III B.

Tech I Semester
16BT5HS03: COSTING AND FINANCE MANAGEMENT FOR CIVIL ENGINEERS
Internal Marks External Marks Total Marks L T P C
30 70 100 3 1 - 3

PRE-REQUISITE: Nil

COURSE DESCRIPTION: Cost Planning, Contract Costing, Budgeting, Capital Budgeting,

Estimation of Cash Flows, Working Capital Management

Course objectives:
CEO1: To impart basic Principles and concepts of Costing and Finance Management.
CEO2: To develop skills related to-
Cost Analysis
Financial Management
Investment

Course Outcomes: On successful completion of this course the students will be able to:
CO1 : Acquire knowledge in
a) The basic concepts of finance
b) Basic principles of costing
c) Provides skills for effective utilization of costing concepts for quoting tenders
d) Framing budgets in relation to construction

CO2 : Develop skills in analyzing problems for

a) Quoting tenders in relation to civil engineering
b) Budgeting finance for construction industry
c) Enhancing ability in calculating working capital requirement
d) Improvising ability in estimating cash flows

CO3 : Develop effective communication in relation to costing and finance

CO4 : Design solutions for effective decisions in investment

Detailed Syllabus:
UNIIT I
Cost Planning: Cost predication and estimating in civil engineering projects Approximate
estimating Preliminary estimating Detailed estimating Cost plan inclusions

UNIT II
Contract Costing: Meaning Definition Simple Contract Accounts Comparative
Contract Accounts Contract Accounts with Balance Sheet Estimation of Contracts
(Simple problems)

UNIT III
Budgeting: Concept of Budget Classifications of Budgets Considerations in preparing
Budgets Concept of Budgetary Control Objectives and benefits of Budgetary Control
Essentials of a good Budgetary Control

UNIT IV
Capital Budgeting: Introduction Nature of Capital Budgeting Types of Capital
Budgeting Decisions Investment Evaluation Criteria NPV IRR PI (simple problems)
Estimation of Cash Flows: Introduction Cash Flows Incremental Cash Flows Capital
and Depreciation for tax purpose
 UNIT V

Working Capital Management: Introduction Concepts of Working Capital Operating

Cycle and Cash Conversions cycle Determination of Working Capital Sources of Working
Capital Finance Trade Credit Accrued expenses and differed income Bank Finance for
Working Capital

Text books:
1. S.P. Jain and K.L. Narang: Cost Accounting, Kalyani Publishers, Ludhiana, 12th
Edition, 2008, ISBN: 9788127244774

2. I.M. Pandey, Financial Management, Vikas Publishing House Pvt. Ltd., 11th Edition,
2015, ISBN- 9789325982291
Books for Reference:
1. The Institute of Company Secretaries of India, Cost and Management Study
Material, New Delhi.

2. James C Van Horne and John M Wachowicz, Fundamentals of Financial

Management, Prentice-Hall of India/Pearson, 13th Edition, 2009 ISBN-
9780273713630
 SREE VIDYANIKETHAN ENGINEERING COLLEGE
(Autonomous)
Sree Sainath Nagar, A. Rangampet-517 102

Department of Basic Sciences and Humanities

Lesson Plan

Name of the Subject: COSTING AND FINANCE MANAGEMENT FOR CIVIL ENGINEERS
Class & Semester: III B.Tech I Semester
Name(s) of the faculty Member(s):Dr. K. Saradhi
Book(s)
S. No. of
Topic followe Topics for self study
No. periods
d
UNIT I: COST PLANNING
1 T1
Cost and Cost predication 1
2 T1
Estimating in civil engineering projects 1 1
3 T1
Estimating in civil engineering projects 2 1
4 T1
Approximate estimating 1 1
5 T1
Tutorial 1 1
6 T1
Approximate estimating 2 1
7
Preliminary estimating 1
8 T1
Detailed estimating 1 1
9 T1
Detailed estimating 2 1
10 T1
Cost plan inclusions 1
11 Tutorial 2
1
Total periods required: 9+2
UNIT II: CONTRACT COSTING
12 Meaning, Definition, Simple Contract 1 T1
Accounts
13 Comparative Contract Accounts 1 T1

14 1 T1
Contract Accounts with Balance Sheet 1
15 1 T1
Contract Accounts with Balance Sheet 2
16 1 T1
Contract Accounts with Balance Sheet 3
17 1 T1
Tutorial 3
18
Estimation of Contracts 1 1 T1
19 Estimation of Contracts 2 1 T1

20 1 T1
Simple problems 1
21 Simple problems 2 1 T1
 Book(s)
S. No. of
Topic followe Topics for self study
No. periods
d

22 Tutorial 4
1 T1
Total periods required: 9+2
UNIT -III: BUDGETING
23 1 T1
Concept of Budget
24 1 T1
Classifications of Budgets
25 1 T1
Considerations in preparing Budgets 1
26 1 T1
Considerations in preparing Budgets 2
27 1 T1
Tutorial 5
28 1 T1
Concept of Budgetary Control
29
Objectives of Budgetary Control 1 T1
30 1 T1
Benefits of Budgetary Control
31 Essentials of a good Budgetary Control 1 1 T1

32 1 T1
Essentials of a good Budgetary Control 2
33 Tutorial 6
1 T1
Total periods required: 9+2
 UNIT IV: CAPITAL BUDGETING
34 1 T2
Introduction, Meaning and Definition
35 1 T2
Nature of Capital Budgeting
36 1 T2
Types of Capital Budgeting Decisions
37 1 T2
Investment Evaluation Criteria
38 1 T2
Net Present Value (NPV)
39 1 T2
Simple problems
40 Tutorial 7
1 T2
41 1 T2
Internal Rate Return (IRR)
42 1 T2
Simple problems
43 1 T2
Profit Index and Simple problems
44 Tutorial 8
1 T2
Total periods required: 9+2
UNIT V: WORKING CAPITAL MANAGEMENT
45 1 T2
Introduction, Meaning and Definition
46 1 T2
Concepts of Working Capital
47 1 T2
Operating Cycle
48 1 T2
Cash Conversions cycle
49 1 T2
Determination of Working Capital
50 1 T2
Sources of Working Capital Finance
51 Tutorial 9
1 T2
52 1 T2
Trade Credit
53 1 T2
Accrued expenses and differed income
54 1 T2
Bank Finance for Working Capital
55 Tutorial 10
1 T2
Total periods required: 9+2
Grand total periods required: 45 + 10 = 55

Text books:
3. S.P. Jain and K.L. Narang: Cost Accounting, Kalyani Publishers, Ludhiana, 12th
Edition, 2008, ISBN: 9788127244774

4. I.M. Pandey, Financial Management, Vikas Publishing House Pvt. Ltd., 11th Edition,
2015, ISBN- 9789325982291
Books for Reference:
3. The Institute of Company Secretaries of India, Cost and Management Study
Material, New Delhi.

4. James C Van Horne and John M Wachowicz, Fundamentals of Financial

Management, Prentice-Hall of India/Pearson, 13th Edition, 2009 ISBN-
9780273713630