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Lesson Plan - LU2-1
Lesson Plan - LU2-1
Learning Unit 2: Cost estimation and cost behaviour Drury 11th edition added in GREEN as a reference
Themes and learning outcomes Textbook (Drury SA 1st edition) reference Concept videos VC Learn and
textbook activities
Theme 1: Cost behaviour Chapter 4 (Chapter 3) Cost behaviour - Part 1 VC Learn
Classify costs in terms of cost Assignment of direct and indirect costs (Video from MFAC6211) Activity 2.1.1
behaviour principles Different costs for different purposes https://youtu.be/wu0szNweslM
Estimate costs using different Chapter 3 (Chapter 24) Drury textbook
techniques General principles applying to estimating cost functions Cost behaviour - Part 2 Question 4.1 – 4.8
Calculate the correlation coefficient Cost estimation methods (Video from MFAC6211) Question 3.1 - 3.14
when using regression analysis Tests of reliability https://youtu.be/3MBysM0eF7E Question 3.15 - 3.17
Calculate the coefficient of Relevant range and non-linear cost functions
determination when using regression A summary of the steps involved in estimating cost functions Drury Student
analysis Manual
Note: The least-square formulas and correlation coefficient Question 3.1 – 3.3
formula will be provided in assessments. Question 4.1 – 4.10
Theme 2: The Learning Curve Chapter 3 (Chapter 24) Learning Curve VC Learn
Make use of the learning curve to Cost estimation when the learning effect is present https://youtu.be/04vYWjyjarg Activity 2.2.1
calculate labour hours Estimating incremented hours and incremental cost
Example - Learning Curve Drury textbook
https://youtu.be/f3BtUJBNI1w Question 3.15
Drury Student
Manual
Question 3.5 – 3.7
Theme 3: Activity-Based-Costing (ABC) Chapter 5 (Chapter 11) ABC VC Learn
Describe the differences between The need for a cost accumulation system in generating (Video from MFAC6211) Activity 2.3.1
activity-based costing (ABC) and the relevant cost information for decision-making. https://youtu.be/L0ndqbbrZP4
traditional costing method Types of cost system Drury textbook
Identify the environment which is A comparison of traditional and ABC systems Question 5.1 – 5.21
suitable for the implementation of an The emergence of ABC systems
ABC system Volume-based and non-volume-based cost drivers Drury Student
Discuss the use of ABC in service and Designing ABC systems Manual
other organisations Activity hierarchies Question 5.1 – 5.8
Use Activity Based Costing to allocate Cost versus benefit considerations
overheads Time-driven ABC