Accounting - Basic Costing

Learn basic costing principles to improve your accounting knowledge, earn promotion or enhance a college course
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108 students enrolled
Instructed by Steve Currie Business / Finance
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  • Lectures 37
  • Length 3.5 hours
  • Skill Level Beginner Level
  • Languages English
  • Includes Lifetime access
    30 day money back guarantee!
    Available on iOS and Android
    Certificate of Completion
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About This Course

Published 8/2015 English

Course Description

This self-contained course covers the basics of costing for anybody looking to improve their knowledge or career prospects.

It is also suitable for AAT Level 2 students sitting the latest (AQ 2013 specification) Association of Accounting Technicians (AAT) Basic Accounting (BCST) module and is presented by tutors who have taught hundreds of AAT students with a 100% success rate – no student of ours has ever failed this module!

The lectures are presented in a relaxed, friendly, simple Keynote presentation - each section covers a part of the course specification and is backed up with a question bank for learning reinforcement.

In about 4 hours and with question practice you will be in a position to sit the AAT assessment with confidence.

The tutor will also be available during office hours to answer your queries/give advice.

In addition you receive:

  • Full, free lifetime access
  • All future lecture updates for free
  • Unconditional Udemy 30 day money-back guarantee – our commitment to your success!

What are the requirements?

  • Computer
  • Internet connection
  • Basic math
  • Calculator, pen and notepad

What am I going to get from this course?

  • Section exercises with solutions
  • Full coverage of the AAT BCST specification
  • How to classify costs
  • How to group costs
  • An understanding of coding costs for analysis
  • An introduction to inventory
  • How to value issues and closing inventory
  • How to construct a Manufacturing Account
  • How to use the various methods of calculating pay
  • How to classify and code labour costs
  • How labour costs behave and sources of information
  • An understanding of budgeting
  • How to calculate and analyse variances using spreadsheets

Who is the target audience?

  • This course is for anybody wishing to gain knowledge of basic costing principles for general learning or as part of a career path
  • Also suitable for AAT Level 2 students wishing to sit the AAT Basic Costing module as a stand-alone course or as an enhancement to a college/distance learning course
  • This course is introductory by nature

What you get with this course?

Not for you? No problem.
30 day money back guarantee.

Forever yours.
Lifetime access.

Learn on the go.
Desktop, iOS and Android.

Get rewarded.
Certificate of completion.


Section 1: Course Introduction

An introduction to the course and the instructor


A look at the format of the AAT Accounting Qualification


How the AAT assesses students at the different levels of the qualification


The options available to suit you to get the most out of this course

How to Study this Course
Section 2: Accounting & Cost Accounting

A definition of accountancy and consideration of the types of users


In this lecture we will take a look at the three types of accounting, how they interact and the main types of statements, the differences and what they show to the different types of users


Here we consider the main aims of management accounting and its usefulness to management


Why we need to analyse costs and what we do with that information


The Definition of a cost unit and examples


In this lecture we consider the four classifications of costs and the way in which this shapes our thinking about the behaviour of costs in general


A look at a typical construction of a cost statement for a product

Section 3: Responsibility Centres

Here we look at a definition of a cost centre, examples of their use in both manufacturing and service industries and how systems need to be geared up to provide the base information


Moving on from cost centres we consider how profit centres are defined


At the top of the hierarchy are investment centres. We consider how they differ from cost and profit centres


In this critical lecture we look at how costs behave and the effect this has on how total and unit costs respond to changes in output.


Here we will consider how to calculate the cost per unit of output and look at an example which demonstrates how cost per unit decreases as activity increases.

Section 4: Coding

A look at the why, how and structure of coding systems

Section 5: Inventory Valuation

Here we look at the three types of inventory with examples of each


Moving on from lecture 20 we look at the three methods of valuation of issues and closing inventory and how these differently affect the results.


In this lecture we consider the formula for calculating closing inventory and direct materials used and the valuation of issues problem.

Section 6: Manufacturing Account

Here we look at the definition, use and construction of a manufacturing account.

Section 7: Labour Costs

In this lecture we consider the nature of labour costs


Here we consider the time - related method of calculation of pay, the actual methods of payment and the advantages and disadvantages of this method


Here we consider the output related method of calculation of pay and the advantages and disadvantages of this method


In this lecture we look at other items that may be included in the pay calculation, how these may come about and we work through an assessment question that highlights efficiencies of the workforce.


In this lecture we consider the nature of labour costs and their classification into direct or indirect costs.


A Summary of labour cost behaviour


A look at employee record keeping and its use in payroll

Section 8: Budgeting & Variances using Spreadsheets

In this lecture we begin our study of budgeting and variances by looking at a definition of budgeting.


This lecture reviews the main reasons why we need to budget.


In this lecture we take a look at what management gain from the budgeting process


A wrap of the course including further resources


Here we show a blank and completed budget template


In a critical lecture for the assessment we begin our study of variances by looking at cost and revenue variances and how we classify actual results from budget using example calculations.


How management can use value and percentage parameters to highlight budget variances that are significant to their operation.


Here we consider the use of spreadsheets to display variances from budgets

Section 9: Course Conclusion

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Instructor Biography

Steve Currie, Lecturer, chartered accountant, entrepreneur and speaker

Steve Currie has a varied background both in the corporate world and as an entrepreneur.

He graduated in business studies and then qualified as a chartered management accountant, later becoming a Fellow. He gained over 20 years' experience culminating at board level specialising in rationalisation, cost reduction and the sale and purchase of companies.

During the past 14 years as an entrepreneur, Steve has started, managed and sold businesses in diverse areas such as property, hospitality, social media and online shopping.

He has also developed a passion for teaching accountancy and business courses for both the public and private sector and is an active business mentor.

Steve is a qualified lecturer, holds a certificate in general management from Ashridge Business School, is a member of both the Institute of Enterprise and Entrepreneurs and the Association of Business Mentors and is also a mentor for The Prince's Trust.

Steve is also a speaker and under pseudonyms he currently has 10 books in publication.

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