ACC202 Cost and Management Accounting
Cost and Management Accounting notes
8 chapter notes, in syllabus order. Each starts with the key points.
Unit 1
Cost & Management Accounting: Definitions, Scope, and ImportanceUnit 1 of Cost and Management Accounting introduces core concepts like cost accounting, management accounting, and their roles in decision-making, planning, and control for businesses—with real-world examples from Nepali firms like eSewa and Daraz.12 min readUnit 2
Cost Concepts & Classification: Types, Behaviors & Decision-MakingUnit 2 of Cost and Management Accounting explores fundamental cost concepts (direct/indirect, fixed/variable), their classifications, behaviors, and how businesses like Daraz or Ncell use them for pricing, budgeting, and profitability analysis. Learn with Nepali examples, t-accounts, and real-world applications.13 min readUnit 3
Material Cost Control · note coming
Unit 4
Labour Cost Control: Wages, Efficiency, Idle Time & OvertimeUnit 4 of Cost and Management Accounting explores how businesses track, analyze, and control labour costs—including wage structures, time management, efficiency metrics, and variance analysis—using real-world Nepali examples like garment factories and NTC’s workforce.5 min readUnit 5
Overhead Allocation & Absorption: Methods, Bases & CycleUnit 5 of Cost and Management Accounting explains how indirect costs (overheads) are allocated to products/services, absorbed into inventory, and treated in the accounting cycle—with Nepali business examples, t-accounts, and real-world applications like Daraz’s warehouse expenses or Ncell’s marketing costs.11 min readUnit 6
Job & Contract Costing: Methods, Examples & Real-World ApplicationsUnit 6 of Cost and Management Accounting covers job costing (tracking costs per unique product/service) and contract costing (long-term project accounting), including definitions, cost accumulation methods, worked examples with Nepali businesses, and comparisons with process costing.10 min readUnit 7
Process Costing: Methods, Weighted Average, FIFO, Equivalent UnitsUnit 7 of Cost and Management Accounting explains how to allocate manufacturing costs across identical units in continuous production (e.g., oil refineries, cement plants, or Nepal’s cement factories like Shivam Cement Ltd.). It covers weighted average vs. FIFO methods, equivalent units, and how to prepare cost stateme14 min readUnit 8
Marginal Costing & CVP Analysis: Break-even, Profit Planning & Decision-MakingUnit 8 of Cost and Management Accounting explores marginal costing (variable vs. fixed costs), cost-volume-profit (CVP) relationships, break-even analysis, and their applications in pricing, production decisions, and profit planning—with real-world examples from Nepali businesses like Daraz and Ncell.12 min readUnit 9
Budgeting & Budgetary Control: Types, Process, Variances & ToolsUnit 9 of Cost and Management Accounting covers the principles of budgeting (master budget, operational budgets, cash budget), budgetary control (standards, variances, responsibility accounting), and real-world applications like eSewa’s expense forecasting and Daraz’s sales projections—with Nepali business examples, va12 min readUnit 10
Standard Costing and Variance Analysis · note coming