Hello students, can you hear me? Can You All Hear Me? can you hear me Are you? Because we are live now and I hope you all Can you hear me? Good afternoon country. yes please Right students I hope you can hear me I Hope I am visible, you can see me too will be can you see me can you see me Can I hear Mi Audible Mi Visible Good Afternoon Payal Good Afternoon Divyani Neetu Sahni and Kartik Omkar I hope we're on board Good Afternoon all right great so I I think I think we R On Board Culture Dhananjay Shubham Anand Smriti Ankit Divyani ok fine so ya i think we can start today's lecture Are. Students, today's lecture was very It is going to be important because the cost Accounting is a subject which has a lot of Has a wide spectrum. But the chronology We have seen because I attended today's lecture. And my team designed it very carefully. Is. Why it is carefully designed? I am. Because basically the subject itself Numerical is to be very honest. But The way DDU prepared the paper In that you will see that out of 50 Around 22 to 28 questions are theoretical. And there are some 12-13 questions which That they are numerical. to be very I am not your educator in the Honest Sarathi batch of costing and I learned about it. I don't have a very clear idea of Costing is known to your educators. is also a very good teacher he kissed Taught in a manner. But today's lecture It's going to happen in my own way I will teach because I have my own way. means conceptual clarity that you Understand the concept. So a ma'am black look Used to be. A Harsh Once You Come Back From Log in with your YouTube rights or There will be lectures on MCQs also but this It's basically a one shot. Right? So yes sir. So My basic focus will be on conceptual will be in developing clarity so that You can solve all the numerical and theoretical questions. Can. And so or we can start with my Formal intro. So good morning, good Afternoon. Good evening, good night. whenever you watching this lecture, this is your Educator witness. and your appreciation and Because of love my subject only company It was law. But VRF also has a one-shot I got the chance. And again your love Because of this, I also have one shot of cost accounting. I am delivering it. So I hope We are all ready for this. Because this lecture I try to sum up in 3 to 3 1 hours. I will try. every time in his lecture I say assign me a notebook Is. The students who are from the batch know I got a notebook made on company law. Is. Take out the copy that is not there. Take out any register in which today's conceptual clarity as I said You keep developing it. So or with that Being Said Let's Get Started Students. The First Thing That I Am Going to talk to you Neha ji. Hello Ayat Hashmi ji. or ok final we will see to It's also Ratnesh ji, good afternoon to everyone First s I have said because a Devansh jara Will you call Shivam Sir? Which, as I told you, here But my main focus remains conceptual. Clarity on conceptual concepts How do we develop? First of all, we It is important to see how the units are divided. Sir, I want this screen in black. Like it's okay. So first of all my Joe Men The focus is on how we Will develop it. Thank you. How to Achieve Conceptual Clarity Will develop it. So first of all I I will explain how the diversion of units happens. so that you know which ones Units What each unit talks about Is. First of all First of all If I talk about Unit One, then Unit One I have given you the definition of What is the definition of costing? What is costing? costing kiss How does it work? Ok? Vidya ji Good afternoon. So unit one as I Told that I will try my best to make 3 1/2 I can finish this one shot in an hour. So that if you score 1.5x in the exam, my Watch the video and in 1 1/2 hours you will get it. The video ends and you can revise it again and again. You can do it. So Unit One is just a matter for us. What is a cost sheet? cost What happens? cost allocation, cost Absorption is the focus of our Unit One. Will remain. Ok? After that ma'am did physics When will the classes for third semester students start? Physics sir, something has just happened in his family. Think casualty has occurred due to which He is not in the city right now. So he will be Back. Everything is fine now. So he will be Back Pretty Soon. All right. The Second One Apart from costing, the second unit which is yours He focuses on materials. About this. Ok? So the materials What does it mean to focus on? That What kind of direct material, Indirect material is all about those things I focus on. Ok? And yes, okay Is. I also provide the question paper. Am. If we talk about the third unit then The third unit talks about labor. What are Labors and Everything? and fourth I am telling the units according to which Accordingly, today we are going to read One Shot In. Because this one shot is like what I spoke. It is specially designed I have. And the fifth unit, that is, approximately In the last hour of the lecture, we We will look at process costing. We contract Will look at costing. We are looking for Job Costing. We will see. We will look at labor variance. We The machine will see the R rate. All these things are good The books you are consulting, these These are your books, these are other things in them It is also given in chronology. Your Cost Accounting in Gorakhpur Market Books of about seven writers are in circulation. But this is the division of the unit that I have created This was made keeping one shot in mind. Is. So first of all we're going to start with With the first unit that will talk Entire question and most of the questions are on this come from. Of which? This is the first one What do you understand by costing? So my Again we request you that you Absolutely have a notebook ready. Allright End All right. Let's go to Where Are We Moving On? So We won't need it that much because I focus more on conceptual clarity I do. So if you listen to me If so, everything should be clear for you. First of all, the first thing I hope you did was I have taken out the notebook. The first thing that You have to remember to write down the cost If we talk about accountancy If we are talking about Cost Accountancy So what do you need to know about cost accounting? Things to remember that are very important Is. That means if you were asked in the exam that Which four things are considered in cost accounting? We carry Mainly. Right? So those four There are things. When the first thing that happens is I will explain the meaning of costing. At once Don't worry, you guys. The First Thing Is costing. how costing was done She goes? any kind of item The cost is taken out. what do we call that Are? Costing says. which is the other thing Ours is cost accounting. Which is Students are your main focus and whatever we Some are studying this third year of B.Com. In the semester whose cost accounting name Is. So this is what we are reading. We Are Basically studying this only. Ok? Shivani Yes, good afternoon. The third thing you don't You will read it but you must have heard that there are similar CAs. It is a profession. There is a CS. Correct Similarly, cost and management accountants CMA is a profession. So CMA's Techniques of cost controlling in the profession Are taught. And a lot for it It is important. Again, be very careful Please listen to me. cost control It is very important for you to know be it normal wastage and abnormal wastage What is. As we move forward, we will learn about it We will talk more in. And my goodness What is this? And the last thing that when you come back now The semesters are over. When it used to be annual Meaning There was a paper of 100 marks. So cost There was accounting and auditing. So cost This is what we do in accounting and auditing. Used to watch. So basically there are four things that Unit One focuses mainly on. the first of all The thing is costing. The second thing is cost. Accounting. The third thing is cost control and The fourth thing is cost audit. sitting in the mind Let's go. Often, only these four Questions have been asked of things. Now if we go further Can it increase? Yes, it can definitely grow Are. So let's talk about Costing. What is costing? again I can only hope that You must know its basic meaning. all of you Students go to some college or the other Are. Studies take place in college. So let's talk about costing. Costing Key If we talk about costing The first thing you have to remember is ICMA. What is ICMA? students See ICMA Institute of Cost Accounting and Management Costing and Management The way accountants are in our country Chartered Accountancy for CA The institute is and For CS For Company Secretaries There is less ICSI for Company Secretaries. Similarly, cost and management For accountants we have ICMA certificate It is an institute. The name ICMA is because Remember this because you may be asked questions. that the body which gives cost accountants What is the name of the body that regulates it? So students, the name of that body is ICMA. Ok? Let's move ahead. The second of these This is something which is very important for us. What is the definition of ICMA? ICMA's Definition is very important. This question has been seen repeatedly in exams. ICMA says that costing means the Technics End Assurances of cost. i.e The technique of costing and costing The method of detection is called Are. So this is the most important thing about costing. The important thing you should know Needed Ok? Moving on to the next thing. Further information on cost accounting What does ICMA say? I had told you It is made up of four things. So What does it say about cost accounting? Is? About ICMI Cost Accounting He says that the keywords are those I I am writing on the board, I am writing and this is it Keywords you have written on the board You have to remember the definition from these. ICMA says basically cost accounting Cost accounting says that Cost accounting is the process of Accounting of costs. it is the process of Accounting of costs. It begins with the Recording of Income and Expenditure and ends with preparation of periodical Reports. Let's see what our are important keywords. First of all he It is said that accounting for cost. Hum Cost Let's do the accounting here. Ok? So this We have to keep it in mind. This is the first keyword Is. The second thing he said is that in this we Income and expenditure whatever income and Periodical Statements of Expenditure Are. Periodical Statements of Income and Expenditure This thing that has been said to us, it costs us It comes into accounting. I think we are good With cost accounting. cost us I also understood accounting. Moving forward Are. Our second point is, let's talk. About that. Cost control. So as I said that Students, our study related discussions Which we in the ah momentum of graduation Let's see. Spectrum of Graduation only He even talks about cost accounting. whenever We have to talk about cost control. So V Move Forward: How We're Going to Control the Expenses. My goodness what is this? How We are going to control the expenses. So It says that cost control means If the company incurs the cost of any material It seems that it is too much. Ok? We have no produced the goods and we feel That it costs more. Then such What do we do in such situations? In such situations, we try to thus reducing your expenses and What did we name it? cost control Gave the name. So just look at cost control. What has been said about it? cost control It is said about the variety of techniques. Variety Off Techniques. Like for example, standard in this Costing comes. Ok? Budgetary control comes into this. And Inventory control is the main three Are. These are the main three. Their There is also other than that. But these are the most Important three. So this is about cost control. Went. And the last thing I taught you is that Was about cost auditing. So cost What is auditing? Let's see. You were told about cost auditing. Remember all these definitions. This is according to ICMA. He said that the verification of cost accounting We have to do it too. So he said the Verification of cost accounts The verification of cost accounts and a a check On the Arance Arance means follow on the Arens of accounting plan so basically right now so How long has it been in time? Just 15 minutes. I have given you the answer to almost the initial questions. The most important topics are covered here. Got it done. Ok? Now we move forward Let us see further in this what has been said next. Are. What is objective Of costing? If we talk about objectives Do it, you have been asked many times too This is given in the books. So, I If we talk about objectives, first of all Is A Certainty of Cost. to find out that How much has it cost? So Assertainment Off Cost is the first objective. cost address Placement to make any item How much does it cost us and our company? Used to be. That is the cost. So the first thing That We Talk About Here Is the Assertainment of cost. Yes Pooja Gaur ji, please tell me ma'am, write What are you asking? Next is the The second after Next One Assurance The thing said is to control the cost. well We have already told you that when we move forward When we grow, we should see these things in it. Are available. After that it is Fix the selling price. Now this thing is very Students, listen carefully. I don't I know whether you know this or not. But still It is my duty to tell you. If we any also mentions the selling price of the goods There are two things in the selling price Are involved. The first is that stuff the cost of the cost and then there is the cost of the Profit margin means cost and profit Margin. When we combine two things So we need any service for any goods The selling price is revealed to be Rs. So until we know that We don't know how much the item costs until we Can you tell me how much total selling there is? There will be a price. Ok? see you next. Next Guidelines for Management. Guidelines For Management. This is basically the management He finds out how it happens We have to make certainty about the cost. Correct Is? When will GST happen? Tanya ji, I I won't be able to tell you because GST The subject is not mine. Your educator who Those GST live updates will be available when you You can ask them about it. Ok? Now let us Let us come to methods of costing. Another very important topic is methods What are the costings? then we will see Just look at what are the methods of costing. Some of the methods of costing are as follows. The first is Job Costing. Ok? and then there's the second one Process costing. These are mainly the ones on whom the question has come. very often Has come. So these are the two of our chemistry. When will it happen? We don't know about chemistry. Manoj Yadav ji, good afternoon. So look, the first thing I said was job. costing and the second thing is process Costing. Of these two questions, there are many Have been asked. Maximum questions that are It is from these two topics that jobs come What is costing and process costing What is. Ok? Ok? if they come then We will read about these also. Apart from these There are other ways as well. Now look at the job If we discuss costing Before discussing that, there are other ways Just like we also know contract costing Let's see. In addition to contract costing How batch costing is done It is important. How to do batch costing She goes? End After this, what comes next is How operating costs are assured. So operating cost and operating costs We also look at unit costing here. how unit costing is done and Mainly if you are looking for a solution in your cost accounting books Grab the Cost Accounting Syllabus If you pick up, these are all the things. Ok? What are you saying? Tell this study fans IAS, where should I look, what is the matter? Tell me, ask me, what are you saying, write it here Look, tell me what should I see? Yes, this is what These are our total methods according to which We do costing according to Costing is done. Ok? Moving forward Are. When Methods of Costing These things are methods of Casting and I hope you keep writing with me had been. Now let us take each thing one by one We will talk about. I am going to start I am talking about job costing. to do. See What is job costing? If we are talking about job costing So basically the cost here They are collected, are accumulated on each job How much did it cost? How much does each job cost? Happened. Ok? So have a look job costing It is collected in And accumulated. It is collected and accumulated For each Job. Sneha ji is saying that your plants Many answers in MCQs are wrong. Who Is it wrong? Do you like the effects of Chat GPT? You study from that you think the answer is wrong Are you? Please tell me the answer along with the question And tell me which answer is wrong? whoever such Comments that mislead students You do this work and you do it very wrong People. Give one question out of 100-150 questions It is understandable that the question was wrong. But your comments are that which one is it? You can write the options along with the question. Tell me what question you are talking about. And which option are you talking about? Correct Is? All right. So in job costing it is Collected and accumulated for each job. After that the second one is job costing here. The work that is done in it is for the customer Customers from the specification Specifications It is done according to. Ok? These What you need to remember about job costing Is. And I Hope These Jobs Come Back You have kept it. Ok? Let's move ahead. Sneha ji either you read this or you Leave the class. The second is batch costing. So batch costing If we talk about batch Represent Costing Small Orders Does. which are small orders Which are prepared in batches. So The first thing in batch costing is small orders and these are prepared in the factory Let's go. in batches then in the factory In batches, I write factory in here. Batches. Prepared in batches. Well, I should have written In the Factory In batches. But let's go In a hurry, I hope you can Understand. And here one from each batch A separate unit is created. So each batch is each batch end cost It is prepared separately. We calculate the cost of each batch separately. Let's prepare. So each batch cost is Prepared separately. What has happened Our? Batch Costing. Cost and batch Costing is done. Ok? Let's move