Management Accounting

Explore cost behavior in management accounting, distinguishing fixed, variable, and semi-variable costs (mixed costs), and understanding stepped costs and how total and per-unit costs change with activity levels.

Learn the three inventory types: raw materials, work in progress, and finished goods, and how to value them using FIFO, LIFO, and AVCO, plus basics of inventory control.

Learn how to order and receive raw materials, manage inventory through purchase requisitions, purchase orders, delivery notes, and the material control t account to track work in progress.

Apply the first in, first out method to calculate closing inventory value and total issues from an opening balance with receipts.

Select FIFO inventory valuation to achieve the highest reported first-year profit in a rising-cost environment.

Explore allocation and apportionment of service and production costs, identify direct versus indirect costs, and apply the direct and step-down methods of absorption costing to determine the cost per unit.

Explains absorption costing by combining direct and indirect costs into a cost per unit, including production and non-production overheads, and introduces allocation, apportionment, reapportionment, and step-down and direct methods.

Master absorption costing basics by learning how overhead is absorbed into cost units using budgeted overhead divided by budgeted activity, with labor and machine hour bases.

Learn how to account for overhead absorption by recording direct and indirect costs in work in progress, applying production overhead absorption, and reconciling over or under absorption into finished goods.

Explore activity based costing as a modern alternative to absorption costing, identifying cost drivers (setups, production runs, maintenance, and materials handling), and compare per unit costs under ABC and absorption.

Explore abnormal and normal losses, scrap value, and cost per unit in process costing with a 10 percent normal loss, and illustrate T-account treatment.

Explore abnormal loss and abnormal gain in process costing, calculating normal loss, cost per unit, and process accounts to analyze deviations between actual and expected output.

Learn budgeting basics in management accounting, including fixed and flexible budgets, variance analysis, and planning and control, with practical unit-based budgeting examples.