BBA 202 Cost and Management Accounting Notes are a 58-page printed book from Unnati Educations covering all 4 units of this GGSIPU BBA Semester 4 paper, with 23 solved numericals, 4 case studies and 55 exam-style questions. They follow the NEP-based BBA scheme of examination in force from academic session 2024-25.
Written by Prateek Talwar, ACS · Reviewed by Sheetal Kirola, BBA, B.Ed, Academic Head · Checked against the BBA Scheme and Syllabus (NEP), w.e.f. 2024-25 · Updated 14 October 2026 · Editorial policy
Scheme: NEP-based BBA scheme, w.e.f. 2024-25 | Applies to: batches from 2024-25 onwards | Verified against: BBAwef2024_25_200125.pdf
BBA 202 Cost and Management Accounting at a glance: GGSIPU BBA Sem 4 credits, units and exam pattern
| Code and title | BBA 202 Cost & Management Accounting |
|---|---|
| Course and semester | BBA, Fourth Semester |
| Category and credits | Discipline Specific Course / Major · 4 credits · L-4, T-0 |
| Marks | 100: 40 internal + 60 end-term |
| Applies to | Scheme w.e.f. academic session 2024-2025 |
| End-term pattern | Not printed in the official PDF (60 marks) |
| Exam duration | 3 hours |
| Units | 4 units of 15 hours each, with case studies |
| Paired lab | None (theory paper) |
BBA 202 and BBA 204 Business Analytics are the fixed Major papers among the GGSIPU BBA Semester 4 papers.
BBA 202 Cost and Management Accounting Notes unit-wise: 23 solved numericals and 55 exam questions across 4 units
These GGSIPU BBA Sem 4 Cost and Management Accounting notes close every unit with a case study, a question list and a revision table. Notes for the other papers sit under GGSIPU BBA notes, and the sample PDF at the top shows the layout.
BBA 202 Unit 1: Introduction to Cost Accounting
Classification of cost and the cost sheet, then material control: bin card versus stores ledger, perpetual inventory, FIFO, LIFO and weighted average, EOQ, ABC analysis and stock levels. Labour costing ends with the Halsey, Rowan and Taylor plans.
Pages 5 to 21 · 6 solved numericals · 14 exam questions.
| Order size | Ordering (₹) | Carrying (₹) | Total (₹) |
|---|---|---|---|
| 500 | 2,000 | 500 | 2,500 |
| 1,000 (EOQ) | 1,000 | 1,000 | 2,000 |
| 2,000 | 500 | 2,000 | 2,500 |
Quick look: EOQ check for 20,000 units a year, ₹50 per order, ₹2 carrying cost (from page 15)
- Order size
- 500
- Ordering (₹)
- 2,000
- Carrying (₹)
- 500
- Total (₹)
- 2,500
- Order size
- 1,000 (EOQ)
- Ordering (₹)
- 1,000
- Carrying (₹)
- 1,000
- Total (₹)
- 2,000
- Order size
- 2,000
- Ordering (₹)
- 500
- Carrying (₹)
- 2,000
- Total (₹)
- 2,500
BBA 202 Unit 2: Method of Costing
Titled "Methods of Costing" in the notes. It matches each method to its industry: unit costing for tenders, job and batch costing with economic batch quantity, contract costing with escalation and cost-plus contracts, service costing with passenger-km and tonne-km, and process costing with normal and abnormal loss.
Pages 22 to 34 · 5 solved numericals · 14 exam questions.
Quick look: cost per unit in Process A (from page 31)
- 1,000 units at ₹20 + labour ₹5,000 + overheads ₹3,400 = ₹28,400.
- Normal loss 10% = 100 units; scrap at ₹5 = ₹500.
- Cost per unit = (28,400 − 500) ÷ 900 = ₹31.
- Output 850 against a normal 900, so abnormal loss = 50 × ₹31 = ₹1,550.
BBA 202 Unit 3: Budgetary Control and Variances
Budget committee and key factor, functional, cash and flexible budgets, zero based and performance budgeting. The second half covers standard costing, material, labour and overhead variances, the balanced scorecard and responsibility centres with ROI and residual income.
