MANAGEMENT
ACCOUNTING
 Unit 1: Management Accounting – An Introduction ..................................................................................... 6
 Unit 2: Classification of Costs ..................................................................................................................... 12
 Unit 3: Materials .......................................................................................................................................... 21
 Unit 4: Labour .............................................................................................................................................. 35
 Unit 5: Absorption Costing and Marginal Costing ..................................................................................... 55
 Unit 6: Cost-Volume-Profit Analysis ........................................................................................................... 69
 Unit 7: Budgets and Budgetary Control...................................................................................................... 99
 Unit 8: Standard Costing ........................................................................................................................... 123
 Unit 9: Capital Investment Appraisal ........................................................................................................ 144
 Calculation of the manufacturing cost per unit
5.1
INTRODUCTION
 In a period
 Total Manufacturing costs / units produced
 needed for
 Manufacturing costs
 Units sold and on hand
 Net Profit
 Absorption costing and marginal costing
 Marginal costing = direct costing or
 Absorption costing = full costs
 Manufacturing cost
 Manufacturing cost
variable costing
method or total cost
 Direct material
 Both variable and fixed
 Direct labour
 Fixed cost are a product cost
 Variable manufacturing costs
 Marginal income = all variable costs
 Fixed manufacturing oosts = period
costs