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INTRODUCTION
TOPIC 1
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ACCOUNTING

a language

that communicates economic information

to people who have an interest in an
organization

who have an interest in an organization ??

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FINANCIAL
ACCOUNTING
part of accounting

covers the classification and

recording of actual transactions of an
entity in monetary terms in
accordance with established
concepts, principles, accounting
standards, legal requirements (CIMA)

Function
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COST ACCOUNTING

part of management accounting

establishes budgets and standard

costs and actual operations,
processes, departments or products
and the analysis of variances,
profitability or social use of funds”
(CIMA)

Functions
 DECISION MAKING

Human resources slide 4 select the best course of action

PERFORMANCE STEWARDSHIP
EVALUATION
To record and
actual and planned report
performance performances

RECORDING ACCOUNTING
ASPECTS
classifying,
quantifying & Organizes
gathering of bus procedures and
info & transaction guidelines

MA vs FA : Similarities
 MA vs FA : Differences
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ACCOUNTING INFORMATION
PRINCIPLES Qualitative &
GAAP quantitative

USERS
Internal & external REPORT
FORMAT
Standard format
 MA vs FA : Differences
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RECORD KEEPING

Formal & informal

ACCOUNTING
TIME FRAME ENTITY
Past & future As a whole & by
department
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MATERIAL
COST
the amount of expenditure incurred
on or attributable to a specified thing
or activity.

MATERIALS
COST

LABOUR EXPENSES LABOUR

EXPENSES
 COST
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CLASSIFICATION slide 7

NATURE FUNCTION BEHAVIOUR

DIRECT & INDIRECT MANUFACTURING & NON FC & VC

Prime Cost & Overhead Production & Non Fixed, variable & mixed
production cost
 COST
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CLASSIFICATION slide 7

ONTROLLABILITY NORMALITY

CONTROLLABLE & UNCONTROLABLE NORMAL & ABNORMAL

influenced by the action of a specified member of expected and planned ?

undertaking
 COST
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CLASSIFICATION slide 7

AVOIDABLE OPPORTUNITY CONVERSION

AVOID & UNAVOID DL + OH

converting raw materials into

can be avoided? The value of benefit foregone or finished product.
lost
COST STATEMENT
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the detailed cost of a cost centre or cost unit

RM
Direct Material 0.00
Direct Labour 0.00
Direct Expenses 0.00
PRIME COST 00.00
Production Overhead 0.00
PRODUCTION COST 00.00
Selling & Distribution Overhead 0.00
Administrative Overhead 0.00
TOTAL COST 00.00
PROFIT 0.00
SELLING PRICE 000.00
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TUTORIAL