Management and Cost Accounting
Subject Overview
Management and Cost Accounting builds decision-making skills around cost data — cost classification, materials/labour/overhead costing, job/contract/process costing, marginal and standard costing with cost-volume-profit analysis, budgetary control (including zero-base and performance budgeting), and financial statement/ratio analysis for management decisions. A 4-credit core theory paper.
Unit-wise Syllabus
4 units — click WhatsApp below to get the full notes for each
Unit 1: Cost accounting fundamentals
Objectives, scope, classification and elements of cost, installation of a costing system, materials control concepts and pricing methods, inventory management, labour cost classification, overhead collection and classification, cost sheet preparation, job/contract costing, process costing features and types
Unit 2: Marginal, standard costing and budgeting
Marginal costing meaning, advantages, limitations and applications, cost-volume-profit analysis, standard costing — material/labour/overhead variance computation, budgetary control advantages/limitations/preparation, zero-base budgeting, performance budgeting
Unit 3: Management accounting
Evolution, meaning, objectives and scope of management accounting, relationship with cost accounting, profit vs value maximisation conflicts, role of the management accountant in decision making
Unit 4: Financial statement analysis
Types, methods, objectives and limitations of financial statement analysis, ratio analysis — uses, classification, advantages and limitations, cash flow statement, fund flow statement, management reporting