CPA Section 2 – Management Accounting (KASNEB)

Categories: Accountancy, CPA Section 2

About Course

This unit is intended to equip the candidate with knowledge, skills and attitudes that will enable him/her to apply management accounting principles and concepts in business.

A candidate who passes this paper should be able to:
 Estimate the cost of goods and services
 Analyse product costs for manufacturing and non-manufacturing activities
 Prepare marginal and absorption cost statements
 Analyse an organisation’s activities through budgetary control process
 Analyse variances for decision making
 Use computers in cost management.

Course Content

Nature and Purpose of Cost and Management Accounting
Nature and purpose of cost and management accounting

The nature of cost accounting and costing terms
The role of cost accounting in management
The purposes of cost accounting information
Scope of cost accounting
Meaning of management accounting, scope, limitations, applications
Relationship between cost, financial and management accounting
Selection of an ideal cost accounting system

Cost Classification
Cost classification

Cost Estimation
Cost estimation

Accounting, for Material, Labour and Overheads
Accounting, for material, labour and overheads

Cost Bookkeeping
Cost bookkeeping

Costing Methods
Costing methods

Marginal and absorption costing
Marginal and absorption costing

Activity Based Costing
Activity based costing

Budgeting and Budgetary Control
Budgeting and budgetary control

Standard Costing
Standard costing

Cost Management
Cost management

Emerging Issues and Trends
Emerging issues and trends