Basic Costing
Recap
Homework
Basic Costing
 Lesson 1 Chapter 1
- Introduction to basic costing systems
Objectives
 Identify sources of income and expenditure.
 Identify the 3 types of industry and explain what
they are.
 Analyse the advantages and disadvantages of
computerised recording versus a manual system.
 Explain the purpose and define the key
characteristics of financial accounting.
 Explain the purpose and define the key
characteristics of management accounting
including how comparison can be made.
Types of Business
 Sole Trader
 Partnership
 Limited Company
Types of business transactions
Types of Transactions
 Cash / Credit
 Capital / Revenue
Define the following types of Industry
 Manufacturing
 Retail
 Service
Accounting Record Systems
or
What are the Advantages & Disadvantages?
Accounting Systems
 Financial Accounting
 Management Accounting
Financial Accounting
Produce Financial Statements
Characteristics of Financial Accounting
 Using historical data
 Produced for outsiders
 Outsiders make the rules
 Must be accurate
Role of Management Accounts
Decision making - Short, medium and
long term.
Planning – Short term plans – Budgets
Control – Checking decisions are correct.
Difference between actual and budget variances.
Types of Comparisons
Summary
 Lots of terminology to remember
 Types of transactions
 Types of industry
 Role of Financial Accounts
 Role of Management Accounts