Cover
Contents
List of Illustrations
Preface
Part I: Cost Accounting Fundamentals
Chapter 1: Cost Accounting—An Overview (General Principles)
1.1 Meaning of Cost Accounting
1.2 Objectives of Cost Accounting
1.3 Advantages of Cost Accounting
1.4 Cost Accounting and other Branches of Accounting
1.4.1 Cost Accounting and Management Accounting
1.5 Concepts of Cost
1.6 Classification of Costs
1.6.1 Classification on the Basis of Time
1.6.2 Classification by Nature or Elements
1.6.3 Overheads
1.6.4 Association with the Product (Costs in Their Relation to Product)
1.6.5 Accounting Period-Wise Classification of Costs
1.6.6 Behaviour-Wise Classification of Costs
1.6.7 Functional Classification of Costs
1.6.8 Costs for Planning and Control
1.6.9 Costs for Analytical and Decision-Making Purposes
1.6.10 Other Costs
1.7 Cost Objects
1.7.1 Cost Unit
1.7.2 Cost Centre
1.7.3 Profit Centre
1.8 Methods of Costing
1.8.1 Process Costing
1.8.2 Specific Order Costing
1.9 Techniques of Costing
1.10 Elements of Cost
1.10.1 Material
1.11 Installation of a Costing System
1.11.1 Practical Difficulties in Installing a Costing System
1.11.2 Measures to Overcome Difficulties
1.12 Role of a Cost Accountant in an Organization
Key Terms
Question Bank
Objective Type Questions
Short Answer Questions
Essay Type Questions
Exercises
Part II: Elements of Cost
Chapter 2: Direct Materials
2.1 Direct Materials
2.1.1 Meaning of Direct Material and Its Constituents
2.1.2 Indirect Materials
2.2 Purchasing Function
2.2.1 Objectives of Purchase Department
2.2.2 Methods of Purchasing
2.3 Purchase Procedure
2.3.1 Stage I: Indenting for Materials
2.3.2 Stage II: Issue of Tenders
2.3.3 Stage III: Receiving Quotations
2.3.4 Stage IV: Placing Purchase Orders
2.3.5 Stage V: Inspecting Stores Received
2.3.6 Stage VI: Receiving Stores
2.3.7 Stage VII: Passing Bills for Payment
2.4 Pricing of Stores Receipts (Accounting for Direct Material Cost)
2.4.1 Joint Purchase Costs
2.4.2 Storage and Issue Losses
2.5 Stores Functions
2.5.1 Main Objectives of Store Keeping
2.5.2 Duties and Functions of a Store Keeper
2.5.3 Centralized Stores
2.5.4 Imprest Stores
2.6 Classification and Codification of Materials
2.6.1 Some Important Methods of Codification of Materials
2.6.2 Advantages of Codification
2.7 Inventory Control
2.7.1 Meaning of Inventory Control
2.7.2 Techniques of Inventory Control
2.7.3 Economic Order Quantity (EOQ)
2.7.4 Quantity Discounts and EOQ
2.8 Fixation of Stock Levels
2.8.1 Maximum Stock Level
2.8.2 Minimum Stock Level
2.8.3 Danger (or) Safety Level
2.8.4 Ordering Level (or) Re-Order Level
2.9 ABC Analysis
2.9.1 Steps Involved in ABC Analysis
2.10 VED Analysis
2.11 Pareto Analysis
2.12 FNSD Analysis
2.13 Two Bin System
2.14 Continuous Stock Taking
2.14.1 Advantages of Continuous Stock Taking
2.15 Perpetual Inventory System
2.15.1 Advantages of Perpetual Inventory System
2.16 Bin Card
2.17 Stores Ledger
2.17.1 Differences between Bin Card and Stores Ledger
2.18 Periodic Stock Taking System
2.19 Control Ratio—Inventory Turnover Ratio
2.19.1 Advantages of Inventory Turnover Ratio
2.20 Issue of Materials
2.20.1 Factors to Be Considered on Issue of Materials
2.20.2 Material Requisition Note
2.20.3 Bill of Materials
2.20.4 Material Return Note
2.20.5 Material Transfer Note
2.20.6 Kardex System
2.21 Pricing of Material Issues
2.21.1 Specific Price Method
2.21.2 First in First Out Method
2.21.3 Last in First Out Method (LIFO)
2.21.4 Highest in First Out Method (HIFO)
2.21.5 Base Stock Method
2.21.6 Next-in-First Out Method
2.21.7 Simple Average Method
2.21.8 Periodic Simple Average Price Method
