BAAC2101 - Cost Accounting I
BAAC2101 Cost Accounting I 3 Credit Hours
Prerequisites None
Goal The main goal of the course is to develop knowledge and understanding of the operation and maintenance of costing systems. The course also aims at providing students with practical experience in preparing cost sheet. The course gives the students suitable knowledge in using cost accounting information for controlling, planning and the activities in the organizations and for decision making purposes.
  1. The Course provides the basic concepts of cost accounting terminologies as well the computation of costs of different items like material, labor and overheads.
  2. This course also provides a basic understanding of costing technique like marginal and absorption costing.
The students should be able to:

  1. Understand the meaning of cost accounting and differentiate between cost accounting and financial accounting and management accounting.
  2. Define the cost concepts like cost center, profit center, and cost unit. Explain the different elements of material, labor and overheads.
  3. Compute the total cost of manufacturing a product using cost sheet.
  4. Compute the value of inventory using FIFO and LIFO methods.
  5. Compute the various stock levels such as EOQ, Re-order level, Minimum level and Maximum level.
  6. Compute the Labor Cost
  7. Understand the Cost behavior and understand the Marginal costing and Break even techniques.