Professional Documents
Culture Documents
Seminar 1
Course Introduction
About me
and structure
Assessment
3
Course materials
NEW BOOK: Langfield-Smith et al
Management Accounting: Information
for Creating and Managing Value (7th
edition)
Available from bookshop
Other readings (distributed separately)
Note: Photocopying textbooks is illegal.
You will not be allowed to attend class
with a photocopied textbook.
Staff Consultation
Seminar 1
Basic Management
Accounting Concepts
Seminar objectives
1. Describe management accounting, its general
objectives, and its role in an organization
2. Define basic terms and concepts associated with
cost accounting systems and cost assignment.
LO1
LO2
10
11
HR
Financial resource
Products
technological resources
Physical resources
11
Controlling
13
14
Costing systems
Budgeting systems
Performance measurement systems
Cost management systems
approaches
MAS
book p39
15
Emphasis on costs
Why
Non-financial
16
Costs
What are they?
Example:
COGS
Inventory
= $100 (expense)
= $200 (asset)
17
Cost classifications
Traceability
direct
Behaviour
fixed
Prime Costs
chi ph gc
Conversion Costs
18
1.
Much
Level of activity, and associated cost drivers 100 cans of Coca-cola or 1000 cans
=> sugar changes
Basic distinction: variable (changes in direction proportion to change in
activity) and fixed (remains unchanged despite change in activity)
We will explore this more next week cost of machine
20
2.
ngun gc
direct or indirect
Measuring
Direct
Indirect
20
(direct or indirect)
handling
inspection
product design
maintenance
labour
Cost object
security
Direct costs
electricity
Indirect
costs
21
3.
Classifying : Controllable/uncontrollable
Ideally,
Some
23
24
period costs = costs are deducted as expenses during the current period
without ever being included in the value of stock held
product costs = identified with a finished product
as part of value stock
become expenses COGS only when the stock is sold
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25