Syllabus (COMPUTER APPLICATION)

Course Type: ME-3

Semester: 3

Course Code: BBCAMEB23C

Course Title: Introduction to Accounting & Costing

(L-P-Tu): 3-1-0

Credit: 4

Practical/Theory: Combined

Course Objective: Course Objectives: The objectives of an introduction to accounting and costing are to provide learners with fundamental knowledge and understanding of two important aspects of business management: Accounting: The objective of this subject is to teach students how to record, summarize, analyze and interpret financial transactions to assess the financial condition of a business or organization. The following are the various objectives of accounting – • Maintaining systematic financial records • To estimate and ascertain profits or losses • Preparing financial reports to assess the financial position • Auditing of financial reports • To forecast future payments, expenditures and budgets Costing: is the process of identifying, classifying, and allocating costs associated with producing goods or services. The main objectives of introducing costing are Cost Identification, Cost Measurement, Cost Control, Pricing Decisions and Decision-making. Overall, the introduction to accounting and costing provides a strong foundation for understanding the financial aspect of businesses, which is essential for effective management and decision-making at both operational and strategic levels.

Learning Outcome: Course Outcomes: The outcomes of an introduction to accounting and costing are designed to equip learners with specific knowledge, skills, and abilities that are valuable in the business world and various professional settings. Here are some common outcomes of studying these subjects: • Financial literacy Students gain an understanding of financial terminology, principles, and concepts, enabling them to interpret and analyse financial information. • Bookkeeping Skills: Learners develop basic bookkeeping skills, including recording financial transactions, maintaining journals, and posting entries to ledgers. • Preparation of Financial Statements: Students learn how to prepare financial statements such as Income Statements, Balance Sheets, and Cash Flow Statements, which are essential for assessing the financial health of a business. • Interpretation of Financial Statements: The ability to analyse financial statements helps learners identify trends, financial ratios, and areas of concern or improvement within a business. • Budgeting and Planning: Understanding accounting and costing concepts allows individuals to create budgets and financial plans to guide business activities effectively.

Syllabus:

Unit 1: Theory Credit:3 (L 45)

Basic Accounting and Conventions underlying preparation of Financial statements (balance sheet highlighting accounting process, basic accounts, trial balance and financial statements, issue such as provisions for bad debts tax, dividends, losses such as bad debts, missing information, classification effects, cost of assets, rentals etc.), income measurement (revenue; recognition and matching costs and revenues; inventory valuation);depreciation accounting; intangible assets accounting; understanding published annual accounts including fund flow statements. [L 15]

Basic Cost Concepts (Introduction; Cost Classification; Allocation, Appointment and Absorption; Cost Centres); Cost Analysis for Managerial Decisions (Direct Costing, Break-Even Analysis; Relevant Fixed Costs and Sunk Costs). Cost Analysis for Control (Standard Costing; Variences; Material, Labour; Overhead, Sales and Profit). [L 15]

Standard Cost accounting (Budgeting and Control; Elements of Budgeting; Control of Manufacturing and Manufacturing Expenses; Performances Appraisal, Evaluation of Cost Control Systems). [L 15]

Unit II: Tally Credit: 1 (L 30)

Practical part will be based upon the modules covered in the theory part using Tally.

Reading References:

1. Basu & Das, Practice in Accountancy, Rabindra Library, Kolkata.
2. Belverd E. Needles & Marian Powers, Financial Accounting: (with IFRS), Cengage Learning.
3. Bhattacharya, Asish K., Accounting for Managers, PHI Learning.
4. Ghosh, T.P., Financial Accounting for Managers, Taxmann
5. Arora, M.N., Cost Accounting: Principles and Practice, Vikas Publishing House.
6. Goel, Rajiv, Cost Accounting, International Book House, New Delhi.
7. Lal, Jawahar, Cost Accounting, Tata Mc-Graw Hill.