Cost and Management Accounting syllabus

Cost and Management Accounting

• 1 Conceptual Foundation (2 LHs)

  • Cost and management accounting: aims, advantages and limits
  • Financial, cost and management accounting compared
• 2 Cost Concept and Cost Classification (4 LHs)

  • Cost versus expense; cost classification
  • Functional, behavior, control, decision and time bases
  • Two-point and least-squares cost segregation
  • Cost estimation
• 3 Accounting for Materials (4 LHs)

  • Inventory holding and control
  • EOQ and discount considerations
  • Reorder, maximum, minimum, average, danger and safety levels
  • Perpetual inventory, ABC and just-in-time
• 4 Accounting for Labour Cost (3 LHs)

  • Labour cost control and remuneration systems
  • Time and piece wage systems
  • Halsey, Rowan, Taylor and Gantt premium plans
• 5 Accounting for Overhead Cost (5 LHs)

  • Overhead meaning and classification
  • Apportionment and absorption
  • Volume, direct-labour-hour and machine-hour bases
• 6 Costing in Service Sectors (6 LHs)

  • Service costing concept, scope and limitations
  • Transport, hospital, hotel and restaurant cost sheets
• 7 Accounting for Profit Planning (8 LHs)

  • Variable and absorption costing income statements
  • Fixed-overhead adjustment and profit reconciliation
  • CVP analysis, contribution margin and break-even
  • Multi-product decisions, margin of safety and target profit
• 8 Cost Accounting for Planning and Control (12 LHs)

  • Standard costing and budgets
  • Material, labour and overhead variances
  • Sales, production, materials, labour and overhead budgets
  • Cost-of-goods and selling/administrative budgets
  • Fixed versus flexible budgeting and activity-level control
• 9 Short term Decision Making (4 LHs)

  • Relevant, avoidable and opportunity costs
  • Drop/continue, special-order and make/buy decisions