ACC202 Cost and Management Accounting
Cost and Management Accounting notes
9 chapter notes, in syllabus order. Each starts with the key points.
Unit 1
Cost & Management Accounting: Definitions, Scope, Techniques & ApplicationsUnit 1 of Cost and Management Accounting introduces the fundamental concepts, objectives, techniques, and differences between cost accounting and financial accounting, along with its applications in decision-making and control.13 min readUnit 2
Cost Concepts & Classifications: Types, Methods & ApplicationsUnit 2 of Cost and Management Accounting explores cost definitions, classifications (direct/indirect, fixed/variable, controllable/uncontrollable), cost behavior analysis, and real-world applications in Nepali businesses like Daraz, Ncell, and local retail shops. Learn how costs are traced, allocated, and controlled wi20 min readUnit 3
Material Cost Control: Inventory, Valuation & EfficiencyUnit 3 of Cost and Management Accounting explores how businesses control material costs through inventory valuation methods, purchasing strategies, and efficiency metrics—critical for optimizing working capital and profitability in Nepali industries like retail (Daraz), manufacturing (Nepal Pharmaceuticals), and constr12 min readUnit 4
Labour Cost Control: Wages, Efficiency, Idle Time & OvertimeUnit 4 of Cost and Management Accounting covers labour cost control techniques, including wage systems, timekeeping, efficiency analysis, idle time, overtime, and labour cost variance. It explains how to classify labour costs, calculate labour efficiency, and apply control measures in real-world business scenarios.15 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 inventories, and treated in financial statements—with real-world examples from Nepali businesses like Daraz and Ncell, and step-by-step calculations in NPR.15 min readUnit 6
Job & Contract Costing: Methods, Systems & Real-World ApplicationsUnit 6 of Cost and Management Accounting explains how to allocate costs to specific jobs or contracts, covering definitions, cost accumulation methods, contract accounting principles, and practical applications in Nepali businesses like construction firms and service providers.13 min readUnit 7
Process Costing · note coming
Unit 8
Marginal Costing & CVP Analysis: Break-even, Profit Planning & Decision ToolsUnit 8 of Cost and Management Accounting explains marginal costing (variable vs. fixed costs), cost-volume-profit (CVP) relationships, break-even analysis, and how businesses like Daraz or Ncell use these tools to set prices, plan profits, and make "make or buy" decisions under uncertainty.14 min readUnit 9
Budgeting & Budgetary Control: Types, Process, Variances & AnalysisUnit 9 of Cost and Management Accounting covers budgeting fundamentals, types of budgets (master, functional, flexible), budgetary control techniques, variance analysis (sales, material, labour), and real-world applications—with Nepali business examples, t-accounts for budgetary entries, and a step-by-step budget prepa9 min readUnit 10
Standard Costing & Variance Analysis: Techniques, Variances & ControlUnit 10 of Cost and Management Accounting explores standard costing systems, variance analysis (material, labor, overhead), and their role in performance evaluation, using real-world Nepali business examples like a Kathmandu retail shop or a Daraz warehouse.8 min read