management System : Value Chain analysis; Activity Based Costing; Life Cycle Costing; Target costing; Strategic Control Systems.

Suggested Readings:

1. HORNGORNC-T : Cost Accounting A Managerial Emphasis; Prentice Hall of India, New Delhi.
2. Shillinglaw Gordon : Accounting : A Management Approach, Richard D. Irvin, New York.
3. Lestre E. Heitger and Sare : Managerial Accounting, McGraw Hill, New York.
4. Anthony and Deardon : Management Control Systems.