ahead. Abhishek ji, good afternoon. Gudiya Madheshiya ji. Hi. All right. Moving On. Batch means small lot. Less Order Quantity. Ok? after that further Let's grow. Let's see next. I have talked to you about the job. I have talked about the batch. If we talk about the process Contract Costing. Let's Talk About Dec. Whatever bridges you build in these cities are watching the buildings being built You see, all these contracts. These are done according to costing. So Just remember this much in contract costing Keep in mind that this can be used in construction work. It happens. So it is used basically in Construction work. And an example on which The question has repeatedly arisen as to whether shipbuilding What type of costing is used in shipbuilding? Do you use it? So Ji Shipbuilding We use contract costing in We do. Ok? Noor Alia ji completing this one shot Out of your 75, that means 22 to 28 questions are in this forest. There are full chances of getting stuck in the shot. Ok? Let's move ahead. Did I talk about process costing? No, look now. I have a contract job I had done a batch as well, I don't know which batch. The page flew away, here is the next one after that Process Costing If we talk about process costing What things come? Process Costs of different processes in costing. The costs of the separate process are accumulated. So separate cost Process R Accumulated Separate Cost Process R Accumulated. Ok? End Using this we can say that It is done in textile mills. Who There are clothing shops, chemical works It is done in. Right? So these are certain examples of process Costing. Right? end is the last unit Costing, also known as single output costing They say. And the cost sheet that we get This is what can be seen in this. In which? In unit costing. So unit costing or Then if we talk about single output costing If you do this then here like the name of the product And its cost unit is defined like this. Like if I talk about let's have an Example. If we are talking about BRICS Of. Brick means brick. So about BRICS work If we talk about it, here we are After 1000 let's talk about cost unit. Meaning, how much did we get for 1000? Right? After that if we talk about coal mines About this. So if we are talking about coal mines, then that But how much did it cost to ton? per ton of coal mine valuation costs and exactly the same type if we type if we steel wax If we talk about it then this is also in tonnes. It happens from. So I gave you the basic idea. Gave that Total Cost Accounting Talking about things. Who Cost Accounting Example Process of Process Costing Example of costing For example, let's say it's about textile mills. I have written it. a piece of cloth that is Which is also called textile, then they are different For example, if we talk about silk, then silk Silk is made from warm so they are different When it goes through the process, it becomes silk. The cloth is ready. So That Can Be One Example. Ok? Very good marks Will go. Who is asking Joe Poo? Noor Alia very You will get a very good number. Your very top Will you do it? Ok? Yes sir. So we talked about batch costing. Did. Ok. Right. Let us move ahead. So much We have talked. This is basically what I gave you this one I gave you an overview Gave how the costing was done and the costing is complete Which is your costing syllabus? Focuses on the matter. So this is basically Talking About This. Ok? Now we will talk about the elements of cost. About this. Variant Very Very Variant Elements of Cost. More than half the paper It is full of these questions. so very It is important that you understand this very carefully. Leave a comment if you like this one shot. Are you serious at all? There are three elements of cost. The first one is the material. The second one happens Labor. And the third thing is that in many books you will find this It will also appear under the name of Other Expenses and In many books you will find these under the name of overheads. Will also be visible. Ok? Good afternoon Rishita. So Overheads are also known as other expenses. They say. That's not a problem for us. Whatever may be said, the point remains the same that the elements How many types of off costs are there? So what Our three elements of cost are There are different ways. Ok? Let's move ahead We are. Abhishek Kumar ma'am my exam is fifth of the semester. Tell me something. All the best. All right. Moving on. We also divide the materials. There is direct material and there is one There is indirect material. In the same way we divide labour also. Are. I'm picking up another color here. Labor also has direct labor, Indirect labor. and similarly overheads Another color from back. of overheads There would have been too much classification anyway Is. I mean, I can't say that directly This will come under labour or direct overheads and This will come under indirect overheads. But Here when we come to overheads this one During the shot, he had to look at us from the overheads. will get functional overhead, Administrative overhead, all these things come Are. Ok? So these are the elements of cost. A flow chart is made and basically this Elements of cost are what affect your entire Unit One is seen covering up. then when You go to Unit 2 of Costing Then you need process costing, job costing. Costing, batch costing, all these things. You get to see it. Ok? Let go Let's move ahead. It did not operate in Is? Yes, it has not been operated. Let's have a They also make it operational. a student His comment is that ma'am the operation was not done. You. Basically in operating We talk more about services. Services, like hotels, Like hospitals where mainly services are provided Go away. No product is delivered Is. So the rents of hotels, hotels You go and stay with your family you went, you went out, you you went to Manali, you Went with my family. So what are the hotels? How do you charge rent? At hotels Charge rent based on night stay Are. How do hospitals charge? Rates based on patient per bed per hour Let's charge. So this is in operating cost. Comes. A bus tickets are made for the bus If you travel then all these Things are also done according to the operating Are. Ok? All right. Yes sir. So this is what I I explained it to you. And this is basically what Is compromised when it comes to the unit? First. The Entire Cost Accounting One There used to be a syllabus. Now let's look at We're going to start talking about the material here. Are. I told you that the elements of We divide the cost into three parts. Are. Material, labour and overheads. material Direct to indirect, direct to labour Indirect as well as direct overheads It is divided into indirect. End So with that being said, now we get to the materials. Are going to come. Ok? Let go. What is direct and indirect? Now! We will talk about this. All right. So what is material? You do understand something It will be made of material. If you are from Sarathi batch So you must have understood a lot from the material. So What does material basically mean? What is material? And if you know the material, you Understanding direct and indirect material There shouldn't be any problem either. Right? Look at material, that is, stuff. of the material The division is done in two parts. Main Men who when we are talking about you raw You must have heard the name of the material. Thank you. Correct Is? Raw material. Raw material means raw material The material from which any product is made. Right? So if I'm talking about material And in this I told you about two divisions. I told you. I said direct material. And what did I say second? indirect Material. Direct material and indirect material. So when we are talking about direct Material. So direct material is that Which you can allocate directly to the product Can. Directly allocable. it is the Keyword which is directly allocable. Right? So what do we understand here? Want to go? Directly Elocatable. As This is a bottle. Can you see it? These There is a bottle of water. Direct in this What has been used as material? it Plastic. This plastic, this compound, it's direct to us It is material work. So that means that material As soon as you see the item, you can tell that it is Made of material, that is the direct Material. Now let's say for example this To give the bottle a shape it can be No glue is used in this May have been done. It may be that this Some kind of sculpting machinery has been used without which its Getting in shape was impossible. although that We cannot see the material, but that is Indirect material. means that which can be directly allocated and that which can Not be directly identified. whom we Cannot be identified directly. So this became direct for us and this It became indirect for us. Ok? The Next One Of materials. Moving forward into this and Some examples of direct material I will take it here. Just look. If I give examples of direct material Who should I talk to you? So we can talk about Timber is used in furniture Is. So if our product is furniture then For that we can say that direct The material can be a timbre. Ok? If Take our material for example paper is any sorry if our direct The material is a notebook. Finish good. I mean our product if notebook, we can see that its The direct material is paper. Brother, if the notebook If it is there then obviously it contains paper Must have used it. Ok? After that The Next One. The Next One's About This. It is bricks. When we're talking about brick. So brick Made from clay. That We All Know. This is an example of direct material. And If I talk about indirect So examples of indirect material if What will you be talking about? See I have said this for example, if we talk Use glue that is used in the furniture. I used furniture as an example. Had taken. So in the same furniture, if we glue are using the. That Can Be One Example. Ok? Let's move on to the next In the forest. Let's move ahead. Let us see the second one. End That Is Let's Talk About the Direct Labor and indirect labor. So basically, first we We will talk about direct labor or direct What things are included in labor? So have A look. If we are talking about direct Labor. There is only one thing that comes under direct labor. The labourer who works as a timber worker in the factory There are types of wood. the laborer who working in a factory and that's because It is working because of this it has become a product. I am able to get ready. So that's the ah labor The skilled labor which is being worked upon The Wages Which Is Being Working Upon The Wages in the company in the factory that is the Material Where the Material Is Being What is produced for us? There is direct labor. That is, the labor of By working in the factory of the labourer By living it is possible to create materials that It is attached to the machinery. that is an example of Direct Labour. Ok? Let's move ahead. Next question. 1 minute. A would write it in Are. So the Labour Which is working the labor which is working in the company in the factory sorry which is working in the Factory on the Machinery for the Production Process in the Factory on the machinery for the production process for the Production Process. Ok? So what has happened to us? Direct I got into labor. So what is indirect labor? Indirect labor involves anyone Administrative staff in your office is working in, he is your indirect Comes into labor. All right. Go ahead and now Let us talk about overheads. Overheads are also called other costs. Also called other expenses. But our The one that is used repeatedly in the book is There are overheads. What you need to know about overheads One thing to remember is that indirect material plus indirect labor plus indirect Expenses equal to overheads. This is one of its This is an important formula. indirect Materials Plus Indirect Labor Plus Indirect expenses equal to overheads. Right? All right. So if we take into account the overheads If we talk about overheads then they can be divided into three groups It is divided into. The first is Production overheads. the additional expenses that Neither the material nor the labor is coming. I am coming. But those expenses are Being Inked in the Factory. So they We will name them as production overheads. Let's classify it from. Then the next one Is what? Administration overheads. They Overheads which are administrative expenses I am classified in Administration Have been. So what do we call them? Gave? Administration overheads. This is generally You get to see it in offices. Office expenses not classified elsewhere Can be done. So we give them classified as administration overheads We give. Ok? And the Last One Is Selling and Distribution Overheads. These Mainly these three will help you in your exam purpose. will be asked from. Sailing End Distribution Overheads. So here we are. We have covered quite a bit so far I saw and learned in the last 40 minutes We cover many things related to the exam on the basis of Can cover. Ok Recorded classes are available on the app. Mayank ji definitely they are available and lucky Kashyap ji, tell me what are you saying? So this We even discussed our overheads. Now Let's Talk About Indirect Material, Indirect Wages, Indirect Expenses, of administrative expenses as you Were talking. So if I am of the material itself Let me talk about indirect material here. I'm using a different color pen. So that you know what is indirect I have done it. So if I am saying Indirect material lets say for example So If I buy any product in the form of garments If I talk about textiles, then in that The threads used are very different. There are different types of threads. But what you The cloth looks like a complete cloth. Is it visible or is the top visible or is the shirt visible? Whatever you are seeing is happening. There you The thread work is not visible as much. Clearly. So what is that thread for him? goes? It becomes indirect material. So we can say thread These readymade garments can be one example. Ok? Just like if I talk to What about indirect labor? If we talk about indirect labor then If we have a supervisor, what is his salary? That Will Be a Kind of An for Us Indirect labor. End If we are talking about indirect overheads into indirect overheads and All the overheads that I have given you here taught because overheads are by nature Indirect. So that's not a problem. Now We will talk about the cost sheet. Well, now I am going to teach you the cost sheet. I'm going to, this is a very rough idea Regarding cost sheet. But enough Students are not aware of the cost sheet And cost sheet is repeatedly asked in the exam goes. It is asked internally. in Students do not know. Priyanjali good afternoon. So once a Rough idea what did I say? It's It Just a rough idea that if you don't have anything Still you need this cost sheet exam I should come in. So have a look at it that How is a cost sheet prepared? Is. I will give you a very basic idea here. I have been. In the cost sheet, we The materials we talk about. whatever The things I have taught you so far are Corsi sheets are made by joining things. Priyanjali I said good afternoon to you. So here if we talk about this cost sheet Direct Material Direct Labor How Direct Overheads Are Primed Works Cost Factory cost all these things so it's just a very Rough idea so have a look at it Company Law MCQs are your tomorrow Coming tomorrow in 200 MCQs of Company Law I will get it done from previous year question paper Join me at 9:00 AM. There will be a class of one and a half hour till about 10:30. So Please, I have just learned about company law. I have told you. Don't ask any more questions about this You. Direct Materials Direct labor in Plus direct expenses. Ok. When we add this, what do we get? Do you get it? Prime cost. When we start the factory at this prime cost Overheads add up. As I said, this is your cost sheet. Just a rough idea. But this rough idea If cost sheet is to be prepared in basis pay exam If you get any question then you can solve it and also give the answer. You will throw it out. I have put it into a formula I have put it in the form for you so that if The bigger the cost sheet for students If it is not possible to remember then this is a small You can remember this as a formula. yes. in factory cost after that when we Add office and administration expenses Are. Office and administration expenses If we add it up, then what we get is What is it called? Cost of production. The last thing we do in End Cost of Production When the cost of selling and distribution Add sailing And distribution cost then which we have to pay What do we call it when we get it? total Cost or Cost of Sales. means the goods It has cost us so much to make it. And Now further Meaning, after calculating the cost of sales, we get It is known that the total value of our goods How much is the cost going to be? So if you remember this, you Even if you haven't read the cost sheet, your Even if you haven't studied in college, you Prepare the cost sheet very carefully and Very well, whatever level the question comes You can put that question on the cost sheet. So this is the basic one I gave you Gave the view point. Ok? Nuralia Advertising Expenses in Selling come or transportation that we hire If we do it, there are expenses involved. all these Things come up. Ok? All right. Moving On. Let us move ahead. a great importance The thing that I've noticed is that students Does not know. That is cost center. Why brother? Know the cost center. but you know There is a thing at cost center. Like If You're talking about that cost center. What is the meaning of cost center? This is me You should know about this one shot cost accounting. This is very to the point. Because We have answered the same questions that came in the exam. You just note down the questions. Let us go. Ok? All these things that I have told you, It is very to the point in the exam. Anything There is nothing from here or there in this. from the cost center Many questions have come. So just watch with me. If you don't know what a cos center is yet It happens. After today you will know that cost center What does it mean? Have a look at it. What is the meaning of cost center? cost The center is a segmentation. an activity based divis that even if the material comes How much did that material cost? After that the process in which the material went How much did it cost