CPA 011: Management Accounting - Globopoint Learning Centre

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GENERAL OBJECTIVE

This paper is intended to equip the candidate with knowledge, skills, and attitudes that will enable him/her to apply the principles of cost estimation and cost and management accounting techniques and methods for decision making.

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Course Content

THE CONTEXT OF MANAGEMENT ACCOUNTING

Definition and scope of Cost and Management accounting

26:28
Role of Management Accounting in decision making

15:57
Users of Management accounting information

13:39
Cost accounting as a subset of management accounting

17:58
Management accounting and financial accounting

00:00
Difference between management accounting and financial accounting

16:49
Relationship between Management accountant and other managers

17:57
Limitations of management accounting

11:04

COSTING TERMS AND CONCEPTS

INTRODUCTION TO COST ESTIMATION

COST ACCUMULATION

ACTIVITY BASED COSTING

PRODUCT COSTING METHODS

MARGINAL AND ABSORPTION COSTING

COST-VOLUME-PROFIT ANALYSIS (BREAK-EVEN ANALYSIS)

Introduction to C-V-P analysis

13:35
Assumptions of C-V-P analysis

13:42
Break-even chart

13:36
Profit-volume chart

12:24
Single product C-V-P analysis

19:31
Multiple product C-V-P analysis

31:34
Limitations of C-V-P Analysis

12:43
Applications of marginal costing in decision making (make/buy decisions; discontinue a product; choice of a product where limiting factor exists; acceptance of a special offer); overriding considerations to the above decisions

01:05:45

BUDGETARY CONTROL

STANDARD COSTING AND VARIANCE ANALYSIS

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About Course

Book a Course Recap Zoom Session

Book a One on One Coaching Session – CLICK HERE!

What Will You Learn?

Course Content

THE CONTEXT OF MANAGEMENT ACCOUNTING

Definition and scope of Cost and Management accounting

Role of Management Accounting in decision making

Users of Management accounting information

Cost accounting as a subset of management accounting

Management accounting and financial accounting

Difference between management accounting and financial accounting

Relationship between Management accountant and other managers

Limitations of management accounting

COSTING TERMS AND CONCEPTS

Cost definition and identification

Cost classification

Cost classification bases; by time; by behaviour; by function; identification with stock; by relevance for decision making; by management control

Types of cost systems

Maintaining a cost database

INTRODUCTION TO COST ESTIMATION

Accounts Analysis method

High-Low method

Industrial Engineering method

Scatter graph method

Ordinary Least Square method (simple regression only)

COST ACCUMULATION

Valuing inventory issues using FIFO, LIFO, standard cost method, weighted average, simple average and replacement cost method

Accounting for direct labour cost: Methods of labour remuneration; Bonus schemes; Factors influencing wages

Accounting for overhead cost: Overhead apportionment; Primary overhead distribution; Secondary overhead distribution methods (continuous allocation method, algebraic method, direct allocation method, sequential allocation method); Absorption of overheads

ACTIVITY BASED COSTING

Meaning of activity-based costing

Distinction between activity-based costing and the Traditional absorption costing

Classification of cost drivers

The hierarchy of cost drivers

Overhead absorption rates – ABC

Income statements – one unit

Income statement – total output/sales

PRODUCT COSTING METHODS

Introduction to costing methods

Specific order costing; Job order costing; Batch costing

Service costing

MARGINAL AND ABSORPTION COSTING

Differences between marginal costing and absorption costing

Comparative income statements

Arguments for the use of marginal costing

Arguments for the use of absorption costing

Reconciliation statement

COST-VOLUME-PROFIT ANALYSIS (BREAK-EVEN ANALYSIS)

Introduction to C-V-P analysis

Assumptions of C-V-P analysis

Break-even chart

Profit-volume chart

Single product C-V-P analysis

Multiple product C-V-P analysis

Limitations of C-V-P Analysis

Applications of marginal costing in decision making (make/buy decisions; discontinue a product; choice of a product where limiting factor exists; acceptance of a special offer); overriding considerations to the above decisions

BUDGETARY CONTROL

Introduction to budgets: Essential features of a budget; Objectives of budgetary control; Difference between forecasts and budgets

Types of budgets: Classification based on time (long-term budgets, short-term budgets and current budgets); Classification based on functions (functional/subsidiary budgets, master budgets); Classification based on capacity (fixed budgets, flexible budgets)

Preparation of budgets: Functional budgets including cash budget and master budget; Fixed and flexible budgets

STANDARD COSTING AND VARIANCE ANALYSIS

Introduction: Types of standards (basic standards, ideal standards, attainable standards); Advantages and disadvantages of standard costing

Causes of the various variances and remedies

Student Ratings & Reviews

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