Cost Accounting Standards Trick to Memorize by DR CMA VVV PHANI KUMAR

Summary

This engaging video script uses a humorous and imaginative story to teach and help memorize the 24 cost accounting standards. The narrative follows a whimsical journey where the protagonist, a teacher, interacts with alien friends, uses metaphors like 'six-colored mats' and 'employee utilities,' and ties each segment of the story to a specific cost standard. The story covers classifications, transport, utilities, repairs, financial charges, depreciation, and more, ensuring the standards are remembered through this creative storytelling approach. It's a fun and memorable way for CMA students and professionals to grasp complex accounting principles.

Takeaways

• 😀 The story cleverly links cost accounting standards with memorable narrative elements.
• 😀 Each of the 24 cost accounting standards is represented through a visual or event in the story.
• 😀 The script emphasizes the importance of understanding cost classification for efficient financial management.
• 😀 The story uses relatable scenarios, like transportation costs and employee expenses, to explain complex accounting concepts.
• 😀 The script helps simplify the concepts of manufacturing costs, direct expenses, and overheads by associating them with everyday situations.
• 😀 It demonstrates how to approach costs related to pollution control, maintenance, and administrative expenses.
• 😀 The narrative makes abstract concepts like depreciation, amortization, and financial charges easier to understand and remember.
• 😀 The breakdown of the costs involved in research and development is a crucial aspect, emphasizing the importance of innovation in accounting.
• 😀 Key cost components like selling and distribution, utilities, and packaging material are explained using tangible examples.
• 😀 The script reinforces the idea that cost accounting standards are interconnected and must be applied in tandem for accurate financial management.

Q & A

What is the purpose of the story in the script?

The story in the script is a mnemonic device designed to help learners remember the 24 CMA (Cost Management Accounting) standards by associating each standard with a specific part of the narrative.

How does the story help in remembering the CMA standards?

The story uses vivid and quirky imagery, linking each CMA standard to a part of the narrative. This helps learners retain the information by making it more memorable and engaging.

What does the term 'classification of cost' refer to in the story?

In the story, the 'classification of cost' is represented when the speaker classifies the board to caps, symbolizing the process of categorizing costs into different types in cost accounting.

What is the significance of the caps falling on the students' heads?

The caps falling on the students' heads represent the concept of 'capacity determination' in cost accounting, indicating the importance of knowing the capacity of production or operations.

What does the 'urgent transport' in the story symbolize?

The 'urgent transport' in the story symbolizes the cost of transportation when it becomes necessary to urgently move goods or materials, reflecting the relevance of transportation costs in cost management.

How is 'employee cost' represented in the script?

The 'employee cost' is represented by the employee cleaning utilities, which reflects the costs associated with the labor force involved in carrying out business operations.

What role do 'service center costs' play in the narrative?

The 'service center costs' are represented when the mechanics from the service center arrive to repair the mat. This highlights the cost associated with servicing equipment and maintaining operations.

What does 'pollution control costs' refer to in the context of the story?

The 'pollution control costs' in the story are represented by the pollution caused by the service center mechanics, which symbolizes the need for managing and mitigating environmental impacts and the costs associated with it.

What is the connection between 'research and development' and the mat in the story?

The 'research and development' is symbolized by the creation of the 'royal tech 20' product, linking the costs associated with developing new products or innovations to the concept of R&D in cost management.

How are 'manufacturing costs' represented in the script?

The 'manufacturing costs' are represented by the '22 lakhs manufacturing cost' of the royal tech 20, highlighting the significant expenses involved in producing goods or services.

What does 'revenue recognition' refer to in the context of the story?

In the story, 'revenue recognition' is represented by the final sale of the mat, symbolizing how revenue is recognized in cost accounting once the product is sold or service is provided.