him? so basically It is the segmentation. If we come to its definition that if we How do you define this, please write to me. with. Writing is very important because it is an exam. It is yours, not mine. So it is the Smallest segment of activity. Smallest Segment Off Activity. It is the smallest segment of activity. or the area which is responsible for the Cost which is accumulated. what did you say I have? Area Which is responsible? for cost Or for accumulated costs. whatever the cost For what we have accumulated so far The area which is responsible. Like for example, if we talk We can take an example like Investment Cost Center is an example It is possible Suppose we have in our office We have seven people in our factory. A committee was formed and we said that You need to find out what we How much have you spent on investments so far? gave and how much we earned. in the same We can also create profit centers. What will be the work of Profit Cross Centre? These to find out whether we have Revenue from operations can be from or How much did you earn from indirect activities? every Breaking an activity into smaller activities Anything that divides into units That is called cost center. Investment cost center can be, Manufacturing cost center can be, Profit can be a cost center. it can B. Anything. But its major work is to Define and draw a criterion for where Till where we have Including the cost and where our profit comes from If it has started then this cost centre will be Can go to a specific area Investment Cost Center Manufacturing Cost Center Profit Cost Center Sales Cost Center, let's get all these things right Noor Alia ji, first of all I have this doubt now I've been thinking that you probably thought I was from the name That she is a girl but you are not a girl. Because You have created so much buzz in the chat. Be very honest girls generally don't do this. So is this Noora Alia or Nadiya? These So I am not able to understand. Ok? Let go Let's go ahead and talk a little bit about it. About Classifications of Costs How is the classification done? It is another very important topic which It is asked repeatedly in the exam. Classification of costs. See If we talk about classification of costs So how are costs classified? Is performed? For example, let's say the most The first is nature or element. Allright See Nature or its element. I have told you three things in this. What Did I tell you? I said labor, I said Material, I said overheads. So that's it You also have to remember three things. Labor, material End overheads. it After that, whatever comes next after nature I want to teach you classification, I want to tell you that that is the functional Classification. How is function wise classification done? Is? So students function wise The classification is divided into three parts And what are those? The first is the most The first is your manufacturing. Second is yours of the administration and the third is yours Of selling and distribution. So these three are And then the last one is that Direct cost which is incurred means that Direct cost in which we have direct Talked about material direct labor And which is indirect. Ok? So moving forward Are. Direct cost and indirect cost. I Think this is enough. We further examine the variability Now understand the classification of cost accordingly. Can. If we classify costs If we look at it according to variability, there are two types It is done from. Fixed Cost and Variable Cost. Fixed costs are those that It does not increase or decrease with production. But variable costs are those that It also increases with production activities. And it also decreases with production activities. Is. And there are some costs that we Also called semi-variable or semi-fixed. Ok? So have a look at it. and basically We classify these cost behaviors. We do. So cost According to the behavior if we talk How does that cost behave? How many ways are there to treat cost? So Cost According to Behavior If You Are talking about So the first thing that comes in this is Fixed cost. What to remember about fixed costs Is? And what to remember about variables That is Volume of Production (VOP) So the cost which varies with the volume of Production cost Which Varies with the Volume of V O Goodness Cost value does not vary, it is fixed that I I am talking. we does not vary with Volume of Production. i.e. fixed cost That is, with the volume of production Varys doesn't. Ok? and the next What is One Variable? which varies with the Which Varies With the volume of production. Joe Volume Verry does with off production. So That becomes variable. Ok? After that, if we talk here, I Talking about cost behavior, In that I talked about there being a fixed and is a variable. The Next One After Behavior That Is Cost According According to controllability. When we divide according to controllability If you do, then according to controllability So what do we do on the basis of controllability? Let's see? On the basis of controllability, we can classify them into two types: Let's see the cause. Ok? the first of all The first thing that happens is uncontrollable costs and the other Controllable cost. Ok? So control Controllable cost means that cost, that expense If our laborers were a little more skilled If we could train them a little better If it is done properly then it will not cost us anything. If it had been there then that is a controllable cost. And The Next One That Has Uncontrollable Costs i.e. the cost which comes in spoilage It has to happen that that is bound to happen to him You can't reduce it. So what do we call it? Are? Uncontrollable costs. controllable cost and Uncontrollable costs. Ok? Two things happen. that which can be Controlled when the if your labors are Well Skilled and That Which Cannot Be Controlled. If your laborers are not skilled. Ok? Meaning Controllable cost of our labors Depends on the efficiency of the workers. But when we're talking about uncontrollable Like cost, if there is any chemical, it That chemical has to be transported somewhere Quality is that 5% out of 100% It will definitely evaporate. Ok? So the Answer over here is uncontrollable cost. No matter how much you do, you are uncontrollable Costs will never be under your control. It is evaporating. If the quality of the chemical is It will evaporate. But about the controllable What is there in it that if our labors are good Yes, the technicians are good. He is his best If you can reduce expenses by giving then that can B. Controlled. Ok? Let go Next one when we're talking about. After this, let us discuss the cost sheet. We will do it in detail. Although I cost Where is this sheet brother? I told you this, I had told you. I told the students that I will give you a rough idea about the cost sheet. I am giving it. This is the Corsi sheet will give you so much privilege that you can Question that will come from the cost sheet. If You have completed it well. I have memorized this. Should I say that you I have remembered so much that the direct material Plus Direct Labor Plus Direct Expenses make up the prime cost. Factory cost in prime cost when we If factory overhead is added, the factory Will make the cost. It includes office and If you add the cost of administration We then have the cost of production there. and selling and distribution After adding up, we get the total cost. Is. If we understand all these things If yes, we will take any kind of question Can. But now if we discuss in detail Because as I said, today's forests My chronology of shots is because as I I have said that this subject was not mine. But I am taking one shot in Sarathi. So My chronology is entirely yours. PYQ is based on whether in PYQ How many points were given to which thing in the university It is in the previous year. Just like that I I have also raised topics. I am here at the unit I am not following Wise. I mean the whole book It will be covered till the end. Definitely every single topic Will be covered. According to Morgan. That is, if You can watch this video two to three times before the exam. Bar It's Enough to Get Your Very Good Marks In your exams. Right? Let go. or so what Was I talking about? About the cost sheet Let me have an in detail discussion. See Cost sheet if we say in layman language Ask yourself what students are like. Cost sheet? A definite statement if you have to give one For someone who is listening for the first time What is cost sheet? basically cost sheet What is? So cost sheet is cost sheet is That in which we can tell how much in any product Cost is being incurred. any product because As I just told you in the lecture Said that when students incur these costs To this we add the profit margin, then We get the selling price. So Antil And until we have complete details of the cost Yes, we cannot tell how much it costs. The sheet is about to be installed. Right? So we will see. ICMA first about cost sheet What has he said? Definition of ICMA It is always important for us. So ICMA is good, that's why I am also an ICMA I am getting the definition done because in the previous Last year I mean 202 Definition of ICMA was asked in batch 1 It is from you. Ok? So let's see Regarding the cost sheet, it was said that this is a There is a document. It is a document. This is a document which provides for Assembly which this line is very important Is. Because this definition is required in the exam Seeing this they ask whose definition is this? Was it given by? to which provides for Assembly. Assembly means a lot of Bringing things together. going call sir Go gone Yes Where did you go, where did you touch? from the client What will happen now, sir? You will have to continue with that No, I don't remember, there is no connection. Let's wait. Two Sir, it is better than that, let's run it in that. Physics is already running live in it. End. There is a physics teacher in physics. No. There is no physics teacher. No no, physics ma'am. Ankita Ma'am Please wait. Two minutes come, one minute. Hey Sir Mike is Mic Mic On Sound Why should I leave this one, I won't leave it. two minutes also planted in Speak or speak Ambulatory not running What happened when made It must have been felt. Wait for two minutes. So mother Mike The mic is on Before that, why is there a problem, ma'am? since remove it now When I checked, he was sleeping. It will continue in that only, right sir? The break is over Sir The break is over One What is taught first in college? taught I did not read it completely And Prayer Good Complete in a week Karachi is like this Sir, this madam, these people Alright students, there is a technical problem. Went. Ok? So because of this technical If the problem is technical then it will definitely happen. Come on, we can start again right. I had done the elements of cost I was talking about direct materials. Cost Sheet Pay I Think I Was About Yes ok sir So in the cost sheet we did controllability Talked about controllable cost and I discussed with you the uncontrollable cost. It was done and now we were going to move on. With that in mind we move forward with the Kaushik sheet. Were going. In the end cost sheet I have a small question. right now this time which is asked in the exam and I I am going to solve the same question. By which Let me know where you are at with things. I have understood it. So let us talk about Cost sheet. Please call sir. I need this to be Black. The first item on the cost sheet is materials. If we talk about stocks, So, it's a very small question. Cost sheet ICMA ka full form hota hai Institute of Cost and Management Accountants. A question in the cost sheet The questions asked in the exam What is it about that? The question says this that if any stock of material If we talk about stock of material Opening stock, closing stock, all these things if we're talking. so have a Look at it. I have a small question Yes, which is a question of the exam only. Right? So Just look at this once. In question You have been given opening material. In the question you Opening material is provided 25,000 Opening stock of finished goods thereafter This is of opening stock material. it Opening stock of finished goods is 51,000 Purchase of material means how much the materials cost The amount purchased is Rs 5,75,000 If we talk about production wages Production wages, say 390,000. We answered exactly the question that came. I am solving it. work overhead charges Work overhead charges were yours 86000 Office and general expenses Your office expenses were Rs 72,000. And after that the stock material that was there It was 30,000 for you. Joe of Finish Goods Stock was 48,000 tons of finished goods The sale that has taken place. So Completely the Sales That is of 12, 20,000. These are your total expenses. Ok? Now a little Let us take a look at how We have to prepare the call sheet. So Have a look at it. When you get a question like this So first of all you have to see that opening What is the stock of raw material? Opening stock of raw material that is 25,000 Which was given to you in the question. then in that You will add purchase of material. How much Has the purchase been made? So the purchase was 575000 You have to add that age well. After adding this, you How much total will I get here? Here you You will get 6 lakhs. And what do you get out of this? Do you want to subtract? From this you have to subtract Which was the closing raw material. Meaning that this The time was not used and was saved for the next time. Which I have done for Rs 30,000 in the question. To you. So 30,000 will be minus from this. Here you get the total raw material. How much has been consumed? RMC means That raw material is consumed. So the raw material Your consumed amount here will be Rs 570000. Then as we move forward in this We add production wages. How much did we spend on production? So Production Wages: How Much Is Your Production? Wedges? That is 3,90,000 These are our production wedges. After that We get the prime cost from here. When We Production wages are added to the total We are prime in raw material consumption. Cost is received i.e. 570000 + 390000 Which will become yours 960000. Then when you move forward in prime cost You add work overheads to the prime cost. After adding work overheads you will get What do you get here? Work cost mill Will go. Meaning if you work at prime cost Add overheads and you get work cost It is available. So we will add this and this will Come Down To 10 lakh 46000 And what shall we call this? work cost When in work cost you office and general Add up the expenses What will you get for office expenses? How much of Office Expenses did we see? 72,000 When you add 72,000 to this then What you will get is that I bring the question here. I am solving it. on the same page as Let it be your question. So after adding office cost to work cost What we get after that is 1046000 + 72000 so this will become our 118000 These 118000 What is ours? This is 118000 This is our cost of production. and this cost The total cost of production we In production 18,000 we have our finished Adds the opening stock of goods And subtract the amount of goods that were not sold. We give. So add the opening stock of Finished goods which is how much in our question Was? 51,000 We will add 51,000 to 81,000 and Will minus closing as much as finished The closing stock of goods was Which is First, total it. Its total is ours How much will it cost? 1169000 and 1169000 Out of this, we will give the closing amount of Rs 48000. If we subtract it, then we get here 11 21000 And finally, it includes selling and We add distribution overheads which Expenses are incurred on advertising or In our question on transportation, If expenses are not given then it should be Nil We will go and our total cost will be 11 lakhs gone 21000 Anything else we've been told, we've been told, sales It is stated how much the sales amount has been If sales are 12000 then if our total Cost 112kJ And our total sales are 12000 has So tell me quickly how to make profit here. What would the figure have been, then from the sales we Let's reduce the total cost and our Whatever the profit figure would have been, it would have been 990 This is how to solve a chord sheet. Our lady is Noor Alia, definitely this I have taken it but this is the question I am asking you Yes, this is your PYQ question. I did not design this myself. Because it definitely takes up a lot of my time too. We have spent 10 minutes solving this question. If you have done this then you will get to see such questions. Can. But what is good is that Total is not the working of a single question. To you Can give you this complete question gave and said answer question number 22 To 30 according to this question. So 22 What is Two in 30 asking for? Let's assume Somewhere they are asking, tell me the raw material How much is the consumption? Tell me the prime cost How much is it? tell me the cost of production How much did it cost? So if you ask such a question then On this basis you will get 10 8 to nine 8 to 10 Will allow you to ask questions. Ok? So this cost It was necessary to install a sheet. Because of the cost sheet There is no point in cost accounting without Is. Now we move ahead in this. And now we'll talk a little bit. So here I have given you all the basic details of costing. Gave it. Now we'll move on and now we'll Let's talk about the theory of materials On which more questions have been asked. so quickly Let's talk about materials do. Next topic: Our materials in Details of study materials. More about materials direct You already know it indirectly. of materials About where I start this discussion What I want to do is to Purchasing happens in two ways. Centralized Purchasing And Decentralized Purchasing. Centralized Purchasing and Decentralized Purchasing: We do purchasing in two ways. Centralized and Decentralized. Yes, yes, absolutely in theory, in your 50s. 35 to 36 questions out of 50 are from your theory Will come. But it was numerically significant. So that's why we had to talk about it. Ok? Let's talk about materials. Centralized Purchasing Decentralized There are two types of purchasing materials. You There are two types of purchasing techniques. Just remember that centralized Whatever purchasing takes place in purchasing This is done by the Purchase Department. But the purchasing that happens in decentralized