MGT402 Handouts pdf download | Cost & Management Accounting Notes (pdf)

MGT402: Cost & Management Accounting

Expenditure management in accounting is a form of accounting designed to help business owners predict how much a business will cost. The purpose of this type of calculation is to avoid over-budgeting so that businesses can hold on to as much revenue as possible. MGT402 Handouts pdf

MGT402 Handouts pdf

  Course Category: Accounting, Banking & Finance

Course Outline

Introduction, Financial Statements, Costing of Material, Costing of Labor, Costing of Factory overhead, Job order costing, Process Costing, Valuation of Joint and By Product, Marginal and Absorption Costing, Cost Volume Profit Analysis, Budgeting, Decision Making MGT402 Handouts pdf


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MGT402 Handouts pdf
MGT402 Handouts pdf


MGT402: Cost & Management Accounting

Cost Accounting

Cost Accounting is an expanded accounting system that provides managers with immediate costs of producing and/or selling each product and providing a specific service.

 Management Accounting

Management accounting is the use of the knowledge and expertise of professionals in the preparation and presentation of financial information in a manner that will assist managers in decision-making and planning and managing business operations.
Use of Cost and Management Accounting
1. Determines total production costs and sales costs
2. Determines the fair value of the sale
3. Identifies profitable products, locations, and performance levels/capacity
4. Used to determine whether to produce or buy 5. It assists in planning and managing production costs.

Cost Classification

Cost components (Direct Items, Direct Work, and Other Production Costs) can be classified as direct costs or indirect costs.

1- Direct Cost

Direct costs are costs that can be fully tracked for a product or service that determines the cost. Direct costs can be determined economically by a specific marketable product or service (cost unit). a) The cost of a direct asset is the cost of items that are known to be used in the production and sale of a product or service. b) Direct labor costs are the direct costs of personnel used to produce a product or to perform a service.

2-Indirect Cost/Overhead Cost

Indirect costs or overhead costs are costs incurred during the production of a product or service, but which cannot be fully monitored for the product or service in full. Expenses incurred by employees, property, or other services that cannot be economically identified by a cost product or service (cost unit).
Examples include Manager salaries, cleaning supplies, workshop insurance, etc.

Cost Behavior

Cost behavior is the way in which total production costs are affected by fluctuations in productivity (productivity).

 Activity level

The level of activity refers to the amount of work done or the number of events that took place. Depending on the circumstances, the level of activity may be related to the production capacity over a period of time, the number of items sold, the number of items sold, the number of invoices issued, the number of invoices received the number of units of electricity used. , staff changes, etc.

Step Fixed Cost

A fixed-step is a cost that is consistent in a certain scope of work and rises to a new level that does not change once the distance has passed. The extent to which the adjusted costs remain unchanged is known as the appropriate range.


MGT402 Handouts pdf Here

MGT402: Cost & Management Accounting Notes (pdf)