2.21.9 Weighted Average Price Method
2.21.10 Periodic Weighted Average Method
2.21.11 Moving Simple Average Price Method
2.21.12 Moving Weighted Average Price Method
2.21.13 Standard Cost Method (or) Standard Price Method
2.21.14 Inflated Price Method
2.21.15 Market Price Method
2.21.16 Selection of Material Pricing Method
2.22 Pricing of Material Returns
2.22.1 Pricing of Materials Returned to Vendor
2.22.2 Pricing of Materials Returned to Stock Room
2.23 Material Losses
2.23.1 Scrap
2.23.2 Waste
2.23.3 Spoiled Work
2.23.4 Defective Work
Summary
Key Terms
Question Bank
Objective Type Questions
Short Answer Questions
Essay Type Questions
Exercises
Chapter 3: Direct Labour and Direct Expenses
3.1 Meaning and Defi nition of Labour Cost
3.1.1 Direct Labour Cost
3.1.2 Indirect Labour Cost
3.2 Time-Recording
3.2.1 Time-Keeping
3.2.2 Time-Booking
3.3 Labour Time-Records
3.3.1 Clock-Card
3.3.2 Job Cards
3.3.3 Time-Ticket
3.3.4 Piece-Work Tickets
3.3.5 The Check or Disc Method
3.4 Accounting of Labour Cost
3.4.1 Monetary Benefits
3.4.2 Non-Monetary Benefits
3.4.3 Deferred Monetary Benefits or Terminal Benefits
3.4.4 Accounting of Labour Cost
3.5 Types of Workers
3.5.1 Casual Workers
3.5.2 Outworkers
3.5.3 Hired Workers
3.6 Work Study
3.6.1 Motion Study
3.6.2 Time Study
3.6.3 Method Study
3.7 Job Evaluation and Merit Rating
3.7.1 Job Evaluation
3.7.2 Methods of Job Evaluation
3.8 Labour Remuneration
3.8.1 Principles of Labour Remuneration
3.8.2 Methods of Remuneration
3.8.3 Taylor’s Differential Piece-Rate Method
3.8.4 Merrick’s Differential Rate Scheme (or) Multiple Piece-Rate System
3.8.5 Gantt’s Task and Bonus Plan
3.8.6 Baum’s Differential Scheme (or) Milwakee Scheme
3.9 Premium Bonus Plans
3.9.1 Emerson’s Efficiency System (or) Empiric System
3.9.2 Bedauxe Scheme or Points Scheme
3.9.3 Barth Scheme
3.9.4 Halsey Scheme
3.9.5 Halsey–Weir Scheme
3.9.6 Rowan Scheme
3.10 Group-Bonus Plans or Schemes
3.10.1 Priestman’s Production Bonus Plan
3.10.2 Rucker’s Plan
3.10.3 Scalon Plan
3.10.4 Towne’s Gain-Sharing Plan
3.10.5 Budgeted Expenses Bonus
3.11 Incentive Plans for Indirect Workers
3.11.1 Principles Governing the Incentive Plan for Indirect Workers are
3.11.2 Indirect Monetary Incentive Schemes
3.11.3 Monetary (Indirect) Schemes
3.12 Co-Partnership
3.12.1 Other Non-Monetary Incentive Schemes
3.13 Labour Turnover
3.13.1 Causes of Labour Turnover
3.13.2 Avoidable Causes
3.13.3 Unavoidable Causes
3.13.4 Effects of Labour Turnover
3.13.5 Measurement of Labour Turnover
3.13.6 Cost-Labour Turnover
3.14 Idle Time
3.14.1 Causes of Idle Time
3.14.2 The Grouping of Categories According to Functions May Further be Classified as Follows
3.14.3 Accounting Treatment
3.14.4 Control of Idle Time
3.15 Overtime and Shift Work
3.15.1 Meaning of Overtime
3.15.2 Causes of Overtime
3.15.3 Disadvantages of Overtime
3.15.4 Control of Overtime
3.15.5 Accounting of Overtime
3.16 Direct Expenses
3.16.1 Meaning and Examples of Direct Expenses
3.16.2 Accounting Treatment of Direct Expenses
Summary
Key Terms
Question Bank
Objective Type Questions
Short Answer Questions
Essay Questions
Exercises
Chapter 4: Overheads Classification, Distribution and Control
4.1 Meaning and Definition of Overheads
4.2 Classification of Overheads
4.2.1 Functional Classification
4.2.2 Element-Wise Classification
4.2.3 Behaviour-Wise Classification
4.3 Methods of Segregating Semi-Variable Costs into Fixed and Variable Costs
4.3.1 Method 1: (Technique 1) Levels of Output Compared with the Levels of Expenses Method
4.3.2 Method 2: High- and Low-Point Method: (or) Range Method
