Course Details

Course Information Package

Course Unit CodeABSA205
Course Unit Details
Number of ECTS credits allocated5
Learning Outcomes of the course unitBy the end of the course, the students should be able to:
  1. Compare and contrast cost accounting to financial accounting.
  2. Identify and define costs by classification and behaviour.
  3. Evaluate the concept of cost behaviour and explain its relevance to costing.
  4. Examine the principles of costing concerning materials, labour and overheads and apply these to mini-case studies.
  5. Develop the techniques involved in specific order and continuous costing to solve mini-case studies.
Mode of DeliveryFace-to-face
Recommended optional program componentsNONE
Course Contents

Introduction to cost and financial accounting: Contrast cost with financial accounting. Identify and define costs by classification and behaviour.

Accounting for materials: applying the FIFO, LIFO and Weighted average methods of stock valuation. Understanding how each method may affect the firm’s profitability.

Costing for labour: Understanding different methods of remuneration such as the time basis and piecework basis and applying these methods. Payroll accounting.   

Costing for overheads: Explain the terms “allocation”, “apportionment” and “absorption” in the context of overhead accounting. The overhead analysis sheet and its application to determining an overhead absorption rate. Understanding the process of determining the overhead absorption rate.

Specific order costing techniques: Examining and applying job costing, batch process costing and contract costing.

Process costing: Applying the double entry bookkeeping principles for process costing. Understanding and applying the treatment of losses (normal and abnormal) and equivalent units.

Joint costs:  Examine the accounting treatment of joint costs and by products.

Recommended and/or required reading:
  • Drury, C, Management and Cost Accounting, 7th Edition (or latest edition), Thomson Press 2008.
  • F Wood, A Sangster, Business Accounting 2, 11th Edition, Financial Times/ Prentice Hall, 2008.
  • Kaplan Publishing, ACCA Paper F5 Performance Management, December 2009 &June 2010 Edition, Kaplan Publishing.
  • Pauline Weetman, Financial & Management Accounting: An introduction, 4th Edition, FT Prentice Hall, 2006.
Planned learning activities and teaching methods

The taught part of course is delivered to the students by means of lectures, conducted with the help of computer presentations. Lecture notes and presentations are available through the web for students to use in combination with the textbooks. Lectures are supplemented with class exercises carried out in class and via homework.

Assessment methods and criteria
Final Exam60%
Language of instructionEnglish
Work placement(s)NO

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