Pages 35 to 47 · 6 solved numericals · 14 exam questions.
| Variance | Working | Result |
|---|---|---|
| Price | 2,100 × (10 − 9.50) | ₹1,050 (F) |
| Usage | 10 × (2,000 − 2,100) | ₹1,000 (A) |
| Cost | 20,000 − 19,950 | ₹50 (F) |
Quick look: material variances, standard 2 kg at ₹10 per unit, actual 2,100 kg at ₹9.50 for 1,000 units (from page 42)
- Variance
- Price
- Working
- 2,100 × (10 − 9.50)
- Result
- ₹1,050 (F)
- Variance
- Usage
- Working
- 10 × (2,000 − 2,100)
- Result
- ₹1,000 (A)
- Variance
- Cost
- Working
- 20,000 − 19,950
- Result
- ₹50 (F)
BBA 202 Unit 4: Costing and Profit Planning
Marginal versus absorption costing with a profit reconciliation, then contribution-based decisions: key factor, make or buy, special order and shut-down point. CVP analysis, P/V ratio, break-even by formula and chart, angle of incidence and margin of safety close the unit.
Pages 48 to 58 · 6 solved numericals · 13 exam questions.
| Measure | Result |
|---|---|
| P/V ratio | 40% |
| Break-even point | 8,000 units (₹4,00,000) |
| Margin of safety | ₹2,00,000 |
| Profit | ₹80,000 |
Quick look: break-even at ₹50 price, ₹30 variable cost, ₹1,60,000 fixed cost, 12,000 units sold (from page 54)
- Measure
- P/V ratio
- Result
- 40%
- Measure
- Break-even point
- Result
- 8,000 units (₹4,00,000)
- Measure
- Margin of safety
- Result
- ₹2,00,000
- Measure
- Profit
- Result
- ₹80,000
BBA 202 exam corner: 32 short-answer and 23 long-answer questions by unit
Each unit ends with an "Important Exam Questions" list: exam-style questions without year tags.
| Unit | Short (2–5 Marks) | Long (10–15 Marks) | Numericals |
|---|---|---|---|
| 1 Cost accounting, material, labour | 8 | 6 | 6 |
| 2 Job, contract, service, process | 8 | 6 | 5 |
| 3 Budgets and variances | 8 | 6 | 6 |
| 4 Marginal costing and CVP | 8 | 5 | 6 |
BBA 202 exam questions and solved numericals per unit
- Unit
- 1 Cost accounting, material, labour
- Short (2–5 Marks)
- 8
- Long (10–15 Marks)
- 6
- Numericals
- 6
- Unit
- 2 Job, contract, service, process
- Short (2–5 Marks)
- 8
- Long (10–15 Marks)
- 6
- Numericals
- 5
- Unit
- 3 Budgets and variances
- Short (2–5 Marks)
- 8
- Long (10–15 Marks)
- 6
- Numericals
- 6
- Unit
- 4 Marginal costing and CVP
- Short (2–5 Marks)
- 8
- Long (10–15 Marks)
- 5
- Numericals
- 6
The BBA 202 notes list 32 short-answer and 23 long-answer exam questions across 4 units, plus 23 solved numericals.
- Distinguish between bin card and stores ledger. Kept by storekeeper versus cost department; quantity only versus quantity and value.
- Give cost units for any five service industries. Tonne-km, passenger-km, patient-day, room-day, kilowatt-hour.
- What is zero based budgeting? Every activity justified from zero; decision packages ranked by cost and benefit.
- What is angle of incidence? The angle at break-even between sales and total cost lines; a large angle means a high rate of profit.
More practice sits in the BBA 202 important questions.
Work certified, retention money and notional profit in contract costing: excerpt from page 26 of the BBA 202 notes
Excerpt from page 26
Features of contract costing
Contract costing is a form of specific order costing. It is used where the work is large, runs for a long time (often more than a year) and is carried out at the customer's site: buildings, roads, bridges, dams and ships. Each contract is a cost unit with its own contract number and its own Contract Account.
Because the work happens at the site and not in a factory, most expenses become direct, even site electricity, telephone and the watchman's wages. Plant is either charged at depreciation or debited in full and credited at its written-down value at the end of the year. The contractor is paid in instalments on the basis of work certified by the architect or engineer, and profit on an unfinished contract is taken only in part, depending on the stage of completion.
Important terms
- Contract price: the total amount the contractee agrees to pay for the whole work.
- Work certified: the value of work completed and certified by the architect or engineer, taken at contract price.
- Work uncertified: work completed but not yet certified, valued at cost.
- Retention money: the part of work certified that the contractee holds back as security against defects, for example 20%.
- Cash received: work certified minus retention money.
- Notional profit: work certified plus work uncertified, minus the cost of work done to date.