4.3.3 Method 3: Degree of Variability Method
4.3.4 Method 4: Scattergraph Method
4.3.5 Method 5: Method of Least Squares
4.4 Codification of Overheads
4.4.1 Numeric or Numerical or Straight-Number Coding
4.4.2 Alphabetical or Mnemonic Method
4.4.3 Alphabetical Cum Numerical Method
4.4.4 Decimal Method
4.4.5 Field Method
4.4.6 Advantages of Codification of Accounts
4.5 Distribution of Overheads
4.5.1 Stage I: Allocation of Overheads
4.5.2 Stage II: Apportionment of Overheads
4.6 Absorption of Factory Overhead
4.6.1 Methods of Overhead Absorption
4.7 Over Absorption or Under Absorption
4.7.1 Reasons for Under-Absorption of Overheads
4.7.2 Reasons for Over-Absorption of Overheads
4.7.3 Accounting Treatment of Over- or Under-Absorbed Overheads
4.8 Treatment of Certain Specific Items of Overheads in Costing
4.8.1 Packing Expenses
4.8.2 R&D Costs
4.8.3 Interest on Capital
4.8.4 Capacity Levels
4.8.5 Capacity Costs
4.8.6 Capacity Ratios
Summary
Key Terms
Question Bank
Objective Questions
Short Answer Questions
Essay Questions
Exercises
Chapter 5: Administration Selling and Distribution Overheads
5.1 Administration Overheads
5.2 Accounting for Administration Overhead
5.2.1 Separate Cost Item
5.2.2 Apportionment of Administration Overhead to Manufacturing, Selling and Distribution Functions
5.2.3 Transferring Administration Overhead to Costing Profi t and Loss Account
5.3 Control of Administration Overhead
5.3.1 Last Year’s Actual Overheads
5.3.2 Budgeted Overheads
5.3.3 Standards
5.4 Selling and Distribution Overhead
5.4.1 Selling Overheads
5.4.2 Distribution Overheads
5.4.3 Accounting for Selling and Distribution Overheads
5.4.4 Control of Selling and Distribution Overheads
5.4.5 Distinction between Production Overhead and Selling and Distribution Overhead
Summary
Question Bank
Objective Questions
Short Answer Questions
Essay Questions
Exercises
Part III: Costing Methods
Chapter 6: Activity-based Costing (Cost Allocation) System
6.1 Meaning and Definitions
6.2 Key Terms
6.2.1 Cost Objects
6.2.2 Activities
6.2.3 Cost Pool
6.2.4 Cost Drivers
6.2.5 Cost Hierarchies
6.3 Salient Features of Activity-based Costing System
6.4 Implementation of Activity-based Costing System
6.5 Comparing ABC System with Traditional Costing System
6.6 Limitations of ABC System
Summary
Key Terms
Question Bank
Objective Questions
Short Answer Questions
Essay Questions
Chapter 7: Single Costing
7.1 Unit Costing
7.2 Features of Output Costing
7.3 Analysis of Cost
7.4 Cost Sheet
7.4.1 Historical Cost Sheet
7.4.2 Estimated Cost Sheet
7.4.3 Uses of Cost Sheet
7.4.4 Exclusion of Certain Items from Cost Sheet
7.5 Production Account
7.6 Difference between Cost Sheet and Production Account
7.7 Preparation of a Cost Sheet
7.7.1 Stock
7.7.2 Computation of Profit
7.8 Treatment of Scrap
7.8.1 Treatment of Spoilage and Defective Work
7.9 Preparation of Production Account
7.10 For Professional Courses
Summary
Key Terms
Question Bank
Objective Type Questions
Short Answer Questions
Essay Type Questions
Exercises
Chapter 8: Job Costing and Batch Costing
8.1 Meaning and Definition of Job Costing
8.2 Features of Job Costing
8.3 Objectives of Job Costing
8.4 Procedure of Job Costing
8.4.1 Step 1: Pre-production Procedure
8.4.2 Step 2: Allotment of Job Number
8.4.3 Step 3: Issuance of Production Order
8.4.4 Step 4: Maintenance of Job Cost Card
8.4.5 Step 5: Collection of Costs
8.4.6 Step 6: Job Cost Analysis
8.4.7 Step 7: Job Cost Book-Keeping
8.4.8 Accounting for Work-in-Process
8.5 Batch Costing
8.5.1 Special Features of Batch Costing
8.5.2 Economic Batch Quantity (EBQ)
