Cost Accounting Manual

Topics: Management accounting, Variable cost, Costs Pages: 383 (37422 words) Published: December 7, 2014
Cost Accounting Manual 2013

STUDY NOTES FOR COST
ACCOUNTING

BY
ATAUSH SHAFI

Last Updated on: Tuesday, January 01
01, 2013

1

© For Suggestions & Feedbacks, contact: ATAUSH SHAFI (ataushshafi@gmail.com)

Cost Accounting Manual 2013
Table of Contents
CIMA OFFICIAL TERMINOLOGY .................................................................................... 3 COST OF GOODS SOLD FORMULE................................................................................ 13 COST CLASSIFICATION .................................................................................................. 17 PROCESS COSTING ........................................................................................................... 18 BYBY-PRODUCT ...................................................................................................................... 30 DECISION MAKING........................................................................................................... 35 BUDGETING ........................................................................................................................ 66 STANDARD COSTING ...................................................................................................... 76 MATERIAL COSTING ...................................................................................................... 100 FACTORY OVERHEAD ................................................................................................... 112 BREAK EVEN ANALYSIS .............................................................................................. 117 ABSORPTION/MARGINAL COSTING........................................................................ 128 LABOR ................................................................................................................................. 134 COST CYCLE ...................................................................................................................... 139 JOB ORDER COSTING .................................................................................................... 148 PAST PAPERS ................................................................................................................... 150 IMPORTANT POINTS IN EACH PAST PAPERS ...................................................... 169 EXAM RUBRIC .................................................................................................................. 173

2

© For Suggestions & Feedbacks, contact: ATAUSH SHAFI (ataushshafi@gmail.com)

Cost Accounting Manual 2013

CIMA OFFICIAL TERMINOLOGY
Terms

Definitions

Cost accounting

Gathering of cost information and its attachment to cost
objects, the establishment of budgets, standard costs and
actual costs of operations, processes, activities or products; and the analysis of variances, profitability or the social use of funds.
A product, service, centre, activity, customer or distribution channel in relation to which costs are ascertained.
Unit of product or service in relation to which costs are
ascertained.
• As a noun, cost is ‘The amount of cash or cash
equivalent paid ….
• As a verb, cost is ‘To ascertain the cost of a specified thing or activity.
• The word cost can rarely stand alone and should be
qualified as to its nature and limitations.
Industry sector
Cost unit
Brick-making
1,000 bricks
Electricity Kilowatt-hour
(KwH)
Professional services
Chargeable hour
Education
Enrolled student
Activity
Cost unit
Credit control
Account maintained
Selling
Customer call

Cost object
Cost unit

‫اس‬

cost unit
Cost Center

Cost classification

Direct cost
Prime cost

3

‫ر‬

‫!م‬

ö costing
cost unit

Product

ð

‫ن‬

Type of cost centre
Examples
Service location
Stores, canteen
Function
Sales representative
Activity
Quality control
Item of equipment
Packing machine
Arrangement of elements of cost into logical groups...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Cost-benefit Analysis and Capacity Cost Rates Essay
  • Management Accounting Essay
  • BBA Core Managerial Accounting Essay
  • Financial & Management Accounting Essay
  • Introduction to Management, the Controller, and Cost Accounting Essay
  • Cost Accounting Essay
  • Cost Accounting Essay
  • Essay about Cost Accounting Study Guide

Become a StudyMode Member

Sign Up - It's Free