1. PUNJAB COLLEGE OF TECHNICAL EDUCATION, LUDHIANA
COURSE PLAN
Name of Teacher: Cheenu Goel E-Mail: cheenu.pcte@gmail.com
Subject Name: Cost & Mgt. Accounting Subject Code: BB-303
Total Lectures: 49 Case studies: 3
Assignments: 3
Cost accounting has long been used to help managers understand the costs of running a
business. Modern cost accounting originated during the industrial revolution, when the
complexities of running a large scale business led to the development of systems for
recording and tracking costs to help business owners and managers make decisions.
In the early industrial age, most of the costs incurred by a business were what modern
accountants call "variable costs" because they varied directly with the amount of
production. Money was spent on labor, raw materials, power to run a factory, etc. in
direct proportion to production. Managers could simply total the variable costs for a
product and use this as a rough guide for decision-making processes.
Some costs tend to remain the same even during busy periods, unlike variable costs
which rise and fall with volume of work. Over time, the importance of these "fixed costs"
has become more important to managers. Examples of fixed costs include the
depreciation of plant and equipment, and the cost of departments such as maintenance,
tooling, production control, purchasing, quality control, storage and handling, plant
supervision and engineering. In the early twentieth century, these costs were of little
importance to most businesses. However, in the twenty-first century, these costs are often
more important than the variable cost of a product, and allocating them to a broad range
of products can lead to bad decision making. Managers must understand fixed costs in
order to make decisions about products and pricing.
For example: A company produced railway coaches and had only one product. To make
each coach, the company needed to purchase Rs.60 of raw materials and components, and
pay 6 laborers Rs.40 each. Therefore, total variable cost for each coach was Rs.300.
Knowing that making a coach required spending Rs.300; managers knew they couldn't
sell below that price without losing money on each coach. Any price above Rs.300
became a contribution to the fixed costs of the company. If the fixed costs were, say,
Rs.1000 per month for rent, insurance and owner's salary, the company could therefore
sell 5 coaches per month for a total of Rs.3000 (priced at Rs.600 each), or 10 coaches for
a total of Rs.4500 (priced at Rs.450 each), and make a profit of Rs.500 in bot
Objectives
1. To familarize students with basic costing knowledge in costing systems and
methods.
2. To equip students with cost & mgt. accounting problem – solving skills.
3. To enable students to apply knowledge in budgeting, costing, break even
analysis etc. in decision making.

2. Internal Assessment Break-up
MSE- 15 marks
Assignment- 5 marks
Tests- 10 marks
Presentation- 10 marks
Classroom Policies
• Assignments that are late will not be accepted.
• 75% attendance required to give the external exam
• Attendance will not be taken again once it is already taken.
• Attendance will be compulsory on Presentation day. No leaves will be accepted
on that day.
Keeping in view the University norms, the whole of the syllabus will be discussed as
per the below schedule. The schedule can be revised as per the delivery of lectures
and same will be conveyed to the students.
Lecture No Topics Assignment Case Study
1 Introduction:
• Meaning
• Scope
• Objectives
• Advantages & Disadvantages
2 Introduction:
• Installation of costing system
3 Introduction:
• Cost classification
4 Analysis of cost:
• What is cost sheet
• Performa of cost sheet
5 Analysis of cost:
• Practical question of cost sheet
6 Analysis of cost:
• Practical question of cost sheet
7 Analysis of cost: Assignment 1
• Practical question of cost sheet
8 Analysis of cost:
• Practical question of cost sheet
9 Cost Volume profit Analysis:
• Meaning
• Objectives
• Marginal cost equation
• Contribution

3. • P/V Ratio
10 Cost Volume profit Analysis:
• Break Even Chart
11 Cost Volume profit Analysis:
• Margin of safety
• Numerical practice
12 Cost Volume profit Analysis:
• Numerical practice
13 Cost Volume profit Analysis:
• Applications of Marginal costing
14 Cost Volume profit Analysis:
• Applications of Marginal costing
15 Case Study
16 Standard Costing & Variance Analysis:
• Meaning
• Objectives
17 Standard Costing & Variance Analysis:
• Material Variance
18 Standard Costing & Variance Analysis:
• Material Variance
19 Standard Costing & Variance Analysis:
• Material Variance
20 Standard Costing & Variance Analysis:
• Labour Variance
21 Standard Costing & Variance Analysis: Assignment 2
• Labour Variance
22 Standard Costing & Variance Analysis:
• Labour Variance
23 Case study
24 Budgetary Control
• Meaning
• Classification
25 Budgetary control:
• Functional Budgets
26 Budgetary control:
• Functional Budgets
27 Budgetary control:
• Cash Budget
28 Budgetary control:
• Cash Budget( Numerical)
29 Case Study
30 Fund Flow Statement:
• Meaning of fund
• Flow of Funds

4. 31 Fund Flow Statement:
• Working Capital Statement
32 Fund Flow Statement:
• Working Capital Statement
33 Fund Flow Statement: Assignment 3
• P/L Appropriation
34 Fund Flow Statement:
• P/L Appropriation
35 Fund Flow Statement:
• Application &Sources of Funds
36 Fund Flow Statement:
• Application &Sources of Funds
37 Fund Flow Statement:
• Numerical
38 Fund Flow Statement:
• Numerical
39 Fund Flow Statement:
• Numerical
40 Cash Flow Statement:
• Concept
• Fund flow Vs. Cash Flow
41 Cash Flow Statement:
• Performa of cash flow statement
42 Cash Flow Statement:
• Practical question
43 Reconciliation of cost & financial
Accounts:
• Meaning
• Need
• Performa
44 Reconciliation of cost & financial
Accounts
• Practical Problem
45 Material Control
46 Material Control
47 Labour Control
48 Labour Control
49 Overhead Control
Assignments:
1) Compare cost of any two cars of same segment and the probable reasons for the
difference in their cost.
2) Students will be divided into a group of 3. They will be assigned different categories
of product to calculate cost components and breakeven point.

5. 3) Prepare a budget of your house and compare it with the actual one. Find out the
reasons for deviations.
Activity:
Students will visit hotel management department and will be asked to calculate the cost
of a particular dish and then compare cost of that particular dish with the cost prevailing in
the market. Also classify and justify the same into fixed and variable expenses.
Presentations:
1) Small Cars: A revolution on Indian roads.
2) Are we prepared for Common Wealth Games?
3) Euro crisis.
4) Indian business houses: Performance at international level.
5) India or China: Low cost Advantage?
6) A twist in IPL’s Success-A story
7) Micro Finance: A concept
8) Various investment options: Risk Analysis
9) Are we prepared for incoming foreign investments?
10) Fiscal Consolidation: Need of an hour
11) Challenges faced by Indian manufacturing sector.
12) Tax exempted organizations: A bane or boon on Indian Economy.
13) Problems being faced by Indian Agricultural sector.
14) Indian Stock Market
15) Emergence of ETF’s in India.