(SEMESTER 2) Cost and Management Accounting (CMA) Notes

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Cost and Management accounting plays a wide but significant role in many organizations, from small to large; manufacturing to service; private sector to not for profit organizations.

Management accountants provide information that addresses a number of key questions, including:
 
What is the project profit/loss for the next period for the whole organization?
  • What is the profitability of individual product or service lines?
  • What price should we charge for a product/service?
  • What does it cost to make one unit of product or deliver one unit of service?
  • How did actual performance compare with budget and what were the reasons for any divergence?
  • What are the consequences of discontinuing/introducing a product line?
  • The value of inventories of raw materials, work in progress and finished goods;
  • Preparation of budgets, forecasts and other control data;
  • The creation of a reporting system that enables managers to take corrective action where necessary to control costs.

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