BLOCK I: COST AND MANAGEMENT ACCOUNTING

FUNDAMENTALS, AND COST CLASSIFICATIONS

Introduction

This part introduces the basic cost concepts and management accounting
fundamentals cost and major cost classifications. The part consists of two units.
The first unit discusses about the basic cost and management accounting
fundamentals .The similarities and differences among cost accounting,
management accounting and financial accounting is also discussed in this unit.
The major classifications of cost on the basis of some practical factors are
discussed in the second unit.

Objectives

After studying the block you should be able to :

 Define Cost accounting. Management accounting and Financial

accounting.
 Understand functions of Cost accounting and Management accounting.
 Differentiate among Cost accounting and Management accounting and
Financial accounting.
 Define some key terminology related to cost and cost accounting.
 List major cost classifications based on factors considered in the block.
 Prepare the cost of goods manufactured statements