Each department would make its own purchases. Are. like when they need it Purchasing happens here department wise Is. If you need centralized and This is about the concept of decentralization If there is clarity, then you can definitely solve it. will that do. Ok? After that, we will move ahead with it Centralize and decentralize materials In. Now let's look at a lot of students here. Exams are upon us and they need purchase revision. I don't know what happens. Do you Do you know what purchase revision is? If If you do not know about Purchase Revision then you The purchase procedure is not known and your Only three to four questions in the exam Procedures come from this topic alone. Purchase Procedure means that if any organization If any organization purchases specially what we're talking about is we're centralized Talking about purchasing. We are not Going to Talk About Decentralized Purchasing because then it is not a part of Cost Accounting. cost accounting whenever we are talking about that Talks about centralized purchasing. And There is a process through which these move does and I am talking about the same process I am going to talk. The first thing would be Is One A purchase requisition is formulated. a purchase The requisition is formulated. See That That's the first thing. The second thing is the Second One Section of Supplier. Selection of our supplier She goes. So section of supplier The third thing that happens is the purchase Order. We receive the purchase order here. Is. So the third thing is what? Purchases Order. When we get the order, we Purchases have to be made then. So the fourth thing is For us that is Receipt of materials. When we receive the goods. So receipt Off Materials. After receipt of materials, we will deliver the materials Let's inspect. and please This is a very important topic for students. Is. I hope you can make this in your notebook. We are moving. And you remember this sequence wise. Have to do it too. Because this is quite often one of these Questions have come. And what do they ask? What Is it the Fifth Stage? or What Is the Sixth Stage of Purchase Procedure. So until and Anles you have memorized this well. You Questions cannot be asked on this. even two I have to explain, it is my job to explain. But What is your job that you need to do well? I have to say goodbye to my heart. one time inspection It happens and if something is found during inspection Returns are what we call No purchase returns. So we return that purchase. Send it back to your supplier. i.e. returns from supplier And sorry this should be return to. Knot Key Off So returns to supplier and supplier The final receipts after filing the returns There are invoices, their approval is done and once approved So we pay him, that is Approval of invoices. And this is a seven step procedure and Then the story starts again from there. Ok? So once I go through the purchase procedure Let me discuss with you again which is the most What is our first job that we purchase Requisition means we get it from the purchase department request that the Purchase Department Yes, this stuff of ours has decreased, we have this stuff. Avail it and then select the supplier This is the work of the Purchase Department. Select the supplier whose Through which material we have to buy? After that we will see the purchase order which It is received once we have received it from our supplier. If we select this then we will place the purchase order Let's receive it. Then when we get the material Received, inspecting the materials Are. Material that is not useful to us Yes, let's return it. and then Approval of invoices i.e. one time invoices Only when it gets approved will our payments be made. That would be it. So I think we've done well so far. We talked about the purchase. Now a little We will talk about material control. What does material control talk about? Is? Many students learn these words for the first time. are listening to it repeatedly and if you have heard it then they I don't know what this means. Reorder Level, Maximum Level, Minimum Level, EOQ level, danger level, all these Are part of material control. So We discussed the procedure. Reorder Talking about the formula of level and maximum level I will do it and I hope that this I will write down the formula for you, you can use it for your You will write in your notebook. You will memorize this and How many questions will you get from this in the exam? Will you apply it? So Let Us Start With The Next The topic is about the material control. If we talk about material control So in material control mainly Mainly stock levels in material control Let's come. This is our material control and in that We are mainly referring to stock levels. We do. How many types of stock levels are there? What are they made of? Just look. This is the first stock level. Maximum stock level. After which the second thing that happens is Minimum stock level. First of all, I will explain the meaning of these stock levels. I will explain it to you. Then we cut its flower Will understand. What should be the minimum stock level? Needed? We said maximum, minimum. How much should it be? After that, the third one would be That is the reorder level. When do we need to reorder it? This is called the reorder level. Apart from this, which Fourth is the average stock Level. That on an average how much stock do we have Sorry in our factory in the office It is factory maintained. and the last It is called danger level. That means if your stock falls below this then now The production process will stop and the business will I will start incurring losses. All these levels Comes under material control. and these If we talk about material control levels If you do this, you will get one at each control level. The formula is visible. and every formula We ask questions on this basis. The Very important thing to remember here The thing is that many students If there is a maximum or minimum stock level They know, but they don't know what it is. Comes under cheese. what thing to them She compromises. So this material Come under control. So the material Divided into five stages. Let us first We will discuss all five stages. His I will come to the formula later. first thing What did I say? Maximum stock level. See, overstocking in inventory is also bad. It is a thing and understocking is also a bad thing. If you are overstocking, that is You are ordering more than you need Yes, then definitely the goods came for free. Will not done. You spent a lot of money on stuff Must have spent. spent a lot of money Will be. And if he is away from you for too long Similarly in your warehouse in the godown If it is kept like this then I know there will be another problem. What will happen? That stuff will also start getting damaged. So whatever expense is incurred, it is fine if it is spent properly. If housing facility is not available then he There will be damage. So beyond a limit material It is also wrong to keep it. So maximum stock The level tells how far your warehouse is. Has a capacity of. How far is your production Has a capacity of. To what extent do you have your Should the materials be maintained? So What happened first? She has become Maximum stock level. What happens next? Minimum stock level should not go below this. Try not to go below this. Although It goes below this and when it goes below this then only we Talk about a danger level. But right now Will come to that. So minimum stock level like When you fill petrol in your car So look at the bikes nowadays which have Bluetooth If connectivity is available, it will inform you. There is an eco and power mode. so in that Even before keeping petrol reserves, there was a The level is such that if the petrol If he goes, he will reach danger level. Meaning The vehicle will run for some time in danger level After that the car will stop. So the minimum level This is a level slightly above the danger level. Indicates that the danger level will now drop below this And beyond the danger level, there is nothing. Is. Then the organization will give you its approval for a few days. The production process will have to be shut down and When the production process is going well and it has to be shut down suddenly He starts giving losses to the firm. So this is why No businessman can avoid this. His After that comes the reorder level. Reorder Level What happens in? to order back That now the time has come. Now it is consumed. Now Place the order. This is the same as at the minimum level When it reaches, we look at the reorder level. And what is the last one? Average stock level. That If someone asks us, Madam, now tell me about your How much stock is there in the factory on an average? Is maintenance done at this level? So he's on To tell an average, we call it average. Stock level. Now the most important thing is More important thing if you still Its formula is not clear, you do not know How was this to be solved? Now you will know how to find the solution. Have to do it. So we've written it down to the point where Let's go ahead and solve it. This. Whom? To material control. So quickly the I am going to write down the formula for you. Please write the formula along with me. Please right down Maximum stock level starts from there we will do it The formula for maximum stock level is that you are in ROL i.e. reorder level Reorders add quantity. So R ol plus R Oq minus how much material Consumption has been done which is minimum consumption. Is. So the minimum consumption into minimum reorder period minimum consumption Into minimum reorder period. This is our formula, this is the maximum Stock is of level. once we Maximum stock level would be known Is. Then our second formula will be this I mentioned to you the maximum stock. About this. The second thing I'm talking to you about Yes, that is about minimum stock level. So minimum stock level How much formula is there? I hope you People all are writing with me. Minimum Quantity of material that is always maintained Should be. back to you in this too Reorder level needs to be removed. And In the reorder level, we normalize our Consumption happens. So the normal consumption 15-20 minutes before your exam when you You are outside the exam hall and you are revising. You would be doing it. Whenever the teacher speaks to you That come on, come on, let's go inside the class. These Write the formula in such a place that it is visible at the last moment. Before you go to the exam hall You can revise this formula once. Because this formula is very important. If you remember these formulas then their basis You will ask questions on it. Because Yet Again The questions you are given in the exam Yes, they are not very tough. that is a Pretty good. those questions you can solve If you know the basics. Ok? His The second one we see. Maximum Key We talked, we talked about the minimum. Reorder Level is mentioned everywhere. So reorder What is the level formula? just We will see. in the reorder level If we are talking about reorder level then Max Maximum Consumption in Reorder Level Which is the maximum reorder period This is the simplest formula, its maximum consumption into maximum reorder period Reorder period to you in your query It will be given, you do not need to remove it. It falls on 14 days, 21 days, 28 days, whatever that is. It will be given to you. So maximum reorder Period. after this I am taking the second color here. I told you the maximum. told the minimum I have. Told the reorder level. Reorder Let's mention quantity. So reorder Quantity: This is the same quantity where Returns when reordered So they are placed. There is no such There is no formula. After That Average If we talk about stock level then average What is stock level and average stock? Level? In average stock level we have minimum 1/2 of the stock level Your minimum stock level Let's add 1/2 of its reorder level. So half of the reorder level, which is reorder Level Sorry Reorder Quantity which is half When we add it to the minimum stock level If we give it then what do we get there? Average stock level is obtained. and the last if Let's talk about danger level because I have There is no space here now or is it above me here I can write it down so that all the formulas are They should be on the same page with you. So if I want to talk about it because If there is danger then I will use red color I have been. So our danger level is Our average consumption for that is We need to convert our average consumption to maximum Reorder Period for Emergency Purchases You must have been given in the question. Have to multiply. Maximum Reorder Period For Emergency Purchase. So if you remember this formula at all It should also happen. And remembering this, if you If you go, as I said, Questions that are easy for you Are. Ok? The questions will be easy. You only need You must remember the full form and you can answer the questions very well. I will apply it comfortably. So this question definitely You should have notes down in your notebook. And The second most important The component of material control is We call it the economic order quantity. Economic Order Quantity is quite a lot The questions have been seen. So let's look at the economic Orders also depend on quantity. Economic Order quantity means how many orders are placed at one time Place it in such a way that we also do not incur any loss and The person selling it should not suffer any loss. So It has only one formula which says that 2 * a * b / cs Definitely you would not have understood. of a Meaning here is the annual usage of that product What is your annual usage? B means cost on buying. Buying Cost Order at £10 per order plus your purchase price How much are you getting? So on buying cost Order The third thing is cost of per unit of Unit cost of material Is? So cost of per unit of material then s stands for cost of co Carrying and Storage. cost of carrying Carrying and storage How much is it costing you At this EOQ level i.e. Economic Order We define this at the level of quantity. how our A which gives us I want to order it again, how much should it be? This is a very important question Questions have been seen many times on this also. Are. Ok? Like for example on this also Getting a numerical question solved I want to because numerical questions on this have been asked and one if numerical questions I got it done here, so when I appeared in the exam Numerical figures will appear before you, then you Don't panic there, you can solve it. You will find it. So come with me here I have brought the exam question which is for you It was asked in the exam last year. So Please write it down with me and how You also get an idea of ​​the questions that come in the exam. It will work. The question is asking you to The information you have been given is Calculate the EOQ from the information. It was first reported that consumption It is of 600 units. The first detail you Was given. The second detail given to you is that the order The cost is ₹12 per order. You are looking to order at ₹12. After that It is said that carrying cost is 20% of your Is. Whose? 20% suspense will be revealed. When we solve this for a formula According to. and price per unit per unit What is the stated price? Unit price on Ours is ₹20. And you have been told that What is the economic order quantity? It happens? So solve this. of the solution I am picking up green here. Green color. Ok? All right. So we know the formula of EOQ Is. What does the EOQ formula say? They says under root in 2 * A * B / C * S Right? So that means 2 * 600 * 12 * 100 Upon ₹10 I did it because we You know, our question says that The order is at ₹12 and we are assuming it. That is, if we place 100 orders at once If we have placed it, then how can we Let's enter, apply the formula and get 20 20% of means it was 20 and it cost 20% per unit and cost per unit is 20 and The storage is also 20% of 20, that is 20 * 20 So when you solve this, your will come under the route 3600 And when you take it out from under the root, it Your 60 will be made i.e. 60 units once Your total storage to order in It will cost. Ok? Are we good? I I want you to note down the formula for this solution. Take it down. Ma'am Percentage ok yes Now it's fine. Right Ok? Moving forward, let us move forward. Solutions to the things that are important I am doing karate. Now let us We will talk about the inventory system and its Also, what is ABC analysis? What is Wade Analysis? FSA FSN What is analysis? about these things Also we will talk. So, we have solved the Question and let's move forward. Before proceeding further, let us understand the meaning of VD analysis. before talking about or ABC Before we talk about analysis Also about Billing of Materials I will talk a little bit about billing because Material by the way is quite self-contained by one name The explanatory topic is that the materials We have to bill them for that. it occurs. So it's a very self Explanatory topic but billing of material Since questions have come from, let us look at that too. Let's see what these questions are about. We do. So What Do We Mean When We Are Talking about billing of materials books When this topic was given to the people It didn't seem like it would be so important. So definitely in fact even me if age a If I saw the students, I would also feel that friend What is this billing of materials? Will get it done. So it's but obvious material Only after billing will payment be made. But billing of material is talking about Something Else. What does he say? It says That I am a master requisitionist. What are the Master Acquisitionists? This one There are posts like the one I gave you. Told that either we have centralized purchasing Either we decentralize Do the purchasing. But if we are talking About Cost Accounting, So It's Definite That We're Talking About the Centralized Purchasing. So in centralized purchasing The highest ranking person in your purchase department There is a manager whom we call a master. Also called acquisitionist, whose job was It is up to us to decide who will be the supplier. Who will take the material and where? material will be dropped, all these things that Is What We Call the Master Acquisitionist Those are the same things. Billing Off Here Now What does material mean? just this much The thing I wanted to tell you is that you