CA Intermediate Cost and Management Accounting weightage 2024: The Institute of Chartered Accountants of India (ICAI) has issued updated and revised Section-wise Weightage for CA Intermediate Paper-4 Cost and Management Accounting applicable for September 2024 and subsequent exams till further changes are made.
Chapter wise marks distribution for CA Intermediate Sept 2024. Weightage of Marks for CA Intermediate Paper-4 Cost and Management Accounting. ICAI published skill-wise and section wise weightage for Cost and Management Accounting subject of CA Intermediate course.
The Board of Studies (BoS) of the Institute of Chartered Accountant of India (ICAI) has now assigned weightage of marks to various sections of Paper-4 subject. This facility would help students to plan their studies in a structured manner for the coming ICAI Cost and Management Accounting examinations.
Accordingly, each subject has been divided into various topics and topics have been grouped into sections and weightage range has been assigned to these sections. The question paper-4 would take into consideration the weightage range assigned to different sections.
Here is the weightage of marks for CA Intermediate subject Paper 4 i.e. Cost and Management Accounting. Following are the detail chapter wise and section wise weightage of marks assigned to Cost and Management Accounting paper. This analysis will be applicable for CA Intermediate course examination to be held in September 2024 onwards under New Scheme of Education and Training.
CA Intermediate Paper-4 Section wise Weightage
| Section No. | Weightage |
|---|---|
| Section-I: | 10%-15% |
| Section-II: | 35%-40% |
| Section-III: | 20%-25% |
| Section-IV: | 25%-30% |
CA Intermediate Paper-4 Chapter-wise Weightage
| Chapter Name | Weightage |
|---|---|
| Chapter 1: Introduction to Cost and Management Accounting | 10-15 Marks |
| Chapter 2: Material Cost | 10-15 Marks |
| Chapter 3: Employee Cost and Direct Expenses | 5-10 Marks |
| Chapter 4: Overheads – Absorption Costing Method | 10-15 Marks |
| Chapter 5: Activity Based Costing | 8-10 Marks |
| Chapter 6: Cost Sheet | 15-20 Marks |
| Chapter 7: Cost Accounting Systems | 5-10 Marks |
| Chapter 8: Unit & Batch Costing | 8-10 Marks |
| Chapter 9: Job Costing | 5-10 Marks |
| Chapter 10: Process & Operation Costing | 10-20 Marks |
| Chapter 11: Joint Products and By Products | 5-8 Marks |
| Chapter 12: Service Costing | 5-10 Marks |
| Chapter 13: Standard Costing | 8-10 Marks |
| Chapter 14: Marginal Costing | 10-15 Marks |
| Chapter 15: Budgets and Budgetary Control | 8-10 Marks |
CA Intermediate Weightage of Marks for Cost and Management Accounting
Section-I (Weightage 10%-15%) i.e. 10-15 Marks
- Overview of Cost and Management Accounting
(i) Introduction to Cost and Management Accounting
a) Objectives and Scope of Cost and Management Accounting,
b) The users of Cost and Management accounting information, Functions of management accounting.
c) Role of cost accounting department in an organisation and its relation with other departments.
d) Installation of Costing System
e) Relationship of Cost Accounting, Financial Accounting, Management Accounting and Financial Management.
f) Cost terms and Concepts
g) Cost Reduction and Cost Control
h) Elements of Costs
i) Cost behavior pattern, Separating the components of fixed, variable, semivariable and step costs.
j) Methods of Costing, Techniques of Costing.
k) Digital Costing.
(ii) Elements of Cost and preparation of Cost Sheets
a) Functional classification and ascertainment of cost
b) Preparation of Cost Sheets for Manufacturing sector and for Service sector
Section-II (Weightage 35%-40%) i.e. 35-40 Marks
- Ascertainment of Cost and Cost Accounting System
(i) Material Cost
a) Introduction to procurement procedures. Valuation of receipts, issue and closing stock of Material, Stock verification.
b) Material requirement analysis through digital costing including Government e-Marketplace (GeM). Introduction to Costing through Enterprise Resource Planning (ERP). Process of tender and quotation.
c) Inventory control-
- Techniques of fixing level of stocksminimum, maximum, re-order point, safety stock, determination of optimum stock level,
- Determination of Optimum Order quantity- Economic Order Quantity (EOQ),
- Techniques of Inventory control- ABC Analysis, Fast, Slow moving and Non moving (FSN), High, Medium, Low (HML), Vital, Essential, Desirable (VED), Just-in-Time (JIT)- Stock taking and perpetual inventory system, use of inventory control ratios, Digital Inventory control d) Treatment of Normal/Abnormal Losses w.r.t. waste, scrap, spoilage, defective, obsolescence.
