CS Executive Costing Important Topics

CS Executive Costing Important Topics. In the previous post, we have given CS Executive Cost and Management Accounting Important Chapters.Today we are providing important topics of CS Executive Cost and Management Accounting.As students are well aware that this subject is MCQ based, it is completely impossible to predict the Question paper. Various questions are asked from different areas of Cost and Management Account. In this Article we will highlight the core areas from which ICSI has asked the questions in last few attempts.This post also contains chapter specific guidance which will help student in preparation for CS Executive Costing.Scroll Down

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CS Executive Costing Important Topics :Basic Concepts

In the chapter ‘Basic Concepts’, overview of all the concepts of Cost Accounting needs to be understood. The major parts which need to be understood are definitions and different  terminologies used in Cost Accounting and the context in which these are normally used. You are required to understand the objectives and importance of Cost Accounting system and its installation in industry. Theoretical questions are generally asked from this chapter almost in every examination. To answer these questions conceptual clarity and visualisation of practical life examples are necessary.

CS Executive Costing Important Topics : Material

The chapter ‘Material’ is very important for the students. Students shall understand the concept, need and importance of materials in production system, various procedures involved in procuring, storing and issuing of stock.You must know the treatment of excess/ shortage of stores and valuation of store to be received, issued & stock at hand. Generally problems on EOQ are solved using formula .Treatment of normal and abnormal loss of materials, waste, scrap, spoilage and defectives in the Store ledger to be understood to arrive at correct stock position and its respective value.To avoid any confusion you should read the question carefully and understand the calculation under methods of Valuation.

CS Executive Costing Important Topics :Labour

In the chapter ‘Labour’ students shall learn and understand the need of labour cost control, methods of attendance and payroll preparation procedures. Treatment of idle time and overtime both as normal and abnormal should be clearly understood by you. Be conversed with various methods of computing labour turnover and Incentive plans to the workers. Students should be acquainted with of different systems of wage payment and Incentives through practicing different types of In examination generally questions are asked to compute Incentives based on a particular incentive plan or make comparison between two given plans. Students are advised to avoid selective study like only Rowan or Halsey method of bonus plan.

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CS Executive Costing Important Topics : Overheads

In the chapter ‘Overheads’ in which students shall understand the meaning and difference between direct cost and indirect cost i.e. overheads. Overheads are generally associated with more than one department or product.Students should be versed with treatment of under absorption and over absorption of overheads through application of supplementary rate while ascertaining the cost of a particular product or department. You should also learn different methods of secondary distribution and calculation involved therein. Students should do thorough practice to avoid computational errors.

CS Executive Costing Important Topics : Integrated and Non-Integrated Accounts

In the chapter ‘Integrated and Non-Integrated Accounts’ students shall acquainted with both Integrated and Non- Integrated systems of accounting and different ledgers account to be opened under the two methods of cost accounting. You should know the reasons for the differences between profit as per the financial accounting and the cost accounting and ways to reconcile it. Accounting treatment of over absorption and under absorption of overheads should be Understood.

CS Executive Costing Important Topics : Method of Costing

The chapter i.e. ‘Method of Costing ‘ consists of Job Costing, Contract Costing, Batch Costing, Operating Costing and Multiple Costing. Students shall be conversed with the adjustment of opening and closing stock of raw material, work in process and finished goods while preparation of Job/ Batch cost.In Contract Costing profit from the contract is recognised using percentage of completion method.To arrive at it various factors such as Value of contract, Cost of Work certified, work uncertified, retention money, cash received should be understood. Computation of notional profit and estimated profit shall be learned. You should understand effects of escalation clause both to contractor and contractee and revision of work certified.The chapter ‘Method of Costing also consists of Process Costing, Operation Costing, Joint Products and By Students should be able to identify each process and related cost. To find out accurate cost incurred and output for a given period ‘Statement of Equivalent Production’ is prepared. Students should be able to calculate equivalent production for a given period with the use of any methods of inventory valuation.One most important area of calculation is the treatment of normal loss, abnormal losses/ gains, adjustment for scrap in ascertainment of actual abnormal loss/gain.Some time questions may be asked on selling price at which a particular product can be sold or should be sold after further processing

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CS Executive Costing Important Topics : Standard Costing

In the chapter ‘Standard Costing’ all students should understand the meaning of standard cost and what is actual cost. Formulas and its logical interlinks for finding out variances should be understood. Mere mugging up of formulas without proper understanding of its relationship will not going to help, clear understanding will definitely help students where numerical are based on practical situations. This chapter requires lots of practice.

CS Executive Costing Important Topics : Marginal Costing

‘Marginal Costing’ is  one of the most vital chapter. Basic marginal equations and formulas should be understood. Students should be able to extract Profit Volume Ratio (P/V Ratio), Break Even Point/ sales, margin of safety, contribution, bifurcation of fixed cost from semi variable cost. Difference between marginal costing and absorption costing should be understood.

CS Executive Costing Important Topics : Budgets and Budgetary Control

In the chapter ‘Budgets and Budgetary Control’, You are required to learn the difference between various types of budgets and process of preparation of budgets. Generally preparation of flexible budget segregation of fixed cost and variable cost is required, so segregation techniques should be learnt. It is important for the students to understand inter linkage among different functional budget while answering question on functional budget.

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Important Topics of CS Executive Exam

Here we are providing subject wise important topics to CS Executive students. See below How to prepare CS Executive Module – 1 and Module – 2. Click below links

Module – 1

CS Executive Company Law

CS Executive Cost and Management Accounting

CS Executive Economic and Commercial Laws

CS Executive Tax Laws and Practice

Module – 2

CS Executive Capital Market and Securities laws

CS Executive Company Accounts and Auditing Practices

CS Executive Industrial labour and General Laws

 

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Best CS Executive Costing Video Lectures