have to Remember that there is a person we call are you master Requisitionist And this is the person who Purchases during Centralized Purchasing sits in the department and its work It happens that the purchase procedure of the material To move forward. So if I am very clear about Dec. Now we can move forward. And now we talk Can talk about one more thing. This The part that is about billing of materials In And That Is Called the Material Transfer Note. This in itself is a very This is an irrelevant topic. Yet I am telling You that these topics were left when they were Being Taught to the Students. But out of this Because questions have come. That Is Why We Are studying them. Sometimes what happens is that We do not provide any material for our department. Ordered. It was not used. Then We supplied that material in the same quantity. Some other department needs it. So rather Then giving it back to the purchase Department. Purchase Department Who came to return the material and to whom did they give that material? Needed? So the purchase department supplies the material What will he do other than give? Purchases Department material brought by you Will send you back there. A proof for this is needed. what is the name of the proof Is? Material Transfer Note. That is, when someone material from one department to another If the department goes then whose Basis goes on? that material transfer It goes on the basis of the note. Right? So or Dis Is all about billing of material. Now we move forward Can increase, can say about analysis What is the inventory system? How do we maintain the inventories? So, let's talk about the inventory system? First of all Drive in Detail Inventory System Before I do, I hope you It will be known that the inventory system is mainly There are two ways to maintain it. The The Periodic and the Perpetual Inventory System. If you don't know this, then Please keep it in your mind. because Knowing only this much will bring you to this level. We hope that you can solve its questions. Can. Periodic Inventory System and Perpetual Inventory System. about whom we I will talk about the meanings which include ABC Yes, FSN comes or VD comes. These All material systems that are Comes in periodic. In perpetual there is no There is no technique. So whatever Material System in your exam Important in the course is that is the Periodic Inventory System. so anyway Periodic Inventory System and Perpetual What is an inventory system? Perpetual In the inventory system, we continuously Keep monitoring. Perpetual means it Goes on forever and ever. so we are How much stock came in Concently Monitoring? How much stock arrived? How much stock arrived? So if Let us classify it in three words. What do we say here if you want? it is Continuous Stock Taking System. Continuous We keep watching. This continuous monitoring Lives in. So It Is The Continuous Stock Taking System. And when we're talking about the periodic Inventory system. So periodic inventory We talk about different analyses within the system itself. We do. Like ABC analysis, Like fast, slow, non moving analysis, Like Vital Essential Desirable Analysis. Such as seasonal and off-seasonal analysis. So this All the ways we talk about These methods are covered in our Which? All those methods are part of our periodic inventory. are covered in the system. Just as Continuously in the Perpetual Inventory System How much do we look at inventory systems? Expenses incurred, how much stock arrived, how much stock Went. One after another time table in periodic After a certain period of time, we will see how much It cost money. And Things Like That. ABC Analysis, FSN Analysis, VD Analysis and SOS Analysis. All four of these points They are very important. So let's go V Will See About Them. In ABC analysis, we to inventory Divided into categories A, B and C Are. The first column means technically Secondly, he talks about the percentage of items. What is their usage in that product? And the third one is how much they cost. He talks about it. And this is what we Named? ABC system. So basically if we are talking about the ABC system which a is a system with It comes in percentage of atoms. Percentage of items in When We Are Talking about Up to 8% 8%, many people call it 8 to 10. We'll keep it simple for ourselves. So this Up to 8% of the items are used in The total cost of this, if we calculate the cost Divide by 100% then it becomes 75% It comes. Upendra Kumar ji, good evening. After that B then B comes to a costing of 22%. item 22% is used and what is the costing Is? Of 18%. And after that if we and Let's talk about items. So it is 70% but What is their percentage? Of 7%. this this Maintain ABC analysis in this way is done. I Hope You All Are Writing It With me. We can also call ABC analysis If we are talking about category A then We are talking about the most important items. In A we talk about Mostant. B In We Are Talking They Are Average and See In We Are Saying That They Are Latent. soy This is ABC analysis. After this, which Our analysis is that this is the video Analysis or Vade Analysis. Ok? Ankit, its questions do not come. In this You just need to know. None of this There are no numerical questions. Correct Is? In VD analysis Vital Essentials And they have been talked about as desirable. So Vital I talk about those without whom we Without which our goods cannot be made They are vital. In Essential It is substitutable but it would be better if Let us work with that and in the desirable If it doesn't happen then there is no problem but if it does happen then It will be better okay Roshni hello hello lights Right, let's move on to this and the next one. Forest which is our second after Vital Essentials What does the FSN FSA talk about after Is? So FSA Talks About the Fast Slow and non-moving goods. Fast Moving Goods that fall into our inventory, fast They come and then quickly get used and go away. Let's go. Slow Moving Goods that are Inventory I will come after some time. gradually Consumes and non-moving goods which Never run out of our inventory Is. In our storage forever They remain maintained. Other than this SOS means seasonal and off-season goods. There are. This is generally used in those products Let's see which If the winter season has arrived in one season So you will see winter markets everywhere. Winter markets keep happening like this It seems like this market is completely stable for the next 2 months. It remains full and what has happened to the system now There was a time when you used to wear winter clothes. Expensive, but you still need winter clothes You can get very good clothes even for ₹200-₹300. It seems so. So there's a lot of weight behind it. The strategy works. whatever you see will be that Sweaters & Coats & Blazers like our A refugee market here in Gorakhpur It seems and in that refugee market he The products are available quite cheaply. 600 300 You can find some great blazers here. Will go. Basically this is a dumping to India There is a strategy to build ground. it Items from thrift stores Are. That means there are used clothes from foreign countries. This is what we don't know. So we I think it's quite good at a very cheap price. Are getting. So basically yes definitely they Are very stylish and really good looking. But I have read many journals behind these. So there is a thrift market in foreign countries. In our India, this is available in thrift markets. Brother, why should we buy clothes given by someone? Any poor man can wear it. End things like that that's all that's all Mentality. But these people in foreign countries Used clothes are available at thrift stores There are. These are brought into the collection. Meaning if today you buy a sweater worth Rs 200 or Rs 300 bought. Guess which one is looking very Beautiful and you are like that so much It's beautiful. Let me buy this. You also know It is not there but the one who is selling it, the sale He adds ₹50 or ₹20 and They are selling it in 200, 300, so how much is that? They are selling it for less and still making a profit. Will remain because those product manufacturers It is not happening, it is a used product. Right? So this is called The Dumping Ground Strategy. That is, in a country, your Dumping of used products of the country Do it like ground. Previously, this work only It was done in Africa. Because Africa I did not have that many resources. After that As our country becomes westernized is becoming, in the same way you Beautiful winters in India too Beautiful clothes to look at in the range of Rs 5 to 600 Will meet. which is actually not possible Give the first hand goods. So ya right. Ahead Let's grow in it. Well, we've gone into a lot of detail. This has been discussed. Now I will come I would like to and we will talk about how to make the material How many ways are there to maintain it and Hopefully this is our last point in the material. It will happen because after this we will move ahead in labor Will increase. Two hours have passed and I only have an hour now and I need you Everything has to be covered in this. So now some There is not much left. Our material is It was the heaviest. After this, in labor we About the Halsey Rowan Beadox Scheme Will read. and contract costing, Operating Costing, Process Costing, Job Costing Costing, Batch Costing and Unit Costing Pay. Unit costing is quite simple, though. They talk about the cost sheet. So we need basic information on these. I have to take it. And we're all good to go for the Exams. Right? So if we look at the material Let's talk about pricing. Like How We Are going to price the material issues. Pricing material Ishz. So The first one is the FIFO method, first end. First out, second in, last in First out third is simple average Method The fourth is the weighted average price method. As I told you, I After looking at your question paper thoroughly This one shot has been designed to show when What do I have to teach in sequence. So this type has been asked in this and the last is Highest in first out. It is important for you to get full Remember the forms. Now let's move ahead and look at the material. We do the final discussion and the material The final discussion talks about What is wastage? What are the types? So there would be wastage There are abnormal wastage and normal wastage About this. Ok? So let's take a look. What is normal wastage and abnormal wastage? It happens? See There are two types of waste. The first There is normal wastage. Ma'am the Head Office of ICWA Anushka of ICWA The office is located in New Delhi Is. Ok? Piyush I think almost one hour Peacocks can say 1 hour 15 minutes more than that Classes of not more than 3.5 hours She is going to live. Ok? of sleep or waste If we were to talk, ours would be the first is normal wastage And the second is abnormal waste. I probably said a little bit about it I also told you during the lecture that the one who To improve the skills of our workers In Ma'am at least Lifo and Fifu last end First out what happens in leafo Products come last, they come first Is removed. This happens in goods like this which are perishable and spoil quickly There are. Like you did at the vegetable cart You must have seen that it is an apple cart. Apples There is a cart parked there. But one is ₹40 per kg. One It is ₹60 per kg. So this one for ₹40 is quick It's going to get worse. So tell them quickly Have to take it out. Ok? First in End FIFO And first out is what comes first and gets spoiled quickly. If it doesn't happen then he is fired. Ok? Right? So talking about wastage Was. I talked about normal and abnormal. About this. See Normal Non Avoidable There are. These are some things that you You should definitely know. In the exam, you Will be asked. So these are non-avoidable expenses. Are. Meaning these cannot be avoided. These There will definitely be expenses. They are non-avoidable Such as evaporation of any product If it evaporates, I Just took a chemical sample or leakage If it is liquid then it is obviously pilferage or there will be leakage and in the same way if we Let's talk about abnormal in Abnormal I can say that our laborers are skilled. If not then not skilled labours or if It was stolen, but it is not always like this. So here it is every Saturday at 9:00 pm at your house Theft happens and you keep waiting for the thief. Are. So theft happens sometimes. such incidents Theft or careless handling is a negligence Went. You didn't pay attention, you paid attention If it had happened then this wastage would not have happened. So That Can Be One Thing. Well, we had a discussion on wastage. Second What is there is scrap. So what about scrap? Let me see. What is scrap? If we're covering scrap here So scrap means fragments. Or incidental residue. Fragments Meaning either some parts of something are left have some value in the market or Then there is some incidental residue whose There is value in the market. So generally we are here Let's talk about things that Even after dismantling, there is a There is good value. Ok? For Example iron, iron, steel when any car, any bike, any vehicle, if an automobile is made then that entire Melting down the body and putting it back together in a new machine The design is done. So if there is a little If parts are made from this also then that market We provide you a good rate. So what have we written to them here? that scrap means whatever is fragmentary or The residual value will be his. Right? Ok? Now we can move on and talk. You can talk about labor. of materials We have discussed loss of material due to Fire is also Anushka an example of Abnormal because it fires repeatedly. It will not happen. Isn't it? Come on, we've arrived now On to our next topic, which is Inside important topic and after that all The topic is a 15-minute task for us. So V Are going to talk about what are labor. And The most important thing in labor That is going to be the scheme. Incentive Scheme of a Labour. So let's come let's See. So We Have Moved Forward for Labour. I had a little discussion with you during labor. Done. I gave you an overview What is labor? How does labor Does it work? Now here we are talking do. Is. Good direct and indirect We have also talked about labour. Still a little A discussion is possible brother because now this Since we have come to the topic, this is very It would be unfair. If we don't discuss this Determine whether it is direct labor or indirect labor. What happens? Right? So or Let's See Direct labor means that labor Which can be identified first. So He is being identified here It is possible to specify a cost center. so which can Be identified with cost center or cost This work was done in the factory of the unit Is. Generally, we are talking about factories here. We do. So the labour which is direct labour I'm talking about the labor cost. It is identified by the centre. That Is What We Call Direct Labor. and this Direct labor is engaged in which process? It happens? Is. In which process does it work? It happens. So basically this raw material Finished Product in Finished Product It works to convert. So engaged Engaged in conversion of raw material to Finish products. That is, these raw materials to convert it into a finished product It works. Engaged in convert of raw Material into finished goods. This is direct labor. so what is Indirect labor? We will see. of another color I am using it here. Yellow, however, won't make much difference. Butt is. Well, there is a significant difference. What is indirect labor? So yes There is indirect labor which is identified Cannot be done for any cost. Like cannot be identified. With particular cost sorry particular cost Their identification is done at the centre here. It is possible that through which cost center These will be recognized. Right? so it Cannot be identified with the particular Cost center. As if he were a supervisor, Became a peon, became a clerk. So you know In which cost centers will you put it? Brother If the factory guy is asking him for tea If so, he is asking for office also. ok Pankaj Kumar Pratima I think it's you good Afternoon Statue We can talk about the peon. So that Identify indirect labor that is Can't be done. that can be Classified on the basis of what? that can B. Classified on the Basis of Indirect Labor. Right? Ok. Now let's talk a little bit How many departments of labor are there? Now this is one topic. that you have been doing for the last two years Pick up the cost accounting book. it There was no topic in it. but then What did the university do? ask questions given that what are the five departments of Labor? So I don't know about recent ones yet. It is either in the books or it is not. But this Reading is very important for us. So Are there five departments in which We do the division of labor. write the first Let's first take the organization of Labour Department. Organization of Labor Department. So what are they? The first is the personal department. This People call it personal. But It Is Pronounced as a personnel department. So The first one is the personnel department. Who sees who came and who did not go. The time recording department looks after this How long did each person work? Is. It was good that you came. did you work Did you come on time and leave on time or not? Just came, did biometrics and left. Right Mr Ashraf ji good afternoon Pratima welcome Rahul Pal ji good afternoon. The second occurs after the time recording Payroll. who decides which How much payroll to which department worker? Payment has to be made. Engineering after that There is a department. This is a very task If it is technical then this department Is used. And the Last Is What? Cost Accounting Department. The cost sheet work that I told you about. So basically the final cost is There is an accounting department. Students name these five departments You have to do it by heart because in these Questions have come repeatedly from. dolphin Advertisement G Good afternoon. Your name I am not getting it clear. So it's it will be really really pleased if you Can you tell me what's your name? generally those Students' comments help me answer them. It is easy for those whose names come to me Is. If your YouTube user handle is in any If it is by another name, I will classify it. I am not able to get any student to join or any spamming messages. So these R The Five Departments. Personal