This management accounting course is prepared to help build a strong foundation for students, practitioners and business persons for a career in many industries. It is to provide full knowledge on how to estimate the cost of goods or services, by accurately capturing all expenses of relevant inputs.
It also covers how inventories are ordered, procured, received, stored and then transferred to units or departments in need of them for their activities. The course treats the accounting for labour, i.e. how to determine and calculate remuneration and motivation packages. It will also discuss labour ratios to analyse their output in relation to a target.
Indirect expenditures related to products manufactured will also be lectured on. Here we discuss the allocation of all expenses incurred and how they will be allocated over departments responsible for its build-up and then allocated over a unit of product manufactured in those departments. When there are multiple products produced, it will teach how the absorption should be implemented.
We also move to discuss how all the costs of inventory, labour and overheads come together against the price to lead to profit.
We will be considering two concepts in calculating this, both of which have different impacts on the cost of the product and profit.
