Introduction to Cost and Management Accounting

Fill-in-the-blank practice flashcards covering the nature, scope, and role of Cost and Management Accounting based on the lecture transcript.

Cost Accounting involves collecting, recording, classifying, and analysing costs involved in __________ or providing services.

producing goods

Cost Accounting determines the cost of __________ and helps businesses make decisions.

production

The scope of Cost Accounting includes classifying costs into categories such as direct/indirect costs and __________ costs.

fixed/variable

Cost Accounting includes calculating the cost per __________.

unit

Management Accounting provides financial and __________ information to managers to help them plan, control operations and make business decisions.

non-financial

The scope of Management Accounting includes budgeting and __________.

forecasting

Management Accounting scope includes making decisions about pricing, production, and __________ allocation.

resource

In manufacturing industries, Cost Accounting helps businesses determine the cost of materials, labour, and __________.

overheads

Cost Accounting helps manufacturing businesses set appropriate __________ prices.

selling

A furniture company can use Cost Accounting to determine how much it costs to produce one chair, including wood, labour, and __________ expenses.

factory

In service industries, Cost Accounting helps businesses determine the cost of providing __________.

services

In service industries, Cost Accounting can be used to calculate the cost of activities such as labour, transportation, equipment, and other __________ expenses.

operating

A hotel can use Cost Accounting to determine the cost of providing a room to a customer, including housekeeping, utilities, and __________ costs.

staff

Planning in Management Accounting helps managers set goals and determine how __________ should be used.

resources

Budgeting in Management Accounting helps businesses prepare budgets and estimate future __________ and expenses.

income

Decision-making in Management Accounting provides information that helps managers choose between different __________.

alternatives

Cost control helps managers identify unnecessary or __________ costs and find ways to reduce them.

excessive

Performance evaluation allows managers to compare actual results with __________ results and identify areas that need improvement.

planned

By helping management control costs and make better decisions, Management Accounting can help a business increase its __________.

profits

Resource allocation helps managers decide how limited resources such as money, labour, and __________ should be used.

materials