The relationship between financial accounting, cost accounting and management accounting. Concept and breakdown of costs. Methods of cost classification. Type and purpose breakdown of costs, costing breakdown of costs, costs in relation to operating capacity utilisation and other aspects of cost breakdown.
Cost management along performance lines. Costing, departmental and performance aspects of costing, costing process, allocation. Costing by division and costing using equivalence numbers. Concept of the costing system, costing as part of the economic information system of the enterprise.
Full costing. Incremental costing, costing base and allocation issues in costing, applicability of incremental costing. Hourly overhead rate method.
Credit test I.
Full costing. Phased and sequential costing. ABC method.
Incomplete costing, fixed cost allowance and first stage profit. Basic cost, revenue and profit management context. Selling price, variable costs, fixed costs, margin. Break-even analysis, fixed cost allowance and second-tier profit.
Cost budgets in management. Purpose, process and budgeting, cost budgets for centre management. Budgeting methods_ ZBB.
Cost management control tools. Differential costing methods, standard costing method. Standard cost method and variance analysis.
Cost, revenue and profit and loss presentation in cost accounting. Single-circuit and double-circuit system of accounting information.
Accountability management, the relationship between the organisational and economic structure of the enterprise. Value criteria in the management of responsibility centres. Costs, revenues, profit and loss of centres and types of transfer pricing.
Credit test II.