Intermediate Standard Syllabus TNPSC

Concepts And Definitions
Limitations of Financial Accounts
Differentiation of Cost and Financial Accounts.
Definitions of Costing, Cost Accounting and Cost Accountancy.
Objectives of Cost Accounting - Ascertainment of cost, product and service, pricing, cost control and reduction, product/service, profit determination, managerial decision making, inventory valuation, budgeting and control.
Organising for cost determination - Cost centre, Profit Centre, responsibility centre, cost unit.
Ascertainment of cost - post costing and concurrent costing.
Elements of costing - materials cost, labour cost, direct expenses and overheads.

Materials

Material management - purchase routine - stores control - Function of store keeper.

Purchase routine - indenting procedures - order level indenting - production planning based indenting, calendar indenting - vendor rating and selection - tendering procedures - tender committee formation functions and recommendations - purchase order.
Stores routine - stores indenting, receiving and inspection of stores - stock levels - Maximum, minimum, E O reordering and damage level.

Perpetual inventory system - physical verification - continuos stock check - slow moving, non moving and

obsolete stock - ABC, V.E.D, XYZ and insurance items of stores - different classes of materials like raw material, packing material, consumable, spare parts, general hardware stores, tools etc.

Pricing of issues - FIFO, LIFO, HIFO, Base stock, average stock, simple and weighted average standard price, inflated price and market prices - effects of these methods on inventory valuation and profits.
Forms and registers - bin card, stock ledger purchase requisition, inspection report, good received note, material issue requisition, verification reports, vendor register, bill of materials, materials specification sheets, tender committee documents, material return note.
Inventory carrying costs - space, handling, transportation within and without, insurance, storage loss, risks of obsolescence.

Labour
Recruitment procedures and employee records - recording of attendance - recording of job/operation time - idle time, recording and analysis by causes - over time recording payment and treatment in cost accounts.
payroll procedures - methods of wage payment - time and price rate- various incentive schemes.
Booking Labour costs by wages rate and composite rate - element of Labour costs - wages D.A., F.D.A., V.D.A., overtime, incentives, ESI, PF, etc., - treatment of bonus and gratuity.

Labour turnover - recording and assessment - causes - preventive costs, actual hidden and replacement costs - training and induction costs.
Production and productivity - measurement - productivity improvement programmes - application of industrial engineering - ergonomies.

Direct Expenses

Definition - nature, collection and tracing to cost unit.
Treatment of direct statutory expenses like duties and taxes.
Treatment of royalty, surveyor's fees etc.

Overheads
Nature, classification, Organisation for accumulation of item-wise overheads costs, allocation, apportionment and absorption.
Basis of allocation - space area, power point, number of employees etc.,
Basis of appointment - secondary distribution - interdependent and reciprocal series
Basis of absorption - labour hour, labour cost, machine hour, material cost, prime cost and factory cost.
Classification of overheads - Production, work, factory or manufacturing overheads. - general or administration overheads - setting and distribution overhead - fixed, variable and semi variable overhead - over and under absorption.


Costing records, cost ledgers - Reconciliation of financial account and cost accounts - integrated accounts.

Methods
Nature Of Industry Based
Job, batch and contract costing - discrete, production flow - part filling and work in progress valuation - profit determination for incomplete contracts.
Process costing - for continuous process industries - treatment of normal loss, abnormal losses and gains - concept of equivalent production.
Operation costing for service industries.
Multiple costing.
Systems of costing universally applicable
Standard costing - setting standard for elements of costs - accounting for actual costs - variance analysis
Marginal costing - variable costs, fixed costs, semi variable costs - break even point and break even analysis - margin of safety - cost volume profit analysis.

Management Uses Of Cost Information
Cost control and cost reduction - assessment of loss, waste, scrap, defectives and spoilage.
Budgets and budgetary control - flexible budgets - Zero-base budgeting.