THE INSTITUTE OF CAT L2.3 MANAGEMENT ACCOUNTING Study Manual
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- Study Unit Title Page
- Some More Terminology 30
- 4 Materials and Stock Control 51
- 5 Labour 91
- Methods of Remuneration 93
- 7 Job Costing/Batch Costing 155
- 9 Process Costing 1 183
- Application and General Principles 184
- 17 Cost Book Keeping 429
- INTRODUCTION TO the COURSE
- A. NATURE AND FUNCTIONS OF COST ACCOUNTING
- b. COST ACCOUNTING COMPARED WITH FINANCIAL ACCOUNTING
- c. THE ROLE OF COST ACCOUNTING IN A MANAGEMENT INFORMATION SYSTEM
- B. BASIC COSTING METHODS
- C. COST CENTRES AND COST UNITS
- D. SUPERIMPOSED PRINCIPLES AND TECHNIQUES
- E. SOME MORE TERMINOLOGY
- F. DIFFERENCE BETWEEN ABSORPTION AND MARGINAL COSTING SYSTEMS
- A. Introduction
- A. INTRODUCTION AND DEFINITIONS
- B. ACCOUNTING FOR MATERIALS
- C. OUTLINE OF PROCEDURES
- Ordering Stock
- Receiving Stock
- Issuing Stock
- Storing Stock
- Stock Levels
- D. ORGANISATION AND DOCUMENTATION OF PURCHASING
- F. PROCEDURE IN THE ACCOUNTS DEPARTMENT
- G. THE STOREKEEPER AND STORES ISSUES
- H. STOCK LEVELS
- I. ECONOMIC ORDER QUANTITY
- J. STOCK TURNOVER
- K. ACCOUNTING RECORDS REQUIRED FOR MATERIALS
- L. STOCKTAKING
- M. THE PRICING OF MATERIAL ISSUES
- N. OBSOLETE, DORMANT AND SLOW-MOVING STOCK
- A. METHODS OF REMUNERATION
- B. TIME RATES
- C. INCENTIVE SCHEMES
- D. PIECE-RATEs
- E. DIFFERENTIAL PIECE-RATE SYSTEMS
- F. PREMIUM BONUS SCHEMES
- G. GROUP BONUS SCHEMES
- H. PERFORMANCE-RELATED PAY
- I. PROFIT SHARING AND CO-PARTNERSHIP
- J. NON-MONETARY INCENTIVES
- K. MEASUREMENT OF THE EFFICIENCY OF LABOUR
- L. LABOUR TURNOVER
- M. RECORDING LABOUR COSTS
- Time Recording Methods
- N. INDIRECT LABOUR
- O. TREATMENT OF OVERTIME
- P. SUMMARY
- A. EXAMPLES OF EXPENSES
- B. NOTIONAL EXPENSES
- C. CAPITAL EQUIPMENT
- D. INTRODUCTION TO OVERHEAD COSTS
- E. OVERHEAD ALLOTMENT
- Dept 1
- Dept 2
- Service Centre
- General Overhead Cost Centre
- F. OVERHEAD ABSORPTION
- G. THE USE OF PREDETERMINED ABSORPTION RATES
- H. TREATMENT OF ADMINISTRATION OVERHEAD
- I. TREATMENT OF SELLING AND DISTRIBUTION OVERHEAD
- J. ACTIVITY-BASED COSTING
- A. INTRODUCTION
- B. FACTORY JOB COSTING
- A. APPLICATION AND GENERAL PRINCIPLES
- B. BUILDING UP PROCESS COSTS
- C. Examples of Process Costing
- Example 1: Demonstration of Process Accounts and Stock Accounts When the Value of Opening and Closing Work-in-Progress is Given
- Example 2: Introduction to “Equivalent Units” - Work-in-Progress at End of Period Only
- Example 3: Work-in-Progress at Both Beginning and End of the Period: FIFO Method
- Example 4: Work-in-Progress at Both Beginning and End of Period: Average Method
- Essential Differences Using FIFO and Average Methods
- Example 5: Alternative Layout Where a Process Other Than the First is Involved - The layout is shown below.
- D. Losses in process costing – normal losses and abnormal losses
- A. OPERATING COSTING
- B. PROCESS COSTING INVOLVING BOTH LOSSES AND WORK-IN-PROGRESS
- A. INTRODUCTION
- B. LIMITATION OF ABSORPTION COSTING
- C. FIXED, VARIABLE AND SEMI-VARIABLE COSTS
- D. DEFINITION OF MARGINAL COST
- E. THE MARGINAL COST EQUATION: TERMINOLOGY OF MARGINAL COSTING
- F. USES OF MARGINAL COSTING
- G. ARGUMENTS AGAINST MARGINAL COSTING
- I. worked example
- J. when production is constant but sales fluctuate
- K. when sales are constant but production fluctuates
- L. marginal and absorption costing compared
- A. BREAK-EVEN ANALYSIS
- B. BREAK-EVEN CHART
- C. THE PROFIT VOLUME GRAPH
- D. USE OF THE PROFIT VOLUME GRAPH FOR MORE THAN ONE PRODUCT
- E. THE PROFIT/VOLUME OR CONTRIBUTION/SALES RATIO
- F. MARGINAL PROFIT AND LOSS ACCOUNT
- It should be clear that over several periods taken together such that stock at the beginning of the first period and at the end of the last period was nil, the absorption and marginal costing methods would give the same total profit, but the amount of...
- A. INTRODUCTION
- Relevant costs for decision making purposes are:
- Maximum sales demand (units) 120 160 110
- a. introduction
- b. types of standard cost and system
- c. setting standards
- d. types of variance
- e. the standard hour
- f. measures of capacity
- g. limitations of standard costing
- H. purpose of variance analysis
- I. MEANING and possible causeS OF variances
- Scheme of Analysis: Absorption Costing
- Variance Calculations
- (a) Direct Materials
- (b) Direct Labour
- (c) Variable Overheads
- (i) Variable Overhead Expenditure Variance
- (ii) Variable Overhead Efficiency Variance
- (d) Fixed Overheads
- (i) Fixed Overhead Expenditure Variance
- (ii) Fixed Overhead Volume Variance
- (iii) Fixed Overhead Capacity Variance
- (iv) Fixed Overhead Efficiency Variance
- (e) Sales Variances
- (i) Sales Margin Price Variance
- (ii) Sales Margin Volume Variance
- Summary of Variances
- Analysing Variances: Marginal Costing
- Comparing Variances Resulting Under Absorption and Marginal Costing
- J. relationships between variances and investigation of their causes
- K. planning and revision variances
- L. worked example
- a. definitions
- B. advantages of budgetary control systems
- C. types of budget
- D. preparation of budgets
- E. Control mechanism
- f. Flexible budgets
- G. Behavioural implications
- h. Budgeting and long-term objectives
- I. Public Sector Budgets
- a. FUNCTIONAl budgets
- B. master budgets
- C. cash budget
- D. flexible budgets
- E. zero-base budgeting (zbb)
- F. Budgetary control and standard costing - behavioural considerations
- A. COST ACCOUNTING SYSTEMS
- B. INTEGRATED OR INTEGRAL SYSTEMS
- KEY Management Accounting TERMS