COSTING

Theory
Unit 1

Cost of Materials

⏱️ 40 Hours 📊 20 Marks

A: Storing of Materials

  • i)
    Bin Card – Definition and Necessity
  • ii)
    Stores Ledger – Definition and Necessity
  • iii)
    Centralized Stores and Decentralized Stores

B: Materials Control

  • i)
    Necessity of Material Control
  • ii)
    Fixation of Stock Levels of Materials:
    • Re-order Stock Level
    • Maximum Stock Level
    • Minimum Stock Level
    • Average Stock Level
    • Danger Stock Level
    • (with Simple Practical Problems)
  • iii)
    Fixation of Economic Order Quantity (EOQ):
    • Definition and Advantages of EOQ
    • Simple Problems on Determination of EOQ (with the help of formula)

C: Methods of Pricing Materials

  • Methods of Pricing Materials issued from Stores and Preparation of Stores Ledger Accounts:
    • FIFO Method
    • LIFO Method
    • Simple Average Method
    • Weighted Average Method
  • Advantages and Limitations of FIFO Method, LIFO Method, Simple Average Method and Weighted Average Method

TAXATION

Theory
Unit 2

Agricultural Income

⏱️ 10 Hours 📊 5 Marks
  • Definition of Agricultural Income
  • Taxability of Income from sale of tea and coffee grown and manufactured in India
  • Very common instances of agricultural income and non-agricultural incomes
Unit 3

Income under the head "Salaries"

⏱️ 30 Hours 📊 15 Marks

A: Basis of Charge and Allowances

  • Basis of charge (Section 15)
  • Essential norms of salary income
  • Allowances:
    • Basic Salary
    • Dearness Allowance
    • City Compensatory Allowance
    • House Rent Allowance [Section 10(13A)]
    • Medical Allowance
    • Bonus
    • Children Education Allowance
    • Transport Allowance

B: Perquisites [Section 17(2)]

  • a)
    Valuation of rent free unfurnished accommodation provided to:
    • (i) Central and State Government Employee
    • (ii) Private Sector Employees [Rule 3(1)]
    • Valuation of rent free furnished accommodation
  • b)
    Valuation of perquisites in respect of:
    • (i) Free education to employee's children
    • (ii) Payment of school fees by the employer
    • (iii) Education facility in employee's institute
  • c)
    Very common examples of tax free perquisites
  • d)
    Deduction for professional tax or tax on employment [Section 16(iii)]

PROJECT WORK

20 Marks

Choose any ONE of the following project topics:

1

Visit any manufacturing firm, collect real data and prepare a detailed Cost Sheet.

2

Visit any production unit, collect necessary data regarding raw materials of a particular commodity, prepare Bin Card and Stores Ledger.

3

Visit any production unit, collect necessary data regarding raw materials of a particular commodity, calculate Economic Order Quantity / Re-order Quantity for each and every raw material.

4

Collect data from any relative, who is a salaried person and compute his / her income from salary [excluding perquisites].

5

Visit any agricultural farm, collect data and prepare agricultural income and total income.

6

Meet ten individual persons, collect different information related to staying in India and abroad. Comment on Residential Status and their tax incidence.

📋 Project Submission Guidelines

First Page:
  • Name of project
  • Name of project maker
  • Name of supervisor
  • Name of school
  • Roll number
  • Class
  • Month and year of submission
Second Page:
  • Acknowledgement – Thank teachers, parents, friends, and reference books
Third Page:
  • Table of Contents / Index
Main Content Structure:
  • Introduction
  • Objectives of the project
  • Conceptual Framework
  • Collection of data for the Project
  • Presentation of data collected
  • Discussion and analysis of data
  • Conclusion and recommendations
  • Limitations
  • Future work prospects