, and
Introduction to management costing terminology .
Management accounting → application of
principles of
accounting and financial management to :
create , preserve and increase value for state holders
.
.
↳ support value creation in
organisations .
→
Management accounting includes cost
accounting
↳ record , classify and summarise cost data .
→ Covers both financial and non - financial information to set goals and forecast performance .
→ Serve the purpose it is intended for .
Management Accounting us .
Financial Accounting .
( confidential )
(public )
FA convergence
with MA :
→
required basic cost ( inventory valuation methods)
Management accountants
today are part d- the management team .( decision influencer)
↳ keep for innovation that help with efficiencies and competitive advantage
eyes can .
, Cost object →
product , service centre , activity ,
customer in relation to which costs are ascertained .
↳ items for which cost measurement is
required .
Cost Driver → factor that causes a
change in the cost of an
activity .
Cost classification for financial reporting purposes : .
Capitalised costs : .
recognised as Assets CSCFP )
pens ed periodic
F- ✗ -
costs : .
recognised on basis as
expenses ( Is )
Cost classification for Management Accounting Purposes : .
-0--7-00 Me
By cost function : .
Product cost → Total cost of
purchasing / delivering
cost of sales : → direct material .
→ direct labour
→ overhead .
Inventory held : → raw materials ( materials had far und )
work
→ in
progress ( Unfinished goods)
- -
held for
→ Finished goods ( sale )
Trading businesses : .
Service business : .
-
Cost of sales -
( I / 5) -
Operating cost related to
provision of service (IIT)
Inventory held ( SOFA
- -
No
inventory or Cort of sales .
Introduction to management costing terminology .
Management accounting → application of
principles of
accounting and financial management to :
create , preserve and increase value for state holders
.
.
↳ support value creation in
organisations .
→
Management accounting includes cost
accounting
↳ record , classify and summarise cost data .
→ Covers both financial and non - financial information to set goals and forecast performance .
→ Serve the purpose it is intended for .
Management Accounting us .
Financial Accounting .
( confidential )
(public )
FA convergence
with MA :
→
required basic cost ( inventory valuation methods)
Management accountants
today are part d- the management team .( decision influencer)
↳ keep for innovation that help with efficiencies and competitive advantage
eyes can .
, Cost object →
product , service centre , activity ,
customer in relation to which costs are ascertained .
↳ items for which cost measurement is
required .
Cost Driver → factor that causes a
change in the cost of an
activity .
Cost classification for financial reporting purposes : .
Capitalised costs : .
recognised as Assets CSCFP )
pens ed periodic
F- ✗ -
costs : .
recognised on basis as
expenses ( Is )
Cost classification for Management Accounting Purposes : .
-0--7-00 Me
By cost function : .
Product cost → Total cost of
purchasing / delivering
cost of sales : → direct material .
→ direct labour
→ overhead .
Inventory held : → raw materials ( materials had far und )
work
→ in
progress ( Unfinished goods)
- -
held for
→ Finished goods ( sale )
Trading businesses : .
Service business : .
-
Cost of sales -
( I / 5) -
Operating cost related to
provision of service (IIT)
Inventory held ( SOFA
- -
No
inventory or Cort of sales .
