Award in Elements of Costings

Course Description

This unit gives the learners a basic introduction to costing, introducing knowledge and skills which will be needed for 3 further units, Intermediate Management Accounting, Advanced Management Accounting and Assessing and Evaluating Performance. Learners will understand the importance of the costing system as a source of information for internal management decision-making. In contrast to the more outward perspective of financial accounting, the skills developed in this unit will allow learners to provide information to managers that can be used to assist in internal business planning, decision making and control.

This unit enables learners to distinguish between the three basic elements of costs, namely, material, labour and overheads. Decision-making is facilitated by different classifications systems, particularly, by classifying costs by function, element and nature. A core area within this unit is cost behaviour where learners are presented with different methodologies to distinguish between fixed, variable, semi-variable and stepped costs. Learners are introduced to the different methods of stock valuation (FIFO, LIFO and AVCO) as well as different labour remuneration methods. Most importantly this unit introduces learners to appreciate the way in which actual and budgeted figures may be used to improve managerial decision making.

Learning Outcomes

LO1 Describe the cost recording system within an organisation.

LO2 Use inventory coding and other classification systems within an organisation.

LO3 Use cost behaviour methods to determine the nature of costs.

LO4 Apply recording techniques for the three elements of costs.

LO5 Provide information on actual and budgeted costs and income.

Entry Requirements

Applicants wishing to be considered for this course are to note that for them to benefit from the content covered and successful achievement of this Award, they must possess a very good working knowledge of English (verbal and written) as well possess the necessary foundations in Accounting content.