Basic Costing

Homework

Recap

Basic Costing

Lesson 1 Chapter 1- Introduction to basic costing systems

ObjectivesIdentify sources of income and expenditure. Identify the 3 types of industry and explain

what they are.Analyse the advantages and disadvantages of

computerised recording versus a manual system.

Explain the purpose and define the key characteristics of financial accounting.

Explain the purpose and define the key characteristics of management accounting including how comparison can be made.

Types of BusinessSole Trader

Partnership

Limited Company

Types of business transactions

Types of Transactions

Cash / Credit

Capital / Revenue

Define the following types of Industry

Manufacturing

Retail

Service

Accounting Record Systems

or

What are the Advantages & Disadvantages?

Accounting Systems

Financial Accounting

Management Accounting

Financial AccountingProduce Financial Statements

Characteristics of Financial Accounting

Using historical data

Produced for outsiders

Outsiders make the rules

Must be accurate

Role of Management Accounts

Decision making - Short, medium and long term.

Planning – Short term plans – Budgets

Control – Checking decisions are correct.

Difference between actual and budget variances.

Types of Comparisons

SummaryLots of terminology to remember

Types of transactions

Types of industry

Role of Financial Accounts

Role of Management Accounts