Costing :
Cost classification : a) Prime costs and overheads, (b) Direct or variable or marginal costs and fixed costs—imputed, opportunity and sunk cost concepts—Perpetual inventory system for materials—Booking of labour time.
Full cost methods or Absorption costing : Job costing, Process costing and contract costing—Allocation and apportionment of overhead costs through various bases.
Costing for Decision making : Marginal costs—Contribution—Limiting factor—Break-even analysis—Profit-volume ratio—differential costing—Decisions like “make or by”, accept or reject an offer, shut down or keep running a department or branch, etc.
Costing for Control : Standard costing—Budgetary control—Their comparison—Responsibility accounting or reporting—Variance analysis of materials, labour and overheads.