Cost & Management Accounting Basics

Explore cost and management accounting basics, covering costing systems, cost classification, cost behavior, inventory valuation methods (fifo, lifo, average), labor and overhead costs, variance analysis, and the computer-based exam format.

Explore costing systems from sole traders to limited companies, and distinguish capital versus revenue expenditure. Compare cash versus credit transactions; management accounting with financial accounting for internal and external reporting.

Explore cost classification by function and type, distinguishing production costs including material, labor, and overhead from non production costs admin, selling, distribution, and finance, and identifying direct versus indirect overhead.

Explore coding costs through alphabetical, numerical, and alphanumeric systems to allocate expenses to cost centers and cost categories, such as labor, materials, overhead, and salaries, with practical examples.

Explore the different cost behaviours, including fixed, variable, step, and semi-variable costs, and learn how to identify them using the high-low method.

Learn how to value inventory using fifo, lifo, and afco, comparing their effects on closing inventory, cost of sales, and gross profit through worked examples.

Explore labor costs and overheads, including time-based, piecework, and incentive remuneration, plus direct and indirect labor, overtime, and differential piecework calculations.

Learn labor costs and overheads by analyzing time-based pay with bonuses and piecework pay, and calculate overhead absorption rates using machine hours, labor hours, and units for variance analysis.

Analyze the difference between budgeted and actual figures to identify favorable and adverse variances in sales and costs, including how to compute and interpret variance percentages.