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Cost and Works Accountants Act, 1959

20B. Fee, papers and syllabus for Foundation Course Examination

No candidate shall be admitted to Foundation Course Examination unless he applies in the prescribed form along with a fee of Rupees One Hundred and Twenty-five only or such fees as may be fixed by the Council from time to time and is otherwise eligible for the examination and then he shall be examined in the following subjects.



(One paper: 3 hours: 100 marks)

Section 1 : Business Fundamentals (50 marks)

Aim: To introduce the candidate to the world of the business and to acquaint him with the basic principles of Economic and Commercial practices.

Level of knowledge: Basic knowledge: basic knowledge

1.Type of business units: Sole proprietorship, partnership companies, Co-operatives, Hindu undivided family, joint Stock Companies, Public Utility Services and State Enterprises.

Company Organization and Management

2.Type of companies : their formation, incorporation and commencement of business, Memorandum of Association and Articles of Association, Prospectus, shares and debentures, Board of Directors and statutory and general meetings.

3.Business objectives, concept and rationale of social responsibility, Business and its environments, interface with legal, political, economic, social and cultural aspects.

Working systems of Stock Exchange

4.Dealers and brokers, transactions, economic significance, conditions of membership, stock exchange.

Business Communication and Report writing

(5) Preparation of telegraphic message, public notices and invitations, circulars, drafting of advertisements, filing of complaints, letter writing.

Section 2: Economics (50 marks)

1.Definition, scope and subject matter of Economics-a few fundamental concepts like utility, wealth, factors of production, demand and supply, equilibrium, land and the laws of diminishing returns.

2.Labour and population theories, definition of capital and growth of capital, steps in capital formation.

3.Market Forms-Value under perfect competition, value under imperfect competition.

4.National income-Gross National Product, Net National Product, measurement of National Income, difficulties and significance of National Income analysis, economic growth and fluctuations, consumption savings and investments.

Distribution-Income determination and equilibrium relating to rent, wages, interest and profit.

5.Money-Definition and functions of money. Quantity theory of money, inflation, effects of inflation of production and distribution of wealth, control of inflation, money supply, liquidity preference and managerial efficiency, rate of interest and investment. Banking-definition, functions and utility of banking, the principles of commercial banking, multiple credit creation, essentials of a sound banking system, Central Bank-Functions weapons of credit control and the money market.

6.International Trade: Basic features of import export.

7.National and International Financial Institutions like Industrial Finance Corporation of India (IFCI), Industrial Credit and Investment Corporation of India (ICICI), Industrial Development Bank of India (IDBI), Export Import Bank (EXIM), Asian Development Bank, International Monetary Fund (IMF), International Bank for Reconstruction and Development (World Bank):

8.The theory of employment-Types of unemployment, concepts of full employment and how it can be achieved.

9.Public Finance-Direct and Indirect Taxes, Canons of Taxation, effects of Taxation on production and distribution. Taxable capacity, deficit financing, Economic systems.


(One Paper: 3 hours: 100 marks)

Aim : To provide working knowledge on various concepts and functions of management and organization to the extent necessary to the work of a Cost and Management Accountant.

Level of Knowledge: Basic Knowledge.

Section 1: Management (50 marks)

1. Definition of management : Different schools of management process and functions of management, principles of management. Evolution of management thoughts, recent trends, management as a profession.

2. The process of management covering planning, organizing, staffing, directing, motivating, communicating and controlling.

3. Pattern of management :Broad policies and functions, structural pattern of the Board of Directors, delegation of power.

4. Public sector management, concept of public sector, social objectives.

Section 2: Organization (50 marks)

1. Nature of internal organization of business enterprise, formal and informal organization, principles of organization, (i) grouping of activities (a) typical pattern of grouping by-product, services, location, customers, processes, functions and time, (b) criteria for grouping activities-specialization, control, co-ordination, attention, economy, creating a network of relationship to determining the authority, delegation, chain of command, authority and responsibility, decentralization, span of control, (ii) level of authority-staff, kind of staff, nature of staff work, advisory services and control, line and staff relations, (iii) internal relations committees and their roles.

2. Concepts and features: Schools of organization theory –classical behavioral and systems. Recent trends and approaches, behavior in organization, nature, features, foundations and the role of behavioral science. Behavior process in organization.

Paper 3: Basic Mathematics and Statistics (100 marks)

Aim: To ensure a basic understanding of quantitative tools and their elementary application to business problems.

Level of knowledge: Basic knowledge

Arithmetic : Averages, mixtures, computation of interest, discounting of bills, percentages, ratios and proportions.


(a) Number systems-real, imaginary, rational and irrational.

(b) Elementary knowledge of sets and the operations on them. Simple applications and solution by the use of Venn diagram. Truth table and its applications to statements.

(c) Indices and surds, variation, Logarithms, permutations and combinations, compound interest.

(d) Solution of system of linear simultaneous equations (3 variables only). Quadratic equations, solution of linear inequalities (by graphical method only).

Menstruation : Area and perimeter of triangles, circles, parallelogram, regular polygon, volume and surface of cube, prism, cylinder, pyramid, core, fustrums and spheres (including zone and segments).

Plain Co-ordinate Geometry (Rectangular Cartesian co-ordinates only). Length of a line segment, section ratio, gradient of a line, equations of straight line, circles, parabolism. Ellipse and hyperbola (standard forms only).

Elementary statistics: Graphical presentation of statistical data, frequency distribution, measures of central tendency (mean, median, mode), measures of dispersion (range, mean, deviation, standard variance), measures of skewness and kurtosis.

Paper 4: Commercial laws (100 marks)

Aim: To ensure a grasp of fundamental business laws required for the functioning of a cost and management accountant.

Level of knowledge: Basic knowledge

1.The Contract Act, 1872 (9 of 1872)-nature of contract, contractual terms, remedies for breach and elements of contracts.

2.The Partnership Act, 1932 (9 of 1932)-General concepts.

3.The Sale of Goods Act, 1930 (3 of 1930)-General concepts.

4.The Negotiable Instruments Act, 1881 (26 of 1881)- General concepts.

Cost and Works Accountants Act, 1959 Back

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