Cost Accounting I

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Cost Accounting I is an introductory course that focuses on the concepts, methods, and techniques used to track, record, and analyze the costs associated with producing goods or providing services. It moves beyond financial accounting by providing detailed internal cost information to aid management in planning, controlling operations, and making strategic decisions. The course establishes the foundation for understanding how costs behave and how they are assigned to cost objects like products, services, or departments.

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Cost Classification and Behavior: This is the fundamental first step. Costs are classified in various ways for different purposes:
- Element-wise: Material, Labor, and Overheads.
- Function-wise: Production, Administration, Selling & Distribution.
- Behavior-wise: Fixed, Variable, and Semi-variable costs. Understanding cost behavior is crucial for forecasting and decision-making.
Material and Labor Cost Control: The course delves into the detailed accounting and control of the two primary direct costs:
- Material: Covering techniques like inventory control (ABC Analysis, EOQ), pricing of material issues (FIFO, LIFO, Weighted Average), and calculating material variances.
- Labor: Covering payroll accounting, different wage systems (time-rate, piece-rate), and measuring labor efficiency and idle time variances.
Overhead Absorption and Cost Sheet Preparation: A significant portion involves the process of collecting, allocating, apportioning, and absorbing manufacturing overheads into the cost of products using a predetermined overhead rate. This culminates in the preparation of a Cost Sheet, which provides a detailed statement of the total cost and cost per unit of a product.