8.5.3 Economic Batch Quantity: Meaning and Method of Determination
8.5.4 Factors Determining EBQ
8.6 Back Flush Costing
8.6.1 Version 1 (Method 1)
8.6.2 Version 2 (Method 2)
8.6.3 Versions 3 (Method 3)
Summary
Key Terms
Question Bank
Objective-Type Questions
Short Answer Questions
Essay Questions
Exercises
Chapter 9: Contract Costing
9.1 Meaning and Definition of Contract Costing
9.2 Special Features of Contract Costing
9.3 Contract-Costing Procedure
9.3.1 Accounting for Material
9.3.2 Accounting for Labour
9.3.3 Accounting for the Use of Plant
9.3.4 Accounting for Overheads (Indirect Expenses)
9.3.5 Accounting for Sub-Contracts
9.4 Types of Contracts
9.4.1 Fixed-Price Contract with Escalation Clause
9.4.2 Cost-Plus Contracts
9.4.3 Advantages
9.4.4 Disadvantages
9.4.5 Incomplete Contracts and Profit
9.5 Guidelines to Assess Profit on Incomplete Contracts
9.6 Work-In-Progress
9.7 Accounting Treatment
Summary
Key Terms
Question Bank
Objective Questions
Short-Answer Questions
Essay Questions
Exercises
Chapter 10: Process Costing
10.1 Meaning and Definition of Process Costing
10.2 Salient Features of Process Costing
10.2.1 Costs Flow From One Process to Another
10.2.2 Average Unit Cost Consumption
10.2.3 Not Distinguishable
10.2.4 Normal Spoilage
10.2.5 Equivalent Production Computation
10.2.6 Work-in-Progress (WIP) at Year End
10.2.7 Emergence of More Than One Product
10.3 Job Costing vs. Process Costing
10.4 Process Losses and Gains
10.4.1 Normal Process Loss
10.4.2 Abnormal Loss
10.4.3 Abnormal Gain
10.5 Elements of Manufacturing Cost
10.5.1 Direct Materials
10.5.2 Direct Labour
10.5.3 Direct Expenses
10.5.4 Overheads
10.6 Equivalent Production
10.6.1 Procedure for the Determination of “Equivalent Production”
10.7 Joint Products and By-Products
10.7.1 Joint Products
10.7.2 By-Products
10.7.3 Co-Products
10.7.4 Differences Between Joint Products and By-Products
10.8 Accounting for Joint Product Costs
10.8.1 Average Unit Cost Method
10.8.2 Method 2: Physical Measure Method
10.8.3 Method 3: Weighted Output Method
10.8.4 Method 4: Standard Cost Method
10.8.5 Method 5: Market Value Method (Sales Value Method)
10.8.6 Method 6: Realizable Value Method
10.9 Accounting for By-Products
10.9.1 Cost Methods: The Following are the Cost Methods
10.9.2 Non-Cost Methods
10.10 Transfer Prices—Inter-Process Profits
10.10.1 Inter-Process Profits
10.10.2 Advantages
10.10.3 Disadvantages
Summary
Key Terms
Question Bank
Objective Questions
Short Answer Questions
Essay Questions
Exercises
Chapter 11: Operating Costing or Service Costing
11.1 Meaning of Operating Costing or Service Costing
11.2 Features of Service Costing
11.3 Users of Service Costing
11.4 Cost Unit
11.5 Cost Analysis
11.6 Transport Costing
11.6.1 Objectives of Motor Transport Costing
11.6.2 Collection of Cost Data
11.6.3 Records
11.7 Boiler House Costing
11.7.1 Boiler House Engaging in Steam Production
11.7.2 Collection of Cost Data
11.7.3 Cost Unit
11.8 Hospital Costing
11.9 Staff Canteen Costing
11.10 For Professional Courses
11.11 Operation Costing
Summary
Key Terms
Question Bank
Objective-Type Questions
Short Answer Questions
Essay Questions
Exercises
Chapter 12: Reconciliation of Cost and Financial Accounts
12.1 Need for Reconciliation
12.2 Causes of Difference
12.2.1 Items Shown Only in Financial Accounts
12.2.2 Items Included in Cost Accounts Only
12.2.3 Items Treated Differently in Cost Accounts and Financial Accounts
12.3 Procedure for Reconciliation of Cost and Financial Accounts
12.3.1 Proforma: Reconciliation Statement
12.3.2 Memorandum Reconciliation Account
