Costing subject is very important syllabus in professional courses and other commerce, management related courses, in all these courses having at least two stages of costing syllabus. It’s seems a difficult subject, if we study the subject in right direction then we will get a good marks. Here my self enlisted some points for scoring in Costing.
- Conceptual Understanding: Even though costing is a problem related paper, the basic conceptual understanding is very must, Each Costing problem is each type but the basic concepts are same. Example in Standard costing calculation and type of variances will be based on type of given problem, but the concept for calculating the variance is same. So we need to understand the each costing concept. It will help not only for costing subject but all subjects.
- Industry knowledge: Each Industry having different type of costing technique, methods and also the basic information related to costing is different, some industry follow the Process costing, some Batch & Job Costing. So we need to develop the knowledge of the industries which are covered under Costing records and rules.
- Understanding the Technique: As I mentioned above different Industry having the different methods like, Process costing, Job costing, Batch costing, Service costing, Unit costing, Activity based costing etc. every costing methods having different techniques, so we need to under stand the different technique for different costing.
- Understanding the Cost structure: Each type of Industry, organisation having different cost structure, Production industry having Material, labour, Overheads and Service industry may or may not have Materials and also type of labour will be differ like Direct labour, Indirect labour, some time hourly basis wages and some time unit basis wages, so we need to under stand the cost structure of the Industries
- Tabulation of the process: While attending the costing problems, first we need to tabulate the process cycle from the given information, without understating the Concept, technique, industry, we unable to do tabulation, suppose the problem related to Cement industry, we need to have knowledge about the total process of cement industry then only we can tabulate the process.
- Practical understanding of Formulas: Costing subject having several formulas based on the Costing techniques. We need understand the formulas in practical and the purpose of the usage, the chapters like standard costing, if we understand the formula in practical, no need to remember the formulas in mind.
- Costing objective: Before arrive the costing; we need to understand the object and purpose of the costing required or what is asked in the given problem. Whether it is for fix the product price or for management decision making like, comparison, using different type materials, labour methods. So objective of the costing is very important otherwise the costing will be meaningless
- Practicing number of problems: As I told above, costing techniques, methods, process, structure are different from industry to industry, for getting good knowledge we need to workout maximum number of problem oriented question in different type, it will give you the good knowledge in costing and good speed during exams
Costing is the subject which is different from other subjects and also very interesting, because, each costing problem is each type. But if we study in a systematic manner, it will be a high scoring subject and I hope the above mentioned points are useful to you and help to get good marks in costing