There is a department, time recording There is payroll, there is engineering and cost accounting department It happens. In which we give the labor departments Let's divide. It is very important that you I remember the names of these five very well. Go. Ok? Happiness it's you. All right. Khushi Good Afternoon. Now let us move ahead in this. And About Time Recording Department Let me tell you one important thing Because I hope you'll be with me Must be writing. So all these graphs will be useful to you. Will come. If the paper becomes even a little tough. Time Mainly two tasks of the recording department It happens. The first is timekeeping. Is it time for work or job? What scheduling has to be done in a proper way and the other would be This is time booking. What time is fixed What was done by our worker at the same time Pay came? Worked at the same time. On Deadline How much overtime did you work? So time This use of the recording department It happens. Right? Devesh Gupta ji good Afternoon. Let us move ahead in this and now let us talk a little What does time keeping mean? Look, this topic is not that much It may not look important. It may seem like this is a job that Time recording department is done except. Nothing more than that. But time Keeping has been asked questions many times. So We will look at these in a little detail. What is time keeping? C If we are talking about timekeeping. So the time keeping department of every worker Keeps records. his arrival at the factory Time and Ah Smriti Personal Department The job of this is to employ people, to see who is there for him Perfect and then give him the job. Ok? So or time keeping department. So time What is the meaning of keeping department? I have? Time Keeping Department Every Worker Keeps records of arrivals and departures. So What should we write about it? Worker Entering When is the worker entering? and when is the factory worker taking leave To. So entering and leaving right Right? After this, what are the methods? Of keeping? This is very important for you To know for So there are two methods of timekeeping. There are. The first is the manual method, which Manual records are maintained. And The second is the mechanical method. and mechanical methods If we talk about it. Good manual method There are also two more methods in which Let me discuss it with you. In the manual method The first thing that comes to mind is attendance. register. There is an attendance register here. which is also known as muster roll. They say. What do you say? Muster Knot Mustard Mustard Roll. And the second method is manual There is token or disk method. Here every Assigns a token or disk to the worker Are. Much like the ID card that you get from your college You get a unique code in it. It is of digits. Ok? After that That's it, I'm done with Manuel. If we talk about technical, mechanical I mean, one is mechanical and the other is manual. The second one is our mechanical one. So in mechanical if we are talking about In mechanical There are time clock methods. Other than this Key recorder systems are. So you Just remember their names that in mechanical What comes with and what comes in the manual. Right now we only talked about time keeping. Correct Is? Operating cost is used. Anushka Use of Operating Costs in Hotels is done. After that I talked about time keeping. I did it. The next thing I want to do here is That is off time booking. how long does that work He did? So what does this fall into? Time Comes in booking. Now for time booking also What are the methods? Just look. The first method of time booking is We say daily Time sheet maintained on daily basis If yes, then daily time Sheet System Ok After that what is next We maintain a weekly time sheet. Weekly Time Sheets System Weekly Time Sheet System. Ok. After that job cards are maintained Are. Prepare a card for each job is done. So what do we call this Are? Job cards. After the job cards There is a labor cost card. And Then It Is Piece by Piece Work Card They are made accordingly. Ok? So Peace Work Card And this is the basis. Ok? after this Some small things What happens overtime Is? So Overtime everything is important Kajal. If you have almost 50 to 60 hours syllabus If it is being covered in 3 hours then you It is about assuming that what you are taught Whatever is happening is important. Ok? So Yes, we have discussed this. And now the second The thing I am talking about is overtime and idle. Look up what overtime means. Working beyond the stipulated time. So that It is overtime and if you are less than the stipulated time If you have worked then that is idle time. Ok? Singham Aditya Singh ji, which one is yours tomorrow? There is an exam, pay more attention to it Kajal Which exam is the one you are most worried about? Don't be, she is a girl, she must be nearby. will go Ok After this, to discuss overtime and idol After that, the next thing is our labor turnover. Let's see what happens. What is meant by labor turnover? So Basically, labor turnover means that How many laborers joined And how many laborers left? If in a company If labor turnover is high then it means that Organization If labor turnover is high in a company So that organization is doing good work. She is not doing it. Like generally when we go somewhere If we have to do a job then in such a situation we first Let's start from a small place where We have work experience and work Training is available. Then we move forward. Ok? So brother, he becomes our labor. Turnover. Ok? All right. So if we talk about labor turnover If we do this, then labor turnover is the highest Separation Rate Method. This is the first one. by which this information It should be estimated what is the labour turnover in the company Used to be. How many people have come in how many days? And how many people have gone in how many days. So That is what we call separation ah rate method. And how does the separation rate method work? Let's see if he does. So separation rate method Does labor turnover equal to the number of Workers' Left During the Period. number of workers Left during a period Upon Average number of workers in the period Were there total workers? So the average number of workers in the period Divided by 100 by the separation rate method It works. After that whatever happens next There is a replacement method. So replacement The method is also quite simple. such as separation method We have done this in numbers of workers left. So what do we do in the replacement method? Are? In the substitution method, we find the number of Let's talk about replacement in a period How many workers have been replaced? So Number of replacements And we take the average number back and this is our The denominator will always be the same. So the average Number * 100 OK? And the last one is ours Flux Rate Method. So the labor turnover The third method is which is called the Flux Rate Method. How is this flux rate Does it work from? If we talk about flux rate do Number of workers left Thank you sir. Number of Workers Left Plus Number of Workers Replaced Plus Number of workers replaced Once again the same average Number int 100 OK. So this is the flux rate Method. Now let us read further into it. If we talk about labor turnover, labor There are just so many things that come into turnover. The second important thing you should know is Which is asked many times in the exam What is the meaning of time and motion study? Is? What do you understand by time and Motion study? Okay, we will tell Ravi Sir that first Also teach those ok komal ma'am can I get the pdf See PDF Komal, I read something from the PDF I am not teaching anything I am writing it here on the board in front of you. Komal, you keep writing whatever I am writing. Ok? So what is time study? Many questions from this have come in the book. These Explained very briefly in many books Has been given. But one question for you is time study. You will also get to see it and you will also get a motion This can also be seen from the study. Kartik ji is saying ma'am when will the numerical Will you do it? Kartik ji, did you know about the charioteer? Bought a batch? Because it's a one shot Kartik and in this we will see all the chapters. Covering the book. So here we are Will be able to do the same numericals Kartik which were repeatedly asked in the exam Are. Like I got it done on EOQ. Like which one did I get done? Two Got it done. Got it done on the cost sheet. Ok Karthik. So if you haven't taken the charioteer So you take the charioteer. Then numerical in it Classes are available for everything. You will get a 10 minute break Krishna. Bus a little while and I think after 10 minutes I Let me give you a 10 minute break. Meaning Labor If I cover it and give a 10 minute break Then we just have to look at the remaining units. Will fall. Ok? Let go First thing is time study. This is an ID Pappu CG 143 Okay, so sir must be sitting there, right here. Tell us to block this ID Pappu CG 143 useless comments are blocking him Get it done immediately Yes, we were talking about time study. People so what is time study in time study here we The Observing Meaning, let's observe what time ends Recording the Time Observing the Time And the work of recording time would have been This is what we call time study. Correct Is? Basically, what we see here is that How much Idle to do any work It will take time. Right? After that Yes sir, you have said it beforehand and come. Because of useless comments, students Genuine comments don't reach me. After that, The Next One is Motion Study. So from motion study we know that for any To do any work efficiently What is your question? Ask Anushka. To do any work efficiently In which motion do we have to remain? Who What motion does one have to drive? like for Example, you all stay in your schools Will be. So yes Anil, tomorrow's batch is I will tell you about the company law that will be applicable. I will give only MCQs. In motion study, I am taking the work as an example Was. When you all are in your school And you must be saying to your teacher, ma'am please May I go to use the washroom or please ma'am May I go to fill the water bottle. ma'am says okay go you used to go and what you You used to walk around the entire hallway Even if two classes from your classroom used to come, Leaving aside your washroom and your RO You are filtered and you go around the entire corridor used to come from. Ok? Time and Motion Study It is considered as waste. means time The study says that at least look at us By working on time we get the best out of our work. Have to give. Ok? ma'am a process loss that Does not affect the cost per unit. Process The losses incurred on the cost Does not affect the unit. Anushka This is the process you asked about. It is a question of costing. Ok? And when we When we come to process costing, we will We will discuss our process that is lost which does not affect the cost unit. What do we call that? Process We will talk about costing when we come. this ok Loss Process Allright Moving on Motion Study So if we talk about method study motion study Anushka Sharma is doing her first semester well. Is of abnormal waste. Ok? Him It is called abnormal waste. The rest of the normal wastages will be further We keep adjusting. Ok? But right now Pay attention here Anushka, we will come to that. We will discuss that also. Right? Right? Motion Study. So The Most Efficient Way to Do a Work. Efficient They to do A work what do we call that? Motion Study says. So students are we good? Tender price? There is no tender price In this. Your name is not clear to me. You Tell us your correct first name. This is the name Yours is becoming quite strange. Ok? All right. Anushka I hope that's clear for You. Discuss time and motion study We have taken it. Now Another Very Important Krishna Tulsyan if you are connected to me now with. So let me tell you this is the most important thing. And after that we take a 10 minute break. You can take it. And this is talking about the Wage payment. Ok? No, Anil Kumar. Fixed cost is a question I ask. Student actually asked in my college Ma'am, what is this fixed cost scene? See Unit Increases on Fixed Cost Decrease. When production increases Fixed cost per unit decreases significantly You have asked a confusing question. These It would be nice. I will teach you in MCQs Let me explain. Just understand that we are fixed The cost is always the same. But Same thing if our production is more, If profit is high then same fixed cost We will feel less heavy. And if our Production and profit are low, then high It will feel heavy. Ok? So Krishnaji, ask me for a 10 minute break. Were living. So Krishna ji, once we veg We will destroy the payment system. So we will abolish the labor system, after which We can go on a 10 minute break. Correct Is? ok yes so wage payment Amrita class has been going on for about 2 1/2 hours now I want to run the class for another hour. In which a break of 10 minutes is also included. So what else? Three ways to pay waste It happens. Ok? First of all That's covered. Happiness in Starting I have already told you. So the first The thing is that it is the time rate system. Time Rate It is also simple. We tell you how many worked late, how many hours worked, How many hours worked and pay accordingly Are. Piece rate is also easy because it How many pieces were made, the number of pieces made, We make payment accordingly. This is also easy It happens. The problem we face is incentives. In schemes. Because incentive schemes We have many great people in our schemes. who say this is the way it is, That's his way. like Halsey, Beadox, Matriculation, all these things. Ok? Your name So tell me first. Your name is very It's a bit weird. Chapter wise is not going on. These It is going chronologically. If you start If you were connected with This is a one shot. Right? Time Rate Let us talk about it. Now look at the time rate. It is much simpler. don't mind anything Is. How many hours did you work? Sleep Hours How much will you get for hours worked and per hour? So hours worked into rate per hour. The piece rate system is also very simple. In that we They ask, how many pieces did you make? We What is the number of units produced? Number of units produced into How many units means how much of one unit Will I get payment? So Rs per unit I I said it when I started it Since I started this Sir, is he a sir? Devansh. If he is a sir, then ask him Say this is an ID by doing Kartik Vegi Block him, okay yes sir, so if If you are there then say it, otherwise we will do it. Are. If we talk about incentive scheme So incentive scheme What happens? In the incentive scheme, if we Talk Look at the different ones we have sit dawn. We have different schemes Incentive schemes and different writers are given by. Ok? As Halsey, like Rowan, like Metric, like These are the different schemes we have. Are. And the incentive scheme they gave So if this system of wage payment comes You will do it very easily. But if If this system comes then you will have problems. Will come. Right? So or Let's Get Started. First of all I think students lose their patience. It is still happening. But I want to get an incentive scheme done. I will proceed further in this only after that. So let's talk About Halsey. Halsey, our first cost accountant This is their most important thing. Halsey just He said this much that look, we are on time saved. Focus on how much time is saved Is. Ok? So The Next One Is Aditya Singh of first semester right now The exam is much later. Right? So it's time Now. Ok? my first semester Your communication skills before the exam I will get the one-shots and MCQs done. Right? All right. Let go. So yes sir. Time in Halsey Saved equals to whatever standard time Is. Meaning how much we thought that the standard How much time will it take? Ok? And after this How much actual time did we take? actual Time taken. Leave it. Sir, this is some God knows what was his name Karthik Karthik yes block him Actual time taken is fine, so we will That is Halsey's plan. Halsey's plan. The Next One After Halsey Is Rowan Rowan's most questions to you If you get to see it, see what Rowan said. According to Rohan's plan, here we One Bonus has to be given to the worker. So Rohan says that the bonus you have to pay has time Saved Upon Standard Time was how much of it? How much time did he save and how much What was the standard time and the rate per hour how much was the hourly work And how much actual time did he work? Correct Is? So this was Halsey's plan. Rowan's This was the plan. Let us move ahead in this. For us after Hales and Ron Maric's Differential Peace System It is important. Ok? Students should maintain patience Keep it. After the labor system, I will give you 10 I'll give you a minute's break. Right? Butt Labor Our syllabus as soon as the system ends Almost 60% will be finished. So this load It will reduce considerably. So Marik said that who scored 83% i.e. 83% from to Standard output is worked out. So 83% of the standard output he worked on have done The worker is paid the same piece rate as decided. Payment should be made on Pay. Ok? 83% of He has given the first margin. Second It is written that if from 83% If up to 11% work has been done then in such a case 110% of the ordinary piece rate should be given. Here were paying ordinary and if 83% If the accuracy is above and is up to 100% then He should be paid at the rate of Rs 110. And He said that if he is 100 Or if it is above 120 accuracy then Sorry in such cases with 100% accuracy if He's gone up, no matter how accurate. have gone Then he gets 120% of the piece rate should be given. Ok? This is what we have been told. Apart from this there are other systems also. As There is a system of Bedox. Beadox's Apart from this, you will also get to see that Gatsk There is also a system of. But Beadox and Questions from gang tax have not yet come. Are. Mainly the questions you have to see Meet, he's the same person as Merrick and Taylor. The output asks you questions. Correct Is? After that We will move forward in this. So now we will talk How is overhead classified? Is? And tell me again about the overhead martik Give it. Look at this one from Marik, it's saying 83% If the work is good then whatever you have said should be given as much Two. Accuracy has gone from 83 to 100, so 