CA Inter Costing important topics for May 25 exams

Hey future CAs! Today I’m going to share something super valuable – the exact topics you need to master for getting that dream exemption in CA Inter Costing. During my preparation journey, I discovered these golden topics from Parag Sir’s classes that can help you gain exemption in CA Inter Costing:

1. Marginal Costing (16-20 marks potential!)

• Break-even analysis is your best friend here
• Master CVP Analysis – it’s an examiner’s favorite
• Decision-making questions are pure gold

2. Activity Based Costing (Modern & High-scoring)

Activity-Based Costing is a contemporary method emphasizing overheads’ allocation on the basis of activities as opposed to conventional approaches. This chapter is concerned with determining cost drivers, activity cost pools, and calculating true product costs. It usually comprises case-based questions to examine real-world understanding. Every year 1 question on ABC is a must.

3. Material & Labor Costing (Foundation Topics)

They form the core elements of calculating total production cost and are frequently assessed in the examination with numerous questions on their calculation, analysis, and control methods.

4. Cost Sheet (The Backbone)

The basis of costing, the Cost Sheet, plays a crucial role in learning about cost structures and classifications. The chapter assists in breaking down several elements of total cost, like prime cost, factory cost, and cost of production. Problems frequently involve the preparation of detailed cost sheets or solving problems regarding adjustments for overheads, opening and closing stocks, and abnormal costs.

5. Standard Costing 

In order to compare actual costs with standard costs, this chapter focuses on variance analysis. Variances are regularly examined, including material, labor, overhead, and sales. It is a useful skill to be able to interpret deviations and offer managerial insights.

It is a highly scored question & is frequently asked in exams.

6. Process Costing

For sectors like chemicals and textiles where production is constant, process costing is essential. Equivalent units, normal and abnormal process losses, inter-process profits, and joint costs are important ideas. You will learn how to effectively manage step-by-step computations in this chapter.

Study Tip for CA Inter Costing by Parag Gupta sir

• Focus on concept clarity.
• Practice as much as you can
• Do not forget to open ICAI study material
• Create a separate note book for formulas & read it daily till your exam
• During 1st revision, try to do as much questions by yourself and keep marking the different & difficult questions for 2nd revision practice.
• Take extra care in answer presentation
• Revise above topics at least 4 time before exams

Module	Chapters
Module 1	Chapter 1: Introduction to Cost and Management Accounting
	Chapter 2: Material Cost
	Chapter 3: Employee Cost
	Chapter 4: Overheads: Absorption Costing Method
	Chapter 5: Activity Based Costing
	Chapter 6: Cost Sheet
	Chapter 7: Cost Accounting System
Module 2	Chapter 8: Unit & Batch Costing
	Chapter 9: Job Costing and Contract Costing
	Chapter 10: Process & Operation Costing
	Chapter 11: Joint Products & By Products
	Chapter 12: Service Costing
	Chapter 13: Standard Costing
	Chapter 14: Marginal Costing
	Chapter 15: Budget and Budgetary Control

FAQ’s