Paper 8 :
About Cost Accounting
Cost Accounting is the process of recording, classifying, summarising and analysing all costs incurred in performing a process or product. This information forms the basis for many strategic decisions.
As a CMA, this is one of your core competency areas. So, you need to understand these concepts in detail. Acting as an advisor to businesses, you need to know how to help them control their costs. You need to understand the relationship among Cost Accounting, Management Accounting and Financial Accounting.
The topics covered in Cost Accounting at the CMA Intermediate level
- You are given a basic introduction to cost accounting such as cost ascertainment, cost accounting standards and cost bookkeeping
- You will find out the various methods of costing including job costing, batch costing, contract costing, process costing and operating costing
- You will learn at a basic level, cost accounting techniques including marginal costing, standard costing and variance analysis, budget and budgetary control
The best approach to study Cost Accounting
- Gain a thorough understanding of the concepts. Costing is nothing but common sense
- Concepts in the paper are not that difficult to understand, so students underestimate the difficulty. Do not fall into this trap. Study it well and thoroughly
- Sometimes questions in the exam are wordy and maybe difficult to understand. If you have a thorough grounding in your basics, you should do well. Go over past exam papers to get an idea of how questions are phrased