INTRODUCTION TO COST ACCOUNTING

About this Course

This course introduces the basic concepts, terminologies, principles and methods of cost accounting at operational level. This includes introduction of cost elements namely material, labour and overhead discussed. At the end of this course, students will be introduced to prepare job costing as a basic costing method in arriving at the cost of products produced.

Course Learning Outcomes

1) Explain the cost and management accounting system in business enterprise.
2) Analyse the production costs elements for business enterprise
3) Demonstrate interpersonal skills in task related to cost accounting

Course Syllabus

+ Course Syllabus

1) INTRODUCTION TO COST AND MANAGEMENT ACCOUNTING
Differences between Management and Financial Accounting
Cost concepts and classification

2) MATERIAL
Material control system
Perpetual inventory system
Continuous and Periodic inventory system
Method of pricing material issues

3) LABOUR
Labor cost and remuneration method (direct wages, bonus, overtime, and idle time)
Labour efficiency (including of learning curve effect)

4) OVERHEAD
Types of overhead
Determination of overhead cost
Predetermine overhead absorption rate
Treatment of under or over absorption of overhead
Introduction to Activity-Based Costing (ABC)

5) COSTING METHOD
Introduction of costing method
Job and Batch Costing
Service costing

Frequently Asked Questions

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