Unit description
The student will judge both current and future cost information. Cost data will be collected, compiled, and examined and then processed into information that is of use to management.
The student will gain knowledge of budgetary planning and control, and preparing forecasts and budgets, and then compare them to actual results. Students will consider different costing and budgetary systems and discuss the causes of resulting variances.
The student will be introduced to materials, overheads, direct and indirect, fixed, variable and semi-variable, job costing, batch costing, process costing, contract costing, service costing, absorption and marginal costing, traditional overhead absorption and activity-based costing, cost plus pricing, market pricing, and target costing.
The student will understand preparation, comparison with other data, explanation of implications, monitoring and assessing to identify potential improvements, definitions and interaction, added value, and total quality management.
The student will also be introduced to purposes, benefits, links with organisational objectives/strategies, the budget manual, budgets as planning, coordinating, motivation and control devices, limiting or key factors, master, subsidiary and functional budgets, cash budgets, the preparation of sales budgets, debtors’ budgets, creditors’ budgets, production costs, raw materials and finished goods budgets, incremental, zero-based, fixed and flexible, padding the budget, spending to budget, and creative budgets.
The student will also gain knowledge of analysis, calculations, possible causes, corrective actions, operating statements, reconciliation of budgeted and actual results, relevance to budgeting, and identification of responsibility for variances.
|
