Cost & Management Accounting
Cost accounting systems — cost sheet, material and labour costing, overheads, standard costing, marginal costing, process costing, and budgeting.
Your Success Path
Introduction to Cost Accounting
CA-I4 Ch.1Classification of costs — by nature, behaviour, function · Cost unit and cost centre · Elements of cost and prime cost
Cost Sheet and Unit Costing
CA-I4 Ch.2Cost sheet format and sequence · Stock adjustments for RM, WIP, FG · Treatment of scrap and by-products
Material Costing
CA-I4 Ch.3EOQ computation · Reorder level and safety stock · FIFO and WAC inventory valuation; ABC analysis
Labour Costing
CA-I4 Ch.4Time rate, piece rate, differential piece rate · Halsey and Rowan premium bonus plans · Idle time, overtime, labour turnover
Overheads — Collection and Absorption
CA-I4 Ch.5Allocation, apportionment, and absorption · OAR — machine hour rate vs labour hour rate · Under/over-absorption of overhead
Standard Costing and Variance Analysis
CA-I4 Ch.6Material price and usage variances · Labour rate and efficiency variances · Fixed overhead expenditure and volume variances
Marginal Costing and CVP Analysis
CA-I4 Ch.7Contribution, P/V ratio, BEP · Margin of safety · Marginal vs absorption costing profit; limiting factor analysis
Job Costing, Batch Costing and Contract Costing
CA-I4 Ch.8Job cost card preparation · Contract costing — work certified, retention, profit recognition · Foreseeable loss treatment; EBQ
Process Costing
CA-I4 Ch.9Normal and abnormal loss/gain · Equivalent units for closing WIP · Joint products and further processing decision
Budgets and Budgetary Control
CA-I4 Ch.10Production and purchase budgets · Cash budget — non-cash exclusions · Flexible budget and variance analysis