This course provides an overview of best practices related to inventory policies and procedures, inventory measurements, and cost accounting. Introduction to cost accounting mit opencourseware. A cost that exists, but is not explicitly stated is best described as cost. Cost and management accounting unit 1 free download as powerpoint presentation.
The cost accounting fundamentals course shows how to improve a business with constraint analysis, target costing, capital budgeting, price. Apply cost concepts and cost behaviors in the solving of management decision. Reconciliation of cost and financial accounting 25 unit 3. Managerial and cost accounting kenyatta university.
Fill in the boxes at the top of this page with your name, centre number and candidate number. The cost accounting fundamentals course shows how to improve a business with constraint analysis, target costing, capital budgeting, price setting, and cost of quality analysis. Unit 1 accounting and its functions objectives after studying this unit, you should be able to appreciate the. Cost accounting brief history objectives functions. Learning objectives after studying this topic, you should be able to, 1. Cost allocation to completed units and units in process 20. The scope of management accounting is broader than that of cost accounting.
Study notes on cost accounting your article library. It is the source of all other functions of cost accounting as we can calculate the cost of sales per unit for a particular product. How do these costs flow through inventory accounts. Cost should be related as closely as possible to their causes so that cost will be shared only among the cost units that pass thorough the. The accounting system and costing tuesday 12 may 2015 morning time. Cost reduction refers to the real and permanent reduction in the unit cost of goods manufactured or services rendered without affecting the use intended. Theoretical studies described cost accounting as the provision of such analysis and classification of expenditure as well as the total cost of any particular unit of production to be ascertained with reasonable degree of accuracy and at the same time to disclose exactly how such total cost is constituted w. Bcom 1st 2nd 3rd year books notes free pdf download. Which method of costing would be most appropriate for printing press. Basic concepts of cost accounting linkedin slideshare. Here we detail about the meaning, objectives, principles, objections against and evolution and development of cost accounting. Solution exhibit 1716a calculates the equivalent units of direct materials and conversion costs in the assembly department of nihon, inc. Cost accounting is the classifying, recording and appropriate allocation of expenditure for the determination of the costs of products or services, and for the presentation of suitably arranged data for purposes of control and guidance of management. Without manual horse power only machines cannot complete the process.
Introduction to cost accounting book pdf free download link book now. Familiarize yourself with the most important formulas, terms, and principles you need to know to apply cost accounting. Differentiate methods of schedule costs per unit of production, 4. All books are in clear copy here, and all files are secure so dont worry about it. Each excel link will download the file containing a spreadsheet for the problem and a template worksheet on which you can prepare the solution electronically. Understand the concept of financial accounting, cost accounting and management accounting. Cost accounting, cost accounting concepts, cost accounting notes. The preceding table includes links to basic and involved problems.
Identify the parties and the benefits accruing by use of cost accounting interactive lecture. Unit1 notes theory part cost accounting bba 102 ipu. An introduction module 6b elementary cost accounting 27 notes cost accounting. This provides an introduction to cost and management accounting. It consist its own principles, concepts and conventions which may vary from industry to industry. Entries are made from goods received reports, invoices, materials requisition slips. Select the costs according to their impact on business, 3.
Cost accounting is an accounting method that aims to capture a companys costs of production by assessing the input costs of each step of production as well as fixed costs, such as depreciation of. The branch of accounting that deals with calculation of cost per unit, management of cost per unit and control of cost per unit is called cost accounting 3. Access study documents, get answers to your study questions, and connect with real tutors for acct 351. Enumerate the various objectives of cost accounting. Familiarize yourself with the most important formulas, terms, and principles you need to know to apply. Dec 07, 2014 the branch of accounting that deals with calculation of cost per unit, management of cost per unit and control of cost per unit is called cost accounting 3. Introduction to cost accounting best practice tests for. Describe the cost concepts, cost behaviors, and cost accounting techniques that are applied to manufacturing and service businesses. To provide an in depth study of the cost accounting principles and techniques for identification, analysis and. Cost accounting helps in periods of trade depression and trade competition. Source booklet enclosed instructions use black ink or ballpoint pen. Learning outcomes on successful completion of this course, student should be able to. Introduction to cost accounting book pdf free download link or read online here in pdf. Cost accounting is an essential management tool that can uncover profitability improvements and provide support for key business decisions.
Fundamentals of cost accounting unit 1 introduction of cost accounting and cost sheet answer the following. In other words, it can be said that the management accounting can be considered as an extension of cost accounting. Identify the reasons for resistance to cost accounting 1. Op inc as changes occur in the output level, selling price, variable cost per unit, or the fixed costs of a product. Management accounting utilises the principles and practices of. Although cost sheets are prepared as per the requirements of the management, the information to be incorporated in a cost sheet should comprise of cost per unit and the total cost for the current period along with the cost per unit and the total cost of preceding period. The main purpose of cost accounting is analyzing the expenses with a view to knowing of cost of unit of output, of a job, of a process or of an operation. You also use cost accounting to determine a price for your product or service that will allow you to earn a reasonable profit. Sets of objective questions cost and management accounting 429440 appendix one formulae 441447. It includes methods for recognizing, classifying, allocating, aggregating and reporting such costs and comparing them with standard costs. Acc215 cost accounting administration outline course. Cost and management accounting unit 1 cost accounting. Cost accounting is defined as a systematic set of procedures for recording and reporting measurements of the cost of manufacturing goods and performing services in the aggregate and in detail. Unit costs, breakeven analysis, and costvolumeprofit.
Job order, process costing, and activitybased costing abc week 3. The information provided by cost accounting to the management is helpful for cost control and cost reduction through functions of planning, decision making and control. Theoretical studies described cost accounting as the provision of such analysis and classification of expenditure as well as the total cost of any particular unit of production to be ascertained with reasonable degree of accuracy and at the same time to disclose exactly how such total cost is. Cost accounting is a valuable tool you use to reduce and eliminate costs in a business. Module 1 accounting theory, recording and control systems. Familiarize yourself with the most important formulas, terms, and principles you need to. Data of financial statement is used for preparation of cost sheet. Cost object, cost centers and cost unit elements of cost. Cost computation helps the company reduce costs on projects and processes. Cost accounting is concerned with ascertainment and control of costs. Unit 1 introduction of cost accounting and cost sheet. In this video, you will learn basic objective of cost accounting, calculate selling price, methods to maximize profit, define accounting, the difference between cost and accounting and financial. General principles of cost accounting the following may be considered as the general principles of cost accounting. If variable costs are constant per unit and fixed costs remain unchanged, the.
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