Summary
Key Terms
Question Bank
Objective-Type Questions
Short Answer Questions
Essay Questions
Exercises
Part IV: Cost Allocation and Accumulation
Chapter 13: Integrated Accounting System
13.1 Meaning of Integrated Accounting System
13.2 Advantages of Integral System of Accounting
13.3 Disadvantages
13.4 Prerequisites for Successful Integrated System of Accounting
13.5 Accounting Treatment
13.6 The Third Entry Method
13.7 Interlocking vs. Integration of Cost and Financial Accounts
Summary
Key Terms
Question Bank
Objective-Type Questions
Short Answer Questions
Essay Questions
Exercises
Part V: Costing for Planning and Control
Chapter 14: Budgetary Control
14.1 Meaning and Definition of Budget, Budgeting and Budgetary Control
14.2 Forecast and Budget
14.3 Objectives of Budgetary Control
14.4 Advantages of Budgetary Control
14.5 Limitations of Budgetary Control
14.6 Prerequisites for the Adoption of Budgetary Control System
14.7 Installation of Budgetary Control System
14.8 Budget Factor or Key Factor
14.9 Budget Reports
14.10 Classification of Budgets
14.10.1 Functional and Master Budgets
14.11 Cash Budget
14.11.1 Meaning and Definition
14.11.2 Preparation of Cash Budget
14.12 Master Budget
14.13 Classification of Budgets
14.13.1 Fixed Budget
14.13.2 Flexible Budget
14.14 Control Ratios
14.15 Responsibility Accounting
14.15.1 Controllable and Uncontrollable Costs
14.15.2 Responsibility Centres vs. Cost Centres
Summary
Key Terms
Question Bank
Objective Type Questions
Short Answer Questions
Essay Type Questions
Exercises
Chapter 15: Standard Costing and Variance Analysis
15.1 Meaning and Definition of Standard, Standard Cost and Standard Costing
15.2 Features of a Standard Costing System
15.3 Standard Costing and Budgetary Control
15.4 Standard Costs and Estimated Costs
15.5 Advantages of Standard Costing
15.6 Limitations of Standard Costing
15.7 Prerequisites for Installation of Standard-Costing System
15.8 Types of Standards
15.9 Kinds of Standards
15.9.1 Direct Material Cost Standards
15.9.2 Direct Wages Standards
15.9.3 Production Overhead Standards
15.10 Concept of Standard Hour: Variance Ratios
15.10.1 Standard Hour
15.10.2 Activity Ratio
15.10.3 Efficiency Ratio
15.10.4 Capacity Ratio
15.11 Analysis of Variances
15.11.1 Meaning and Definition of Variance Analysis
15.11.2 Variance Analysis
15.11.3 Variance Accounting
15.11.4 Principles of Variance Analysis
15.11.5 Chart of Variances
15.12 Direct Material Cost Variance Analysis
15.12.1 Material-Price Variance
15.12.2 Material-Usage Variance (or) Quantity Variance
15.12.3 Material-Mix Variance
15.12.4 Material-Yield Variance
15.13 Direct Labour-Cost Variance Analysis
15.13.1 Direct Labour Cost Variance
15.13.2 Direct Labour Rate Variance
15.13.3 Direct Labour Time or Efficiency Variance
15.13.4 Direct-Labour Idle-Time Variance
15.13.5 Direct-Labour-Mix Variance (Group Composition)
15.13.6 Direct-Labour-Yield Variance
15.14 Overhead Variances
15.14.1 Variable-Overhead Variance Analysis
15.14.2 Variable-Overhead-Effi ciency Variance
15.15 Fixed Overhead Variance Analysis
15.15.1 Fixed Overhead Variance
15.15.2 Fixed Overhead-Expenditure Variance
15.15.3 Volume Variance
15.15.4 Fixed Overhead-Capacity Variance
15.15.5 Fixed Overhead Calendar Variance
15.15.6 Fixed Overhead-Efficiency Variance
15.16 Revision Variance
15.17 Sales Variances
15.17.1 Sales Variances with Reference to Profit Method
15.17.2 (a) Sales-Price Variance
15.17.3 Sales-Volume Variance
15.17.4 Sales-Mix Variance
15.17.5 Sales-Quantity Variance
15.18 Sales Variances—(Based on Turnover)—Turnover Method