(ii) Employee Cost
a) Introduction to Attendance and Payroll procedures
b) Elements of wages- Basic Overtime, Bonus, Holiday and leave wages, Allowances and perquisites.
c) Employee Cost Control
d) Employee Turnover- Methods of calculating employee turnover, causes of employee turnover, effects of employee turnover.
e) Remuneration systems and incentive schemes- Premium Bonus Method (Halsey Plan and Rowan Plan)
(iii) Direct Expenses Identification of direct expenses with the main product or service and its treatment.
(iv) Overheads
a) Functional analysis- Factory, Administration, Selling, Distribution, Research and Development.
b) Behavioral analysis- Fixed, Variable and Semi- Variable.
c) Allocation and Apportionment of overheads using Absorption Costing Method.
d) Factory Overheads- Primary and secondary distribution,
e) Administration Overheads- Method of allocation to cost centres or products,
f) Selling & Distribution Overheads- Analysis and absorption of the expenses in products/ customers, impact of marketing strategies, cost effectiveness of various methods of sales promotion.
g) Treatment of Research and development cost in cost accounting.
(v) Concepts of Activity Based Costing (ABC)
(vi) Integration of cost and financial data
a) Recording of financial data and its segregation.
b) Introduction to Nonintegrated and Integrated Accounting system.
c) Items included in cost accounts only but financial accounts and vice versa.
d) Reconciliation of profit as per Cost and Financial Accounts (under Non- Integrated Accounting System).
Section-III (Weightage 10%-25%) i.e. 20-25 Marks
- Methods of Costing
(i) Single Output/ Unit Costing
(ii) Job Costing
Job cost cards and databases, collecting direct costs of each job, attributing overheads to jobs, Application of job costing.
(iii) Batch Costing
Determination of optimum batch quantity, Ascertainment of cost for a batch, Preparation of batch cost sheet, Treatment of spoiled and defective work.
(iv) Process/ Operation Costing
a) Process cost recording, Process loss, Abnormal gains and losses, Equivalent units of production, Interprocess profit, Valuation of work in process.
b) Joint Products-
Apportionment of joint costs, Methods of apportioning joint cost over joint products,
c) By-Products- Methods of apportioning joint costs over by-products, treatment of By-product cost.
(v) Costing of Service Sectors Determination of Costs and Prices of services
Section-IV (Weightage 25%-30%) i.e. 25-30 Marks
- Cost Control and Analysis
(i) Standard Costing
a) Setting up of Standards, Types of Standards, Standard Costing as method of performance measurement.
b) Calculation and Reconciliation of Material Cost, Labour cost, Variable Overhead, Fixed Overhead
(ii) Marginal Costing
a) Basic concepts of marginal costing, Contribution margin, Break-even analysis, Break –even and profit volume charts, Contribution to sales ratio, Margin of Safety, Angle of Incidence, Cost-Volume-Profit Analysis (CVP),
b) Determination of Cost of a product/ service under marginal costing method, determination of cost of finished goods, work-in-progress,
c) Comparison of Marginal costing with absorption costing method- Reconciliation of profit under both the methods,
d) Short term decision making
- Make or buy decision
- Discontinuation decision
- Multiproduct breakeven analysis
- Limiting factor (key factor)
(iii) Budget and Budgetary Control
a) Meaning of Budget, Essentials of Budget, Budget Manual, Budget setting process, Preparation of Budget and monitoring procedures.
b) The use of budget in planning and control
c) Flexible budget, Preparation of Functional budget for operating and nonoperating functions, Cash budget, Master budget,
d) Introduction to Principal/ Key budget factor, Zero Based Budgeting (ZBB), Performance budget, Control ratios and Budget variances.
e) Budgets and motivation
f) Feedback and Feedforward controlling in budgeting.