110 Give a piece rate of Rs. 100 and better than Rs. 100 if that If you have done it then give me 120. Ok? After this 10 We will go for a minute break and then for a 10 minute break. See after the break, is it sir? 10 minutes I'll see you after the break. We We will discuss the classification of overheads. And if job costing, process costing The little things on which the theory There are questions about this. Ok? So yes, I will meet you after 10 minutes. So Go and have some tea or water and come back or I will see you guys after 10 minutes is Never mind, it's fine First Hello Hello Hello hello hello students come back 10 It's been a minute, brother. Hello Hello Hello Mic Check Hello Everyone come and see your classmates and friends Call him. Why brother? Time is over. Come on. Yes students, I guess we are all on You can start the board. We are the last 50 minutes and in this 50 minutes we cost Completely devouring accounting Is. Ok? Hello everyone. Welcome back Mr Ashraf ji. Amit ji, Manish, Moral Sir, you also teach. Sir will teach sir. Sir all Will teach. All right students, so now we Going to introduce overheads. And Introduction of Overheads Overheads is the only thing that if we cover we almost You will complete 75 to 80% of the questions. and the rest are process costing, batch costing The theories are very small. Numericals that came in the exam He has asked, I will definitely explain it to you. So the last 50 minutes are for your cooperation. I need it again. And where is my pen? Here it is. Let go. So yes everyone. Pull your socks up. Let's Get ready. We are going to start Overheads. Let go. Yes sir. Overheads. What I thought of overheads, sir and when I saw it When I started reading, it was pretty much the same. Till and till when I did the overheads I started studying during my CA days. I understand what that means, no, no. It's not something that goes over your head Concept. If the concept is understood then Its questions are answered very easily. So The first thing you have to understand The first thing you should understand is good Amit it Vibhor Good to see you Vibhor after such a Long term right, so start with overheads. Discussion Let's Talk About Referring to overheads, if we say The first thing we need to understand about overheads is How is its function wise? Classification takes place. Right? then the function Wise we talked about factory overhead would have Is. Function wise our administrative overhead and Function wise our selling and There are distribution overheads. Then What do these become for us? Function There is wise distribution. So this function and This is their sorry This is function wise and this is function wise. There is distribution. Right? after that which The second one is element wise. What How do we classify it? So If we talk element wise then element wise here we have because Now that we have discussed the direct We have indirect material, a There is indirect labor and indirect There are expenses. So this is for us Element wise classification has been done. I Hope students, you will do all these things with me. You must be making it because the paper is yours and mine No. Ok? And after element wise which is our second There is classification, that is behavior Wise and Behavior Wise I talked about also about you that our fixed our variable and our cm Variable fixed expenses, if any So those expenses like rent of the factory if If we are paying rent, it will always remain the same. It doesn't matter what your production is How many activities are happening and not happening Yes, but if we talk about the material then Material costs will vary completely in your production process. Right? So yes Yes. Let go Okay Vibhor, yes I do remember Vibhor. All right. Come on now we can talk about if We have talked so far, so now let's talk about We can talk about labour only. And about things because of the way it is I discussed everything with you. It was about labor. Now if we talk about overheads further So all this stuff about overheads. I had discussed it. Now Understand This one variant thing. If we look at the overhead If we are discussing then absorption of Overhead is a very important topic. For your exam. absorption of Overhead is a very small thing. So much She doesn't seem important. But what Is there absorption of overhead? just We will see. let's look at. what do you what do We understand why? when we are talking About absorption of overhead? C If we talk about absorption So what does absorption mean? of overheads? of absorption of overhead It means how the overheads should be allocated to any product. Manish Sagar ji is writing Big Fan. Good Ok. Whose big fan? I mean, I look cute. I am Manish Sagar ji, ok look at it sir What are you doing, get them blocked? Okay Manish Sagar, okay, let's see if we Talking about absorption, if R Talking About Absorption of Overheads How Absorption Happens: Have a Look at It Absorption of overheads means that how are you allocating how are you allocating And how are you charging these? Expenses. That is, expenses have to be finalized. Charging the product. Have you said? Is Not there? Charging on the final product. Right? So Allocation End What's my fee allocation and charging? The Overheads. I mean, like if Maggi today How much do you get it for in the market? Maggi? 15 No, how much is that big one? comes to 15 Maybe it is. So if there is a Maggi in the market Whatever you are getting for Rs 15, it is definitely a thing. The thing is that Maggi is not made in one go. Sir is with him. So Talk to Him on My Phone. So obviously our Maggi. No no you just have to tell to block this ID. Talk to this this id man. Manish Sagar Tell Him To Block This. The goods in our products For example, if we said that Maggi is available for Rs 15 Is. Sir Block This Manish Sagar What Kind of people are joining sir Ma'am is cute, ma'am is so and so, so and so. They want everything except studies. Thank you sir. Right sorry for the disturbance student hote There are some elements that educators They come to trouble you so that you too Are you worried? So we have blocked it. Allright Come on Sandhya Yadav ji, let's talk in Hindi only. I have been. in some other language My language skills are not that good. I want to communicate with you in another language. I can Ok? So yes, allocation and Charging as I said Maggi I said that it is definitely a matter of 1000. I don't know how many Maggis are there in lakhs They are making it together and the entire The cost is fine, lakhs are being spent on them. If you assume a hypothetical I know Maggi is available for ₹15. Look, our total expenditure is ₹1 lakh. How many Maggis to make, total 1500 It doesn't even cost Rs 1500 to make Maggi. Yes, I am saying 15 lakhs, so accept it as 1500 Our work in making Maggi 15 lakhs has been spent on our construction and How much has Maggi come in at 1.5 lakhs so now we This is our total cost and this unit is ours If it is produced then how do we decide from this We will find out how much ₹10 will cost us. It will cost, we mean the price of one Maggi If I keep ₹10 which I definitely did not Because what I taught is that the cost What else do we associate with? of the cost We also add profit margin. So Suppose the same profit margin is ₹5. The price of Maggi increased to Rs 15. So cost Absorption means that the I am preparing for the cost accounting exam. I am getting it done, Tanishka. Ok? Joe Third semester exam or any other If there is a cost accounting exam then the syllabus That's it. So yes, these 15 lakh Maggis It was made and the total cost came to 15 lakhs and ₹1.5 lakh Maggis were made. So brother, the cost of one Maggi is ₹10. We added the profit. So it will just be Complete in next 40 minutes. Ok? Let's move forward Let's grow. Where numericals were asked in the exam We will get that numerical installed for you people. Don't worry. Ok? From where the numerical If he did not come then we would not spend time there. Can. Can't waste extra time. Now let us talk a little about machine R rate. about. There's one, right, chapter machine, R rate, and It is quite surprising that someone The students have not been taught. I I also saw it in the exam and asked the children Was. So how does the machine R rate work? Is? The students were not aware of this. See Only theoretical questions came from this chapter. Are. The numerical question that came up was I have also brought numerical questions. They I will get it installed for you too. of that numerical On this basis you can read all the sections of this chapter. You will put the questions. So our brother who The next topic is that is machine r rate. Machine R that is how your machine is rated. Good Is he understanding anything about this? Its If you can understand anything from the name of the chapter itself May be. Ok? So yes sir. Yes very good Vibhor. The exam will go well Yours. There is another half hour lecture. 3 hours It's Enough for the One Shot That Makes You So Happy Get good marks. Just look at the machine What does the name Rate make us think? when we Any machine in any factory We do. The production process which Tex Place. So here the production If I am referring to you about the process Am. Production process by hours It works. For example, if I were to buy a machine today I want to set up a factory and I She went to get the machine and I said, brother, this How much does the machine cost? So he said Or 2 crore? We said okay it is 2 crores. Ok fine. How many hours will this machine last? work? How many hours of production can this machine Can it work? He said, ma'am, this The machine has been in production for 5000 hours without She can stop it. So 50,000 hours is the Total time that machine can work. So when we The machine that you have used till now in 11th and 12th You must have read about depreciation and Depreciation will be read on yearly basis Must have read it. But genuinely when we cost If we talk about accounting, then cost If you talk about any machine in accounting If you do it, it is brought according to the hourly rate that How will that work? That is what is machine R. Reed. There are some keywords that you should write down. Needed And what does this mean? So its I mean, The Cost of I Hope, you're writing With me. Absolutely write it. Because Coffee It is not taught in colleges and Questions have come from this. Two questions have come up every Year. Based on the questions that have come I am getting these notes written. The Cost of Running a machine. The Cost of Running a Machine For every hour. in an hour In 1 hour that How much is the machine costing? Ok? So Tanishka Everything is there. Because I have Said earlier also we have 60 hours of lectures are covering in 3 hours. So you are this Let's just believe that you have so much faith in me that this This is all that I'm teaching. Which is important. Because it is definitely a thing Isn't it 8 hours sorry 60 hours and 3 hours There is a lot of difference. Right? So yes sir. So the Cost of running a machine per hour is known as What? Machine R rate. a small question like Is. Suppose I am writing here. For For example, I am taking another color here. Pay. Let's go with a pistol pink. Ok? So Let's see an example, suppose I said that Over head For Machine A What is the overhead for machine A? I said. I said students it is 10,000 end number of machine hours and how much machine hours I spoke? I said students it is 5000. So tell me now what is the rate of the machine? Happened? So it's very simple. What will you do? Your overhead is 10,000 machine hours. You divide that by the number of machine hours You will do it. That means ₹2 per hour The margin of your machine rate method It is sitting, which means ₹2 as per the machine R rate But according to R you did the work. Ok good bulb ok yes yes exactly Krishna We generally look at it to see us We get it when we buy electrical appliances We do. yes very good alright moving on There are machines in this at R rate Machine R Rate Pay Students One question if we Do what is asked in the exam, then do this It is very important. Ok? Because In the exam, as the students said, I am doing numerical, get numerical done. But I can take those numericals here. I am one of those who have appeared in the exams. because these 3 It is a 1/2 hour long one shot. So because the machine A numerical analysis of the R rate has been done and that I have the numerical right now. So we that solve and we'll see machine R rate How is it solved? So quickly this The question is. Please write with me. Well, this was also a basic question. this also The question was one that the students did not understand. That only by dividing it in it, it had to be told that Two ₹2 will be worked out as per R. Yes Yes. So see how we prepare for the exam. Raising a question and how to solve it do. So have a look at it. He had the question I had said that I was paying the cost of the machine here. Pay machine cost is written in short Am. The cost of the machine was ₹0000 20,000 The machinery was ours and its scrap value Meaning when that machine retired it would be 1000 It is of. 1000 will be available in scrap. cost of repairs Month by month on month basis According to the calculation, the repair cost was ₹225 Was. Ok? And standing charges means that Expenses that are incurred whether the machine runs or not Expenses are bound to happen. So what There were standing charges for the machine too but How many were there per month? ₹150 150 ok. After that, where does effective working life mean? machine without any repair and without any He could do the work of a mechanic. So The effective working life of the machine How much was it? 1000 Hours. 1000 hours of machine life Working without any hindrances She was capable. And the running time was per month. Meaning How long does that machine last in a month? Did it last for hours? So running time per month The machine had 150 hours. It was 150 hours. Correct Is? and Power Used by Machine. of the machine How much electricity was used by That 10 units Used to pay per hour. in which 50 paise The price was per unit. And so I told you It was found that the machine R rate was per hour. Tell me from So I hope you answered this question must have written it down and before going to the exam Please revise this question once. Take it because it is asked in the exam itself. The question is gone. I just changed the numbers. Have done. I don't remember it very vividly But I think it was 250, it was 400, but The question was pretty much the same. Ok? So Yes sir we should start. And yes, in that There was no running time. I measured the running time I added it because a little bit The question level goes up. A Statistics First of all, please tell me your name. Let me then answer your question for me. It will be easier to give. So quickly, just do it We do the solution. First of all we Standing is to divide the charges Charges means whatever charges you want Whether there is production work or not, they will be there. And the second is variable expenses. That is, this which deviates along with production do. Here I am picking up the other Best in color pen and standing charges In the first question, you are given the standing We will write the charges per month here. Correct Is? So standing charges per month in which We're told that the running time per month How much is it? Ok? Running time per month is ours 150 hours. So what will be the standing charges? Our? Our standing charges were 150 and the machine How much has it gone? It has lasted 150 hours. So that means Our total standing charges will be Only ₹1. Ok? Now getting another color I am. Let's talk about variable expenses. So in variable expenses, first of all we have to Students have to calculate depreciation. Because we have also been given scrap value Is. So we know the formula for depreciation. Is. Cost Price Up Scrap Value Divided by Useful Life. So if we do this If we put the formula then the cost of the machine The price we got is 20,000 scrap The value we are told is 1000 and the machine How many hours and what is its effective life? 10,000 So we'll just solve this and we'll Depreciation will be given here at 1.90 This becomes a variable expense. after this As far as repairs are concerned, repairs We have been told ₹225. And how long does the machine last? doing? How many hours does it run in a month? 