Cost Accounting & Financial Management is a bit tricky subject of IPCC. But Cost Accounting is simpler and easier than it brother Financial Management. FM demands fundamental knowledge of each topic, so this can put some students in problem if they don’t know the basics of all the chapters.
If you have problems in this subject, then you should follow the tips as given below:
- Padhuka book is the best for Cost Accountancy. So you should refer it. It contains past 60 exams questions and RTP. (Check: Best books for IPCC)
- 6 Chapters out of 10 are easy and simple, so you should give first priority to that subjects for preparation. Then you should take another one. These 6 subjects will just take few days and you can complete it quickly, then you have to only revise it.
- Revision of all the topics are compulsory. If you lack in practice then there is no trick which can save you from this subject in IPCC.
- You should start your preparation with the Operating costing because it is a simple chapter a month the other costing chapters. In operating costing, sometimes questions are tricky. You can understand the pattern of tricks in the question with the proper revision.
- After completing Operating costing, you can start Standard costing but the thing is that one topic is quite similar to another topic. So if you get the concept “Material variance” properly then look into the “Labor variance”. These two are same.
- In Processing Costing, the topics at the beginning of the chapters are simple. You don’t have to give too much effort to do this part. Thus, the complicated part in this chapter is the “Equivalent Production”. If you face problem in this area then read the theory part slowly to understand the concept of equivalent production and then see the solved examples.
- When you are starting other chapters then please do the revision of the Standard costing and process costing side by side because questions often comes from these chapters and you should have a grip on standard costing and process costing.
- Then after you should take the chapters like Marginal Costing and Material, Labour & Overhead, Contract Costing, Budgetary control, Integrated system and reconciliation.
- At last, I would like to say that any practical question requires smart analysis. The only thing you have to do is read the questions slowly and think how to solve it.
Important questions for Cost Accounting are as below:
- Part 1: cost accounting
- Process costing
- Contract costing
- Marginal costing (may be with operating costing)
- Standard costing (may be with budgetary control)
- Integral and non-integral accounting OR Labour
- Part 2: financial management
- Cost of capital
- Capital structure
- Capital budgeting
- Sources of finance (for theory)
- Working capital OR Leverages
In this subject first of all theory part you have to prepare its nearly 32 marks, so just read the practice manual properly, most of the questions will be from it only. Theory will help for practicals also. ( eg ; If you read theory of Labour All methods of calculation of Wages will be understood, Material Formulas will be known, Contract A/c Ways of calculating the Profit will be understood.. So now it is clear Why Theory should be done first, & its Importance in this subject)
If you are too good at Concepts & Practical then only Ignoring thorough study of theory can be thought else for average / bit above average student, Practical with proper study of theory only can Pass with 50 – 55 marks in this subject.
In costing start with Standard Costing & Marginal costing then later Contact, process, material, labour, overhead and so..
In FM, Capital budgeting & Cost of Capital are very vital chapters do them first, properly.
then leverage, Ratios & Working Capital Management, Cash flow, fund flow and so..
Hope you are satisfied with the information. Best of luck for your exams. Thank You..!!