Investigate calculating, controlling and reporting costs of doing business.

Indicators for this outcome
(a) Define cost accounting and explain how it relates to management accounting and financial accounting.
(b) Differentiate cost into two categories (i.e., manufacturing costs and nonmanufacturing costs) to be used in management analysis.
(c) Classify direct labour, direct materials and manufacturing overhead as manufacturing costs.
(d) Classify marketing/selling costs and administration costs as non-manufacturing costs.
(e) Debate the importance of labour costs to management accounting.
(f) Assess and describe how opportunity costs and sunk costs become part of the management decision-making process.
(g) Prepare the manufacturing statement, the schedule of cost of goods manufactured statement and the income statement for a merchandising business and manufacturing business and then examine the purpose of each.
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