Management Accounting

AAT Level 3

Management Accounting Assists…

• Decision making

• Planning

• Co-ordinating

• Controlling

• Communicating

• Motivating

Management Information

Accurate

Complete

Cost Effective

Understandable

Relevant

Authoritative

Timely

Easy to use

Cost Accounting

Process of calculating and recording costs involved in production and distribution of products and services

Aims of Cost Accounting

1. Determining costs and profits

2. Valuing and controlling inventory

3. Preparing budgets and forecasts

4. Providing information for decision making

5. Controlling costs

Cost Unit

Item the cost relates to, will usually be an item of product

Cost Centre

Anywhere in an organisation where a cost occurs

Types of Centre

• Cost Centre

• Revenue Centre

• Profit Centre

• Investment Centre