MBAA-102 Accounting for Managers – Unit 5

MBAA-102 Accounting for Managers – Unit 5

Objectives: to familiarise you with the process of determination of costs, particularly in amanufacturing concern; to explain how the costing techniques are useful in the process of managerial decision-making.

Materials:
The relevant material is available here.

Questions:

1. What do you understand by cost accounting? State its objectives.
2. What do you understand by cost? Explain its different elements.
3. All controllable costs are direct costs; not all direct costs are controllable. Explain with the help of suitable examples.
4. “Fixed costs are variable per unit, while variable costs are fixed per unit”. Comment.
5. How would you differentiate between ‘Direct cost’ and ‘Variable costs’? Give suitable illustrations.