- Work-in-progress: work certified plus work uncertified, minus the profit kept in reserve; it is shown in the balance sheet.
- Sub-contract: part of the work given to another contractor; its cost is a direct expense.
How the cost of a contract is found
Cost is found by direct allocation. Materials sent to site, wages paid at site, direct expenses, sub-contract cost and depreciation of plant are debited to the Contract Account, and only a small share of head-office overheads is apportioned. Materials returned, materials lying at site at the year end and plant at site at written-down value are credited.
Two ways to recognise profit
Under the completed contract method, profit is recognised only when the whole contract is finished; it suits short contracts or work with a very uncertain outcome. Under the percentage of completion method, profit is recognised year by year in proportion to the work completed, which the notes link to AS 7 and Ind AS 115 and describe as the normal method for long-term contracts.
Do the BBA 202 notes cover the full GGSIPU syllabus?
Yes for the unit content: every topic in the four official units of BBA-202 has its own section, and each unit adds the case study the syllabus asks for. One gap: course outcome CO2 names overhead functional analysis, which the notes cover only through the cost sheet and overhead variances.
| Official unit | Official topics | Where in the notes | Status |
|---|---|---|---|
| I: Introduction to Cost Accounting | Classification of cost, cost sheet, material costing, perpetual inventory, valuation, EOQ, ABC, stock levels, labour costing | Sections 1 to 10, pages 6 to 19 | Covered |
| 2: Method of Costing | Contract costing, escalation clause, cost-plus contract, service costing, unit, job, batch and process costing, operating cost | Sections 1 to 7, pages 23 to 32 | Covered |
| 3: Budgetary Control and Variances | Budgetary control, performance, fixed, flexible and zero based budgets, standard costing, variances, balanced scorecard, responsibility accounting | Sections 1 to 9, pages 36 to 45 | Covered |
| 4: Costing and Profit Planning | Variable, absorption and marginal costing, decisions, CVP, P/V ratio, break-even, angle of incidence, margin of safety | Sections 1 to 8, pages 49 to 56 | Covered |
Official BBA-202 units compared with the notes
- Official unit
- I: Introduction to Cost Accounting
- Official topics
- Classification of cost, cost sheet, material costing, perpetual inventory, valuation, EOQ, ABC, stock levels, labour costing
- Where in the notes
- Sections 1 to 10, pages 6 to 19
- Status
- Covered
- Official unit
- 2: Method of Costing
- Official topics
- Contract costing, escalation clause, cost-plus contract, service costing, unit, job, batch and process costing, operating cost
- Where in the notes
- Sections 1 to 7, pages 23 to 32
- Status
- Covered
- Official unit
- 3: Budgetary Control and Variances
- Official topics
- Budgetary control, performance, fixed, flexible and zero based budgets, standard costing, variances, balanced scorecard, responsibility accounting
- Where in the notes
- Sections 1 to 9, pages 36 to 45
- Status
- Covered
- Official unit
- 4: Costing and Profit Planning
- Official topics
- Variable, absorption and marginal costing, decisions, CVP, P/V ratio, break-even, angle of incidence, margin of safety
- Where in the notes
- Sections 1 to 8, pages 49 to 56
- Status
- Covered
Official source: BBA Scheme and Syllabus (NEP), w.e.f. 2024-25, page 78. Pass and re-appear rules sit in Ordinance 11 on examinations.
These BBA 202 Cost and Management Accounting IPU notes were checked topic by topic against page 78, as every course in GGSIPU notes is mapped to its official PDF.
Who writes and checks the BBA 202 Cost Accounting notes?
- Prateek Talwar, author. Founder, Unnati Educations; Associate Company Secretary (ACS), ICSI, since 2019; B.Com, University of Delhi. Profile
- Sheetal Kirola, subject reviewer. Academic Head. She holds a BBA and a B.Ed., both from the School of Open Learning, University of Delhi, specialises in BBA and B.Ed. subjects and has 6 years of experience.
The 2026-27 edition maps the 2024-25 NEP scheme in 58 pages with 17 formula boxes, updated 14 October 2026, under our editorial policy.
The same team prepares GGSIPU important questions for every course.
BBA 202 and the GGSIPU BBA Sem 4 papers it connects to
BBA 202 has no lab, so the full paper list is on the GGSIPU BBA syllabus page.
