COST AND MANAGEMENT ACCOUNTING

Cost and Management Accounting are two key branches of accounting introduced to bridge a gap which Fundamental Accounting couldn’t solve. It is aimed at ensuring that business resources are utilized effectively and efficiently. It is a decision-making guide/tool used by managers to minimize expenses on resources with an aim of maximizing profits. The major areas covered include: Introduction: Definition Scope Objectives and Significance of Cost Accounting: Cost Object Cost Centers and Cost Unit: Classification of Cost Cost Ascertainment: Material Cost Employee Costs Direct Expenses Overheads Cost Book Keeping: Cost Accounting Records Ledgers and Cost Statements: Items excluded from Cost and Normal and Abnormal Items/Cost: Integral Accounts: Reconciliation of Cost Accounting Records with Financial Accounts Methods of Costing: Job Costing Batch Costing Contract Costing Process Costing Cost Accounting Techniques: Marginal Costing Standard Costing & Variance Analysis Budget and Budgetary Control