Costing and Budgeting Exploration Paper

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BTEC EDEXCEL HND DIPLOMA IN OPERATION MANAGEMENT & HUMAN RESOURCES

MANAGING ACCOUNTING: COSTING AND BUDGETING

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Amaya Gamage

BM/C/43/32

SUBMITTED TO: Mr. Anuruddha Yapa

35. 07. 2012

Acknowledgement

I would really prefer to express my own sincere honor to those who have helped me to finish this project on Costing and Budgeting. I have used a lot of effort in finishing this kind of assignment efficiently. I exhibit my heartfelt gratitude especially to our lecturer of Administration Accounting: Charging and Cost management module Mr. Anuruddha Yapa who offered me wealth of information about businesses plus the environment by which it works, spending his valuable time with us, which will helped me to complete the assignment efficiently. My greatest sense of gratitude is out to my local freinds and relatives who were with me at night helping in lots of ways to make this kind of a success. I would also like to thank ICBT Campus intended for conducting a HND system for Business Supervision.

Executive Brief summary

Contents

Introduction5

Learning Result 16

1 . 0Different Types of Costs that businesses bear6

1 . 1 Several types of Costing Methods6

Learning Outcome 39

1 . Purpose of Budgeting9

1 . 1Advantages of Budgeting9

1 . 2Disadvantages of budgeting9

2 . Fixed Budgets9

2 . 1Flexible Budgets9

2 . 2Zero- base Budgets10

2 . Learning Outcome 2& 411

Conclusion12

References13

List of Tables

Stand 1: FIFO Store Ledger8

Table two: LIFO Store Ledger8

Table 3: Receivables10

Table some: Payables10

Table 5: Money Budget11

Intro

Management accounting costing and budgeting is looking at the price information, both present and future, of businesses and gather, compile, examine and process cost data into info which allows for business managers. Cost accounting is the establishment of the costs, standard costs and actual costs of operations, procedure, activities or products; and the analysis of variances, earnings, or the cultural use of cash. Through expense accounting info regarding financial aspects could be gathered, employing information planning, controlling and short and long term decision making can be done. By information supplied through costing systems managers can use this as a element in pricing decisions, production planning, cost control, wages of control, materials cost control. Budget is actually a quantitative affirmation, for a determine period of time which may include organized revenues, bills, assets, financial obligations and cash flow. Budgets are ready a business as a whole or because departments in advance of the period. Budgeting helps to control, motivate, strategy, coordinate, communicate and sort out authority and responsibility.

Learning Outcome 1

1 . 0 Different Types of Costs that organizations bear

1 ) 1 Different Types of Costing Strategies

* Job Costing

In job priced at costs are determined for every single job. Details is accumulated for each job for pricing functions. Such as merchandise designing, screening samples, progress a product and consultancy.

* Set Costing

In case the units produced in a set are similar in nature and style batch priced at is used treating each set as a job or individual unit. Sectors like bakeries and medical stores use group costing.

5. Process Priced at

Process costing is used intended for the products that go through several processes. Result of each method is cared for as a completed good and consumed as a raw material for the next process so it is examined separately. To have the cost at each stage of production process costing is used in these sorts of industries just like Oil improving, Paper producing, Drug developing. Process costing contains, 5. Clearly defined process cost Middle and the deposition of all expense by the price center. 2. Maintain of accurate data of devices and component units produced and cost incurred by simply each method. * Averaging of the TC of each procedure over...

Referrals: * School notes 2012

* (no Date) About: Methods of priced at and types of priced at. (Online) Sold at: < http://iamsam.hubpages.com/hub/Methods-of-Costing > [Assessed 03rd October 2012]

* Accounting Equipment. (no date) About: Just what flexible budget (online) Offered by: [Assessed 3rd March 2012]

* tutor2u. (no date) About: actually zero based spending budget (online) Sold at: [Assessed 3rd August 2012]

*

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