15.18.1 Sales Value Variance
15.18.2 Sales-Quantity Variance
15.19 Reporting of Variances to Management
15.19.1 Reporting of Variances to Management
15.20 Treatment of Variances in Cost Accounts
Summary
Key Terms
Question Bank
Objective Type Questions
Short Answer Questions
Essay Type Questions
Exercises
Exercises
Part VI: Costing for Decision and Control Purposes
Chapter 16: Marginal Costing
16.1 Marginal Cost
16.1.1 Concept of Marginal Cost—View of Economists and Accountants
16.2 Absorption Costing
16.2.1 Salient Features of “Absorption Costing”
16.3 Marginal Costing
16.3.1 Salient Features of Marginal Costing
16.4 Contribution of Gross Margin
16.4.1 Meaning and Method of Computing Contribution
16.5 Ascertainment of Income (Profit) under Marginal-Costing
and Absorption-Costing Techniques
16.5.1 Marginal Costing
16.5.2 Absorption Costing
16.6 Segregation of Semi-Variable Overheads
16.6.1 Method 1: Levels of Output Compared to Levels of Expenses
16.6.2 Method 2: Range Method or “High and Low” Method
16.6.3 Method 3: Degree of Variability Method
16.6.4 Method 4: Equation Method
16.6.5 Method 5: Method of Least Squares
16.6.6 Method 6: Scattergraph Method
16.7 Advantages of Marginal Costing
16.8 Disadvantages of Marginal Costing
16.9 Managerial Applications of Marginal Costing
16.9.1 Optimizing the Product Mix
16.9.2 Problems of Limiting Factor or Key Factor
16.9.3 Make or Buy Decisions
16.9.4 Opportunity Cost
16.9.5 Profit Planning
16.9.6 Shut-Down Decisions
16.9.8 Product Pricing—Fixation of Selling Prices
16.9.9 Decision on Manufacturing Methods
16.9.10 Maintaining a Desired Level of Profit
16.9.11 Production and Market-Expansion Decisions
16.9.12 Offering Quotations
16.10 Special Circumstances in which the Selling Price at or Below the Marginal Cost is Justified
Chapter Review
Key Terms
References
Formulae Pertaining to Marginal Costing
Question Bank
Objective Type Questions
Short Answer Questions
Essay Type Questions
Exercises
Chapter 17: Break-Even and Cost–Volume–Profi t Analysis
17.1 Features and Formulae for Profit–Volume Ratio
17.1.1 Ways to Increase P/ V Ratio
17.1.2 Results of Analysis (After Taking into Account the Various Limiting Factors)
17.2 Cost–Volume–Profit Analysis
17.2.1 Definition of CVP Analysis
17.3 Objectives (Utility) of CVP Analysis
17.4 Break-Even Analysis
17.4.1 Assumptions Underlying Break-Even Analysis
17.4.2 Break-Even Point
17.5 Concept of Some Important Terms
17.5.1 Cost BEP
17.5.2 Cash BEP
17.5.3 Composite BEP
17.6 Profit-Path Graph
17.7 Margin of Safety
17.8 Angle of Incidence
17.8.1 Meaning and Significance
17.9 Impact of Variable Cost, Fixed Cost and Selling Price on Contribution, P/ V Ratio, BEP and Margin of Safety
17.10 Applications of CVP Analysis
17.11 Models
17.12 For Professional Course Students
17.13 Limitations of Break-Even Analysis
17.14 Uses of CVP Analysis
Summary
Key Terms
Bibliography
Formulae
Question Bank
Objective Type Questions
Short Answer Questions
Essay Questions
Exercises
Chapter 18: Differential Cost Analysis
18.1 Meaning and Definition of Differential Cost Analysis
18.2 Salient Features of Differential Cost Analysis
18.3 Marginal Costing vs. Differential Cost Analysis
18.3.1 Similarities between Marginal Costing and Differential Costing
18.3.2 Differences Between Marginal Costing and Diff erential Costing
18.4 Applications of Differential Cost Analysis or Utilities
of Differential Cost Analysis
18.5 Opportunity Costing
18.5.1 Features of Opportunity Costs
Summary
Key Terms
Bibliography
Question Bank
Objective Questions
Short Answer Questions
Essay Questions
Exercises