SOLUTIONS MANUAL
All Chapters Included
, Cost and Management
Accounting
(THEORY, PROBLEMS AND SOLUTIONS)
FOURTH EDITION
M N Arora
MCom, FCMA.
Ex-Associate Professor
Hans Raj College, Delhi University
DELHI - 110007
Visiting Faculty
I
, Contents
1. Introduction to Cost and Management Accounting 1.1-1.12
Cost Accounting 1.2
Cost Accounting and Financial Accounting — Comparison 1.3
Advantages of Cost Accounting 1.4
Objections Against cost Accounting 1.5
Management Accounting 1.6
Scope of Management Accounting 1.7
Functions (or Objectives) of Management Accounting 1.8
Tools and Techniques used in Management Accounting 1.9
Financial Accounting and Management Accounting — Comparison 1.9
Cost Accounting and Management Accounting — Comparison 1.11
Examination Questions 1.12
2. Basic Cost Concepts 2.1-2.20
Concept of Cost 2.1
Cost centre, Cost unit and Cost object 2.2
Methods of Costing 2.4
Techniques of Costing 2.6
Classification of Costs 2.7
Classification of Costs for Decision Making 2.11
Elements of Cost 2.13
Cost Sheet 2.17
Examination Questions 2.18
3. Material Cost— Accounting and Control 3.1-3.63
Meaning and Classifications of Material 3.1
Inventory Or Material Control 3.2
ABC Technique 3.3
Stock Levels 3.6
Tabular Method of EOQ 3.9
Purchase of Materials 3.11
Store-keeping 3.16
Stores Records 3.18
Documents Authorising Movements of Materials 3.21
Stores Requisition Note 3.22
Inventory systems 3.24
Material Losses 3.25
, (x)
Waste, Scrap, Spoilage and Defectives 3.26
Methods of Pricing Material Issues 3.28
Stores Ledger Account 3.28
Problems and Solutions 3.36
Examination Questions 3.54
4. Employee Cost— Accounting and Control 4.1-4.42
Introduction 4.1
Labour Turnover 4.2
Work Study 4.5
Time Keeping 4.7
Time/Clock Card 4.8
Time Booking 4.9
Weekly Time Sheet 4.11
Piece Work Card 4.12
Payroll Department 4.12
Overtime 4.15
Idle Time 4.16
Methods of Wage Payment (Labour Remuneration) 4.17
Time Rate System 4.18
Piece Rate System 4.19
Incentive Schemes 4.20
Co-partnership and Profit-Sharing 4.25
Non-Monetary Incentives 4.26
Problems and Solutions 4.27
Examination Questions 4.38
5. Overhead Cost— Accounting and Control 5.1-5.60
Meaning and Definition of Overheads 5.1
Classification of Overheads 5.1
Accounting of Overheads 5.3
Apportionment of Service Department Costs 5.6
(Secondary Distribution) 5.6
Absorption of Factory Overhead 5.14
Methods of Absorption of Factory Overhead 5.16
Administration overhead 5.23
Selling And Distribution Overhead 5.23
Under And Over-Absorption of Overhead 5.24
Treatment of special Items of Overhead 5.27
Problems and Solutions 5.30
Examination Questions 5.48
6. Unit or Output Costing (Cost Sheet) 6.1-6.29
Introduction 6.1
Cost Sheet 6.1
Method of Preparing Cost Sheet 6.2
Treatment of Scrap 6.7
All Chapters Included
, Cost and Management
Accounting
(THEORY, PROBLEMS AND SOLUTIONS)
FOURTH EDITION
M N Arora
MCom, FCMA.
Ex-Associate Professor
Hans Raj College, Delhi University
DELHI - 110007
Visiting Faculty
I
, Contents
1. Introduction to Cost and Management Accounting 1.1-1.12
Cost Accounting 1.2
Cost Accounting and Financial Accounting — Comparison 1.3
Advantages of Cost Accounting 1.4
Objections Against cost Accounting 1.5
Management Accounting 1.6
Scope of Management Accounting 1.7
Functions (or Objectives) of Management Accounting 1.8
Tools and Techniques used in Management Accounting 1.9
Financial Accounting and Management Accounting — Comparison 1.9
Cost Accounting and Management Accounting — Comparison 1.11
Examination Questions 1.12
2. Basic Cost Concepts 2.1-2.20
Concept of Cost 2.1
Cost centre, Cost unit and Cost object 2.2
Methods of Costing 2.4
Techniques of Costing 2.6
Classification of Costs 2.7
Classification of Costs for Decision Making 2.11
Elements of Cost 2.13
Cost Sheet 2.17
Examination Questions 2.18
3. Material Cost— Accounting and Control 3.1-3.63
Meaning and Classifications of Material 3.1
Inventory Or Material Control 3.2
ABC Technique 3.3
Stock Levels 3.6
Tabular Method of EOQ 3.9
Purchase of Materials 3.11
Store-keeping 3.16
Stores Records 3.18
Documents Authorising Movements of Materials 3.21
Stores Requisition Note 3.22
Inventory systems 3.24
Material Losses 3.25
, (x)
Waste, Scrap, Spoilage and Defectives 3.26
Methods of Pricing Material Issues 3.28
Stores Ledger Account 3.28
Problems and Solutions 3.36
Examination Questions 3.54
4. Employee Cost— Accounting and Control 4.1-4.42
Introduction 4.1
Labour Turnover 4.2
Work Study 4.5
Time Keeping 4.7
Time/Clock Card 4.8
Time Booking 4.9
Weekly Time Sheet 4.11
Piece Work Card 4.12
Payroll Department 4.12
Overtime 4.15
Idle Time 4.16
Methods of Wage Payment (Labour Remuneration) 4.17
Time Rate System 4.18
Piece Rate System 4.19
Incentive Schemes 4.20
Co-partnership and Profit-Sharing 4.25
Non-Monetary Incentives 4.26
Problems and Solutions 4.27
Examination Questions 4.38
5. Overhead Cost— Accounting and Control 5.1-5.60
Meaning and Definition of Overheads 5.1
Classification of Overheads 5.1
Accounting of Overheads 5.3
Apportionment of Service Department Costs 5.6
(Secondary Distribution) 5.6
Absorption of Factory Overhead 5.14
Methods of Absorption of Factory Overhead 5.16
Administration overhead 5.23
Selling And Distribution Overhead 5.23
Under And Over-Absorption of Overhead 5.24
Treatment of special Items of Overhead 5.27
Problems and Solutions 5.30
Examination Questions 5.48
6. Unit or Output Costing (Cost Sheet) 6.1-6.29
Introduction 6.1
Cost Sheet 6.1
Method of Preparing Cost Sheet 6.2
Treatment of Scrap 6.7
