Method and Practice of Cost Accounting

Learning outcomes

At the end of this course, students will be able to compare and contrast marginal (or variable), throughput and absorption accounting methods in respect of profit reporting and stock valuation; discuss a report which reconciles budget and actual profit using absorption and/or marginal costing principles; discuss activity-based costing as compared with traditional marginal and absorption costing methods, including its relative advantages and disadvantages as a system of cost accounting; apply standard costing methods, within costing systems, including the reconciliation of budgeted and actual profit margins

Topics

1. Activity-based costing
2. Integration of standard costing with marginal cost accounting
3. Absorption cost accounting and throughput accounting
4. Back-flush accounting
5. Just in time production
6. Interpretation of variances: interrelationship
7. Significance