Variable costing

Variable costing

Bachelor of Business Studies (BBS) — Second Year

Subject: Cost and Management Accounting (MGT 212)

Unit 6: Accounting for Profit Planning

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

• Explain the scope and key elements of variable costing.
• Prepare the relevant cost records or calculations and interpret their use in managerial planning and control.

Curriculum Scope

• Concept, features, uses and importance
• Income-statement preparation
• Manufacturing overhead and other expenses
• Opening and closing stock
• Limitations

Detailed Microsyllabus

1. Variable costing

   1. Variable manufacturing costs assigned to products.
   2. Fixed manufacturing overhead treated as a period cost.
   3. Opening and closing inventory values.

2. Income statement

   1. Contribution format and relevant nonmanufacturing expenses.
   2. Prepare the prescribed profit statement.
   3. Explain managerial uses and reporting limitations.

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Curriculum reference: Tribhuvan University, Faculty of Management, revised four-year BBS curriculum, PDF pages 31-34.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit or component allocations apply at their stated level; no separate topic hours or marks are assigned here.