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Cost fm

Nidhi (Student) (46 Points)

23 August 2014

please tell me... how should I prepare cost fm theory for Nov 14 exams?

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CA PANKAJ KAPOOR (ICAI Licentiate ICSI CMA (All India Rank Holder)) (191 Points)
Replied 23 August 2014

Dear Nidhi,

For costing major part of theory questions comes from chapter 1 (Basic - cost control vs. cost reductions, methods of cost accounting, costing vs. cost accounting, need & benefit & implementaion of costing system), chapter 2 (Material - bin cards, prepectual inventory control, ABC, treatment of scrap, waste etc, eoq, relevance of material level ), chapter 3 (labour - method of labour & bonus calculations, method of calculating labour turnover ratio), chapter 4 (overhead - under & over absorption - how to treat, method of distribution of overhead & recovery of overhead)

For FM all the chapters are equally impartant (one question from ch-1, 4, 5, 7 mostly).

If you have 20-30 hours go for practice mannual of icai.(approx 120 theory question with whole coverage - give 10-15 mins to each question & take notes of crux/bullet points) - if already done with practical part of subject

but if you are still required to do practice as well & sufficient time then go for study material - it will give basic understanding of both.