150 hours. So that means 225 / 150 this will be our 1 50. After this how much power is the unit using Is there machinery? So we're told that 10 unit is being used and Rs. 50 per unit We will do it in 5 rupees i.e. ₹5 So now we have to calculate here. that a machine r rate per hour of that machine What is the price, standing and everything else? If you add the variable then here you will get will get ₹9 ₹9.40 Your machine is a solution of the rate method. Ok? Let go After this we can move forward and now we We can talk about our next topic. Which is in unit and output costing. Now We have come to those little chapters that Ours are Unit Costing, Output Costing, Job Costing. their theories We can see. So or let's get Started. first thing first What is job costing or job order costing? It happens? No problem Kanika, I hope so. That you did well in your exam. So the job Costing Let's Talk About This. First of all, we now have the Student Job Costing Suddenly, those who read in these half an hour These are completely exam oriented. It is going to be about how these questions come up. So the first thing you should look at is this In batches. ok divyanshu i will try Am. Although this is not my subject, I will talk to the team. And it is possible we Will Post It. Right? See the most Now you have to understand the important thing. Job Costing, Batch Costing, Process Costing, Operating Costing. where-which Is this the case in factories? like if we Talking about job costing So remember job costing. These Where does it appear? These examples are very It is important. repeatedly in exams Examples have been asked. So This Is Variant. First, go to the repair shops. Job costing is used. So the The first thing is the repair shops. After that Job costing is also done in printing presses. Work is done accordingly. I am hoping You are writing this example with me. Will be. You will also find this in the printing press. Use is visible. Along with this If the paper makes you tough, then you might Got to see examples. Although I don't The third example seems to be very rare. This is an example. Maybe I won't get to see it. But Because if the paper is tough then it will be visible. This talks about painting or decorating. of decoration. Ok? So painting and About decorating and production if It is being done as per the article. So Production According to Article. Ok? What are all these things in? Do you come? This comes under job costing. You will find this very useful in the repair shop. You look carefully. In the repair shop It is used. in the printing press It is used. Ok? next thing About Contract Costing. So See what is contract costing? If I'm talking about contracts Where is costing used? of contract costing? So yes Contract costing is mainly used by you Will see use. There are four examples of this and only four examples There are only four other examples of this, all four of which The question has come up many times. I mean, it's been four times. Costing paper. So every example By quoting one of these examples to you I will give it. The first thing is construction. A road is being built, a bridge is being built, so there The work you will see The contract will be for costing. So if There is construction work, then there is the ship. building. If a ship is being built, the ship Contract costing is also yours from the building. Will come. After that, if there is architectural work If it is going on then our architectural work is also Our architectural work also comes from there. Buildings are being constructed. architectural She comes to the works. and besides that Along with the engineers who are there. So If we talk about construction engineers We do. Right? Let go. Then the next one Next after contract costing Okay, here I have given you job costing. I told you, okay, I signed the contract. costing was stated And the next one is batch costing so If we talk about batch costing What happens in batch costing? In the beginning, when I was giving the introduction That's when I told you about batch costing. I am a small lot dealer Ankit, if you watch this lecture twice And try these notes two to three times. It will be very good to study, you will appear in the exam. Speaking very well means that out of 50 Approximately 35 to 36 questions from your one shot. Will get trapped. ok Ankit. I hope that is clear. So yes, readymade garments are made The clothes that are there. So we are talking about That. readymade garments which are our He apart from his shoes shoes So you will also get to see shoes. Toys Mean Which are made but not in large lots Are made. the parts of vehicles bike parts or car parts whatever and Along with this there are confectionery items Are. Confectionery i.e. cakes, biscuits All these things like semolina ropes etc. They also come under batch costing Let's go. single after that If we use single or unit costing mention it. single or Unit costing. So if we talk about it So we can talk about mines. In. coal mines which are mines can talk about. we can say The work of oil drilling is done for We can talk about it. Then Steel We also see it in the work that is done These are used. and Joe Brick's Work is done, brick work is done. So Brick wax helps you in all these things. Single or unit poksting. Thank you so much Khushi. Just the last lecture 15 minute running time of Idol. Ok? So, this gives us a single or unit output. Do costing work. Right? And Is there a numerical reason I'm thinking of it? What if I get it done for you? Yes, the process I haven't mentioned costing yet. So just quickly, like the last 15 minutes I said. So let's look at process costing. Let's see. It's been more than 3 hours Lecture. Ok fine. Generally the system of one shot is that if We understand that if the lecture is longer than 3 hours If it goes up then it means now it is going in length Which we try even in one shot Keep it within 3 hours and after 4 hours So definitely stay inside. Company Law Mera 4 The hour has gone above this. So let's go to the process If we talk about costing then First in Process Costing I talked about Seema ICWA ICMA Had done. Right now I am talking about the border. The border is not an institution of our country and the border You will understand the full form of very well. Krishna like KGF in single costing I have seen the movie. In KGF movie, that gold Work in the mine. So the same gold Work continues in the mine. that is an Example. Ok? A very rough I have taken an example. Just remember that here Pay mining, drilling and other services We use it a lot. Limit It is an American institute. its full form Is. You will remember that you are certified Institute For Management Accountant. Certified Institute for Management Accountants. Ok? so do remember this Everyone. and the definition of the boundary That is the importance of process costing. He said that such a costing method which Sequence I hope you're writing with me. It's important. asked in the exam which is a sequence of Continuous means continuously Or those operations of repetitive operations Which are repeated again and again. So Repetitive Operations and Processes. Ok? Where When similar operations are performed repeatedly, What name have we given them? A It is called process costing. Ok? ok let's go And what else should I teach you? Another thing is normal loss and abnormal loss. How is the entry done? Contract I have told you the costing, Krishna. formula Sorry, who is this? This is someone else, Kanha. World, I don't even know where this is. appeared from. Let go About normal loss and abnormal loss Take a look at a general entry. Normal Loss Normal Loss Account in Scene Debit to the process in which that loss has occurred, then to Process account. Ok? And What Else? What Else? What Else? And this is what our let's say if abnormal gain were Say for example So in such a situation, the account of abnormal gain It gets debited. Abnormal Gain Account Debit To costing profit and loss. Two Costing Profit and Loss Account. These journal entries You will remember. Ok? Semi variable means marked that cost that will remain normal for some time and After that it will grow. Ok? What is this written? Ma'am, my mother likes you very much. I look forward to seeing you when we have class. Comes for it. Ok, good. Aunty, salute. Let us move ahead. And yes sir. I What are you going to tell me if I was talking about? Something Abnormal Gains We've Done Normal Gus We have done or Ankit had a question Ankit Look, suppose we have one room and one If the rent of the factory is Rs 10,000 then we Whether you have a production unit there or Suppose we have to pay rent for a warehouse. If we have Rs 10,000 then we want 10,000 even if you keep one stock item in it whether to give or whether we keep a lot of it Still we have to pay Rs 10,000. Now suppose he Our entire warehouse was filled. Now We have to take another warehouse. So some time Till then it remained only 10,000. when his entire Only when the usage capacity is utilized We had to take another one. Right? So 10,000 It was there for some time but so much production happened That now we had to take another warehouse. So Then it became 20,000. So for a while he The same will happen when too many units are added. Then it grows. So that is that. I I think it will be clear to you Ankit. good one more Something I didn't even mention. Big It was important. It's good. come to mind Marginal costing has been introduced. And some of you too No student told me, Ma'am Marginal costing is completely missed Our. So just take a quick look at marginal To costing. Come let's see. What does marginal costing mean, brother? Is? Marginal costing means that it takes per unit to produce Our efforts to produce additional units How much is the cost? Ok? to the same What do we say? Marginal Costing Let's say. That is, that is, for this I I will take the definition back. ICMA's Institute of Cost Accountants and Of management. What is written in it? Good Each little thing ICMA Institute of Cost and Management Accountants in London I am situated in. ICWA Institute of cost work accountant whose definition Someone just asked me about the new is situated in Delhi and the border i.e. Certified Certified Institute of Management Accountant in America It is situated. So there are three institutions. Memory You will keep it. So, what is marginal costing? What you need to know about the details here assurance of the Assertainment Off marginal cost which is marginal cost This means we have higher costs per unit. How much is it? to certainty of Marginal Cost and the Effect and The Effect On Profit of Changes in Volume Meaning There are changes in volume. Ok? So Profit of Changes in Volume And Type of output and Type of Output by differentiating between Differentiating between Fixed cost and variable cost. Meaning This definition that I have written here, this It is very important. I did this in the exam One The line of question has been raised. and so much After writing, he asked me to tell him. What is marginal costing? Krishna Tulsiyan ji, I will see if the contract Any costing question that appears in the exam If you have asked me if it is available right now then we Let's see. Ok? Yes sir. So brother, this Marginal costing was and is You should know some costing formulas. Needed As in marginal costing Contribution is important. So What is the contribution formula? Sales in Contribution Minus variable costs. Ok? and its Apart from Profit Volume Ratio is very important It is in it. So in the profit volume ratio The contribution that we took out from here We do the sales. Ok? like this Pay A question has been asked. A question on contribution I have asked. So let's take a quick look Because it is a question asked in the exam. Question What is he saying to you? The question is asking you That our sales were worth 1 lakh. Is. Ok? And the profit is ours It costs ₹10,000 and the variable cost is 70%. What do you want to tell me? First of all you What will be the PV ratio? These It is a question of exam, students. second thing I have asked you what the fixed cost will be? And It is said that if we make profit If we want to earn Rs 400 then how much sales will we have? Should it be? Look at the question very carefully Take it once because this question is in the exam It has arrived. Ok? So let's get started Are. First of all, we were given variable costs. Is 70%. Quickly answer this question Will do the solution. picking up a pen of a different color I am. So let's get started. We have been told that the variable cost is 70%. That means 70% of how much? 70% of the total What was our total sales? It was 1 lakh. Right? So 1 lakh 70% This means our variable cost becomes 70000 This is our variable cost. So PV I just told you the formula for the ratio. Contribution up sales and I also developed the formula for contribution. It is said that contribution equals sales Minus variable costs. That means our sales How much was it? It was 1 lakh. Variable cost we I just withdrew Rs 70,000. So that means Our Contribution has come, 300, okay How much has our contribution come? 30000 rights Ok PV Ratio So brother, you can calculate the PV ratio like this also. 30000 Upon sales means 1 lakh then our The contribution came to 30%, so we made PV The ratio was calculated here. We have The cost was taken out here. forward the question I am solving it here also. Others I am taking a yellow colored pen. What has the question asked us after that? These Tell me if we sell 400, we will sell 400 If we have to earn, how much should we earn? So in this It is simple. Who will look into it now? Derivation. Contribution if from sales We can calculate the contribution by subtracting the variable cost. Are earning. Listen very carefully. We subtract variable costs from sales. Earning contributions. So what if we Add up your fixed costs and profit If you give it, you will not get the contribution. talk It will be the same. We went straight here. here we They are moving in reverse. So just do that Us. In fixed cost we calculate profit Will add. And if we have fixed cost What will we get if we add the profit to it? It has been told? Fixed cost our 30,000 was and in this current question our How much was the profit? 10,000. Ok? So how much is our contribution? Went? Fixed Cost Our contribution of Rs 3,000 came back. Well, you know this, you can check it like this. Whether it is right or wrong. like one of No one to two formula to remove things It happens. Look, 300 came. here too How much did you get back? 30. Okay, 1 minute, 1 minute. Our profit is one second Our fixed cost was Rs 10,000, right? Our fixed cost is Rs 10,000 and profit We have been given Rs 20,000. Which question's part should I be getting done? We calculated the profit volume ratio. We have to find out the fixed cost. Ok? So If we have fixed cost here 300 - Had to do 20,000. Sorry sorry sorry. So if we contribute to the fixed cost Subtract profit from it. This is what I want to say Was being. So the contribution we made was Rs 300. We have taken out and how much profit do we have? 10,000 So what do we get here? 20,000 that will be your fixed cost. These Remember this formula of fixed cost. After that now the question is asked to us that if We If we sell it for Rs 400, how much profit will we make? Will you earn? Yes sir. Yes sir. Yes, Ankit It's done, it's done. Solve it. So look Bhai Sales Equ Fixed Cost Plus Profit / PVR Tax Will give. This is the formula, students. This You will remember it. So brother sales 400 from us It is said that how much will we get for Rs 400? We will increase it to 30%. So 20 40 60 60 Went. We will solve this into 100 / 30. So if we If we sell 400, what will be our profit? Will he come? 2 lakh will come. not fired Hey Krishna. Look carefully. Fixed Cost Equals to contribution minus profit. One more thing You write down the formula for break even point. Break even point. What happens though? Breakeven point simply means that How many sales should we make so that our The expenses should be covered. means expense We should not have to pay this money from our own pocket. Ok? And one last thing, margin of I will mention safety. margin of What is the formula for safety? So Margin of safety equals to Total sales and break-even If it happens at an even point then sales at breakeven Even Point OK At breakeven point, that is the margin of Safety ok fine Ok Which one Financial Took A student's question was regarding that Variances Standard Costing Standard Costing is one of our topics. Variances in standard costing Are. Just look at the formula for those variances. Take. The first is material cost variance. What is a formula? So material cost In variance we include standard material cost Minus actual material cost. Standard Costing tells us how we Let's send it. how do we decide Are. No, mark it correct. is the wrong answer yours. Watch the video in replay now Take. The class is about to end now. 3 It's been hours, brother. Look at the material Cost variance. Standard Costing Meaning We decide the standards. Ok? So here the standard which was decided and which There is actual material. Ok? After that Material Price Variance. What is material price variance? So The actual quantity that we have and the actual Quantity into Standard Price Upon They subtract the actual price. Everything would have been given to you in questions. Are. You just have to remove it. After that What is Material Usage Variance? So Standard in Material Usage Variance We multiply the price Standard quantity sorry standard By what do we multiply the price? Standard Quantity Minus Actual By quantity. So we should use this material Variance is obtained. And What Else? What Else? What Else? If we are okay with it. So now we'll have a The student had a doubt whether the contract If the question of costing is basic then it I will get it installed. However, in the exam If there is a question of contract costing, then no. It has not come yet. But the lecture is over. I have to look into one question before doing it. Yes, so this was the question of the student. I think this was Krishna's question. Just this The final is underway. This is the last thing that we are going to do Understand Because the question hasn't come up yet. Because of this So let me tell you a formula at least Let me tell you how we work In Contract Costing. so just give me a second because I'm searching if ever Have you got any questions? So a little bit You will remember Phula. and the same formula You will ask the question on this basis. Contract Costing's The Thing That We're Going To Talk. See contract costing See the percentage of completion. in question You will be told how much work is required. It has been completed. and how much transfer It is being done in PL. so transfer to PL. Right? You will see this. If up to Is 25%. Ok? So you don't have to pay anything I have to transfer it to. If from 25% to 50 then 1/3 of notional profit 1/3 of notional profit into Cash Received by Work Certified. Ok? And if it has gone up from 50% to 90%, it means So much work has been certified, so there 2/3 of this is notional profit in cash Received Upon Work Certified and if 90% If anything has gone up to 100% then such cases Estimated profit in the work Certified Upon Contract Price. Correct Is? Sir, we treated him with this only. With this we completed the students Took my cost accounting one shot And this one shot is completely ours. I taught on a chronological basis Because this subject was not mine. Because of this from I which came after seeing PYQ which has been in the last four been asked in five years and I have taught according to which the most I devoted most of my time to the questions. And most of all, you will get the topic in it. Clarity was given and as questions like Contract costing questions were few So it took me some time to find him. Now! It took two to three minutes because it didn't Was asked. Ok? Allocation Appropriation means this Allocate means we have to put the price up Appropriation of profits and appointment cost center pay If it is done then all the very best for your Exam and stay connected like this target With the semester and I'll see you tomorrow Almost 200 questions on Company Law We will put on 8:30 in the morning so me and my Team We Will Wait For You All And All The Best For exams, do take good care of it. Yourself Signing of Thank You