CST/MGT ACCT: AFIN 210
SCHOOL OF BUSINESS AND MANAGEMENT
[FT/PT/DST] UNDERGRADUATE PROGRAMMES
COURSE SYLLABUS
COURSE NAME: COST AND MANAGEMENT
ACCOUNTING
COURSE CODE: AFIN 210
______________________________________________________________________________
Course Objectives:
The course combines two areas of accounting that are important. Cost Accounting and
Management Accounting. The objectives of the course are to:
i.
Enable candidates understanding the relationship between of Cost Accounting,
Management Accounting and Financial Accounting and the importance of this
Accounting information.
ii.
Understand the various Concepts, Principles and Techniques Applied in Cost and
Management Accounting.
iii. Develop analytical skills and abilities for solving practical business problems using
Cost and Management Accounting knowledge.
Learning Outcomes:
Upon completion of this course students should be able to:
i.
ii.
iii.
iv.
Demonstrate a clear understanding of the value or importance of Cost and
Management Accounting information in any business.
Compute Costs/Prices and other Information for Decision making using Cost and
Management Accounting Techniques/Methods.
Prepare Cost and Management Accounting Reports for relevant use in an
organization.
Analyze business transactions and reports and provide advice for organizational
decisions.
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CST/MGT ACCT: AFIN 210
COURSE STRUCTURE:
UNIT 1: Introduction
i.
Definition, Nature and Purpose of Cost and Management Accounting
ii.
Costing, Management and Financial Accounting relationship and differences
UNIT 2: Cost Concepts, Classification, Behavior and Cost Determination
i.
Concept of Costs; Recording Costs; Analysis of Costs and Reporting; Cost
Objects, Units; Cost Centers,
ii.
Costs Elements: Material, Labour, Other Expenses.
iii. Cost Classification: Nature/Purpose/Function Direct and Indirect/Overhead Costs/
Period Costs.
iv.
Cost Behavior: Variable/Semi Variable and Fixed Costs
v.
Cost accumulation: Unit Cost, Prime Costs, Total costs.
vi.
Cost determination: High- Low method
UNIT 3: Costing for Materials, Labour and Overheads
i.
Valuation/Inventory Management
ii.
Labour: Remuneration/incentive schemes/Turnover
iii. Overhead Costs: Nature
iv.
Absorption Costing [Allocation, Apportionment Absorption, Under/Over
Absorption, Reconciliation].
v.
Marginal Costing
vi.
Absorption vs. Marginal Costing
vii.
Activity Based Costing(ABC)
UNIT 4: Cost Accounting Techniques/Systems
i.
Job and Batch Costing
ii.
Process Costing/Joint/By-Products
iii.
Contract Costing
iv.
Service Costing
UNIT 5: Cost-Volume-Profit Analyses (CVP)
i.
Contribution, Breakeven (B.E) point; margin of safety; contribution, graphical
representations of B.E.
ii. Terminology: Relevant/Avoidable/Sunk/Opportunity/Incremental/Marginal Costs
iii. Decision Making: Make or Buy, Divestment, Limiting Factors Decisions.
UNIT 6: Standard Costing and Variance Analysis
i.
Establishment of Standards and types of standards
ii. Variance Analysis: Material,Labour,Overhead, Sales and Volume Variances
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CST/MGT ACCT: AFIN 210
UNIT 7:
i.
ii.
iii.
iv.
v.
Management Control Systems
Organizational Controls
Types of Control
Advantages and Disadvantages of Controls
Responsibility Centers: Cost,Revenue,Pofit,Investment
Controllability principal
UNIT 8: Budgeting Process
i.
ii.
iii.
iv.
Nature of budgets and the budgetary process, types of budgets; role of budgets;
benefits and limitations of budgets.
Preparation of Sales,Materials,Labour,Overheads and Master Budget;
Preparation of Cash budget and Flexible Budgets.
The Characteristics of Activity Based Budgets (ABB), Zero Base Budget (ZBB).
Assessment Criteria:
FT/PT Students
 Test and Assignments:
 Mid Semester Examination
 Final Examination:
 Total Marks:
DST Students
 Test and Assignments:
 Final Examination:
 Total Marks:
Reference Materials:
1.
2.
3.
4.
5.
20%
20%
60%
100%
40%
60%
100%
Costing Terry Lucey DPP (7th ) edition.
ZICA T2 Costing Text
Management and Cost Accounting C. Drury (7th ) edition
Management Accounting Terry Lucey (5th) edition [special edition]
Managerial Accounting for business decisions Ray Proctor
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