Elements of Costing

Unit 1 Introduction to Cost Accounting
Introduction Meaning & Definition of Cost, Costing and Cost Accounting VIEW
Objectives of Costing VIEW
Comparison between Financial Accounting and Cost Accounting VIEW
Designing and Installing a Cost Accounting System VIEW
Cost Concepts, Classification of Costs Cost, Unit Cost, Center, Elements of Cost VIEW
Preparation of Cost Sheet Tenders and Quotations VIEW
Unit 2 Material Cost Control
Material Cost Control Meaning VIEW
Material Cost Control Types: Direct Material, Indirect Material VIEW
Material Control VIEW
Purchasing Procedure, Store Keeping VIEW
Techniques of Inventory Control, Level’s settings VIEW
EOQ VIEW
ABC Analysis VIEW
VED Analysis VIEW
Just In-Time VIEW
Perpetual Inventory System VIEW
Documents used in Material accounting VIEW
Methods of Pricing Material Issues:
FIFO VIEW
LIFO VIEW
Weighted Average Price Method VIEW
Simple Average Price Method VIEW
Unit 3 Labour Cost Control
Labour Cost Control Meaning VIEW
Types: Direct Labour VIEW
Indirect Labour: Timekeeping, Time booking, Idle Time, Overtime VIEW
Labour Turn Over VIEW
Methods of Labour Remuneration: Time Rate System, Piece Rate System VIEW
Incentive Systems (Hasley Plan, Rowan Plan & Taylor’s differential Piece rate System) VIEW
Unit 4 Overhead Cost Control
Overhead Cost Control Meaning and Definition VIEW VIEW
Classification of Overheads VIEW
Procedure for Accounting and Control of Overheads VIEW
Allocation of Overheads VIEW
Apportionment of Overheads VIEW
Primary, Secondary Overhead Distribution Summary VIEW
Repeated Distribution Method and Simultaneous Equations Method VIEW
Absorption of Factory Overheads VIEW
Methods of Absorption, Machine Hour Rate VIEW
Unit 5 Reconciliation of Cost and Financial Accounts, Emerging Concepts in Costing
Need for Reconciliation VIEW
Reasons for differences in Profit or Loss shown by Cost Accounts and Profit or Loss shown by Financial Accounts VIEW
Preparation of Reconciliation Statement VIEW
Memorandum Reconciliation Account VIEW

Possible Errors in Appraisal Process

Rating errors are factors that mislead or blind us in the appraisal process. Armstrong warned that “appraisers must be on guard against anything that distorts reality, either favorably or unfavorably.” These are the 10 rating errors seen most often. They’re where managers and other raters are most likely to go offtrack.

  1. Central tendencyClustering everyone in the middle performance categories to avoid extremes of good or bad performance; it’s easy, but it’s wrong. This isn’t fair to employees who are really making an effort, and it can be demoralizing.
  2. Overlooking the flaws of favored or “nice” employees, especially those whom everyone likes.
  3. Excusing below standard performance because it is widespread; “Everyone does it.”
  4. Guilt by association. Rating someone on the basis of the company they keep, rather than on the work they do.
  5. The halo effect. Letting one positive work factor you like affect your overall assessment of performance.
  6. Holding a grudge. A dangerous luxury that may result in your ending up in court. Never try to make employees pay for past behavior.
  7. The horns effect. The opposite of the halo effect letting one negative work factor or behavior you dislike color your opinion of other factors.
  8. Allowing your bias to influence the rating. Bias can come from attitudes and opinions about race, national origin, sex, religion, age, veterans’ status, disability, hair color, weight, height, intelligence, etc.
  9. Rating only recent performance, good or bad. Data should be representative of the entire review period. If you’re not keeping good notes, you may not remember the whole period. Armstrong noted that “you want to make sure, again, that you’re keeping records so that you can adequately describe performance over an entire performance period.”
  • The sunflower effect. Rating everyone high, regardless of performance, to make yourself look good or to be able to give more compensation.
error: Content is protected !!