Elements of Costing
The purpose of this unit is to give students a basic introduction to costing. Students will understand the importance of the costing system as a source of information for internal management decision making. This unit covers the nature of cost and how it is used in a costing system. Students will understand the different classifications of cost and how they can be used for internal management decision making. As well as classifying costs, students will code transactions and build up a unit cost for a product or service, using a range of techniques to cost material, labour and overheads. Students will also engage with the budgetary control system by comparing actual costs with budgeted costs and they will determine variances, noting whether they are adverse or favourable.
- Understand the cost recording system within an organisation
- Use cost recording techniques
- Provide information on actual and budgeted costs and income