Course Outcome
- Remember the Types and Classification of Costs / Definition and concept of Marginal Cost, Differential Cost, Sunk Cost, Opportunity Cost, Replacement Cost, Relevant Cost / the key concepts of standard costing / the key terms related to budgeting and forecasting.
- Understand the elements of Cost, Cost Unit and Cost Centre / the importance of Marginal Costing Technique – Contribution, P/V Ratio, Break-Even Point and Break-Even Analysis, Margin of Safety, CVP Analysis and Key Factor / how standard costing contributes to effective cost control and types of standards, limitations and advantages of standard costing / the importance of budgeting in business decisions and planning, classifications of budgets.
- Apply the knowledge and – ascertain Cost through Cost Sheet preparation / make short term Business Decisions – Acceptance or Rejection of Special Order, Closing Down of Production Plant Decision, Make or Buy Decision, Production or Sales Mix Decision / Apply fundamentals of standard cost and conduct ariance analysis / techniques and prepare various types of budgets.
- Analyse – Allocation and apportionment of overheads / the break-even points, Margin of Safety, and conduct Cost-Volume Profit Analysis to make short term business decisions / types of standards and types of variances analysis to identify the areas of growth / the types of budgets for effective business decisions.
- Evaluate – the impact of marginal costing for taking short term business decisions / evaluate the effectiveness of standard costing in achieving business goals / the various types of budgets for better business performance.
