COST AND MANAGEMENT ACCOUNTING

About this Course

This course focus on introductory and intermediate level of cost accounting and management accounting at operational level. It introduces to learners the basic concepts, terminologies, principles and methods of cost and management accounting starting from the introduction to cost elements to the basic costing methods in arriving at the cost of products produce using job, batch and process costing. Further, this course discusses how changes in costs (both variable and fixed) and sales volume affect a company's profit in Marginal and Absorption Costing and Cost Volume Profit Analysis. To assist learners to make a simple investment decision, a Capital Budgeting topic is discussed.

Course Learning Outcomes

There is no course learning outcomes (CLO) yet available in this course.

Course Syllabus

+ Course Syllabus

1) Elements of Cost and Cost Statement
1.1 Materials
1.2 Labour
1.3 Overhead
1.4 Cost Statements

2) Job and Batch Costing
2.1 Introduction to Job and Batch Costing
2.2 Determination of selling price for a job and batch unit
2.3 Job and batch statements

3) Process Costing
3.1 Introduction to Process Costing
3.2 Process costing when output are fully complete
3.3 Process costing with closing work in progress
3.4 Process costing with opening and closing work in progress (weighted average method)
3.5 Process costing with opening and closing work in progress (FIFO method)
3.5 Joint product and by product costing

4) Cost Behavior
4.1 Definition of cost behavior
4.2 Types of cost behavior
4.3 Important of cost behavior in cost management


5) Marginal and Absorption Costing
5.1 Definition Marginal Costing and Absorption Costing
5.2 Differences between Marginal costing and Absorption costing
5.3 Determination of stock valuation and income statement of marginal and absorption costing
5.4 Comprehensive illustration to prepare income statement based on marginal and absorption costing
5.5 Net profit analysis and statement of profit (loss) reconciliation.

6) Cost Volume Profit Analysis
6.1 Importance of Cost Volume Profit (CVP) analysis to the management
6.2 Assumptions and limitations of CVP analysis
6.3 Break-even point determination
6.4 Margin of safety
6.5 What if analysis
6.6 Break-even for multi product


7) Capital Budgeting: An Introduction
7.1 Introduction to capital budgeting
7.2 Types of capital budgeting techniques
7.3 Evaluation of Capital Budgeting projects

Frequently Asked Questions

Q1 : What is cost and management accounting?
A1 : Cost and management accounting is a form of accounting that aims to maximise profit by managing revenues and expenses. It provides data and reports mainly used by internal management for decision making.

Q2 : Is cost and management accounting difficult?
A2 : Cost and management accounting can be pretty easy if learners understand the fundamental concept relating to the topic. Students must try out a lot of problems to understand more. Tough it out, go to class, study, and you'll do fine.

Q3 : What is the difference between Cost Accounting and Management Accounting?
A3 : The key difference between Cost Accounting vs Management accounting is that Cost accounting is gathering and analyzing the information related to cost which provides only the quantitative information to the users of the reports whereas Management Accounting is the preparation of the financial as well as non-financial i.e., it involves both quantitative and qualitative information.Management accounting includes a lot of aspects of business such as decision making, planning, performance management, risk management, etc. Cost accounting, on the other hand, only revolves around cost computation, cost control, and overall cost reduction of business.