Alongside it sit BBA 204 Business Analytics, BBA 206 MOOC or BBA 218 Sustainability Practices, two electives from BBA 208 Talent Management, BBA 210 Sales and Channel Management, BBA 212 Income Tax Law & Practice, BBA 214 International Business Environment and Strategy and BBA 216 Opportunity & Feasibility Analysis, and a course-basket paper.
- Unit 1 builds on BBA 105 Financial Accounting & Analysis; page 7 shows where they split.
- Unit 4's break-even and make-or-buy tools return in BBA 216 viability work.
- Unit 3's budgets lead into BBA 301 Financial Management in Semester 5.
How to write BBA 202 answers: cost sheets, account formats and variance working notes
BBA 202 mixes theory with numericals, and the notes present each kind in a fixed way. For a numerical, write the formula first, then put in the values, so every step of working is visible to the examiner, and state any assumption, such as which average stock formula you used. Add a working-notes box under any statement, as the notes do under the cost sheet and the contract account.
Habits taken from the notes' exam tips and key points:
- Convert profit on sales into profit on cost before adding it: 20% on sales is 25% on cost, and 25% on sales is 33⅓% on cost.
- Keep financial items out of a cost sheet: interest on debentures, dividend, income tax, donations, loss on sale of assets.
- Never put depreciation in a cash budget; enter credit sales and purchases in the month the cash actually moves.
- Mark every variance (F) or (A) and end with a check line: price variance plus usage variance equals material cost variance.
- After a break-even sum, say what the margin of safety means: a 33% margin means sales can fall by a third before a loss.
Worked example: profit on sales (page 10)
Cost of sales is ₹1,60,000 and profit is 20% on sales. If sales are 100, cost is 80 and profit is 20, so profit = 1,60,000 × 20 ÷ 80 = ₹40,000 and sales = ₹2,00,000. Taking 20% of cost instead gives ₹32,000, the usual slip.
For theory answers, the comparison tables in the notes (fixed versus flexible budget, job versus process costing) can go straight into an answer as a 5 to 7 row table, followed by two lines on which one the question situation calls for. Practise both formats on GGSIPU BBA important questions.
BBA 202 Cost Accounting notes FAQs
How do I get the full BBA 202 notes?
Message Unnati Educations on WhatsApp at 9899436384 using the button on this page. The full BBA 202 notes are sold only as a printed book of 58 pages covering all four units, with 23 solved numericals, 4 case studies and 55 exam questions. Delivery takes up to 5 to 7 days, depending on your location; price and payment are shared on WhatsApp.
Are the BBA 202 Cost and Management Accounting notes available as a PDF?
No. The full BBA 202 Cost and Management Accounting notes come only in printed book form and are not sold as a PDF. The only PDF on this page is a short watermarked sample with the cover, index and one page from each unit, so you can see the tables and layout before ordering the book on WhatsApp.
What is the passing mark for BBA 202 Cost and Management Accounting?
BBA 202 is marked out of 100: 40 internal and 60 end-term. The BBA scheme of examination (w.e.f. 2024-25) states this 40/60 split for every theory paper but does not print a pass percentage. For minimum marks in the end-term exam and re-appear rules, see GGSIPU Ordinance 11 on ipu.ac.in or ask your institute's examination office.
How are the 40 internal marks of BBA 202 given?
The BBA scheme splits the 40 internal marks of BBA 202 into two parts. A compulsory written class test, held as per the university's academic calendar, carries 15 marks. The other 25 marks come from at least two activities chosen by the faculty, such as individual assignments, a presentation, viva-voce, group discussion or class participation, recorded by the faculty.
Do the BBA 202 notes match the 2024-25 NEP scheme?
Yes. The BBA 202 notes follow the NEP-based BBA scheme and syllabus in force from academic session 2024-25, where Cost and Management Accounting is a 4-credit Major paper in Semester 4. All four official unit headings and their listed topics are covered. If your batch follows an older scheme, check your paper code and units with your institute.
Is there a lab or practical paper with BBA 202?
No. BBA 202 is a theory paper with L-4, T-0 and 4 credits, so there is no paired lab or practical file. The practice happens inside the paper: the notes carry 23 solved numericals, such as cost sheets, contract and process accounts, cash and flexible budgets, variances and break-even sums, each laid out with working notes.
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Unnati Educations is an independent education provider based in Vikaspuri, Delhi. We are not affiliated with, authorised by, or endorsed by Guru Gobind Singh Indraprastha University (GGSIPU). 'GGSIPU' and 'IPU' are used only to describe the syllabus our notes follow. For official information, visit ipu.ac.in.
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