Costing and Budgeting
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BTEC EDEXCEL HND DIPLOMA IN BUSINESS MANAGEMENT & HUMAN RESOURCES
MANAGEMENT ACCOUNTING: COSTING AND BUDGETING
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Amaya Gamage BM/C/43/32
SUBMITTED TO: Mr. Anuruddha Yapa
30.07.2012
Acknowledgement
I would like to express my sincere gratitude to those who helped me to finish this project on Costing and Budgeting. I have taken a lot of effort in finishing this assignment successfully.
I express my heartfelt gratitude especially to our lecturer of Management Accounting: Costing and Budgeting module Mr. Anuruddha Yapa who gave me wealth of knowledge about businesses and the environment in which it operates, spending his valuable time with us, which helped me to complete the assignment successfully.
My deepest sense of gratitude goes out to my friends and family who were with me helping in many ways to make this a success.
I would also like to thank ICBT Campus for conducting a HND program for Business Management.
Executive Summary
Contents
Introduction 5
Learning Outcome 1 6
1.0 Different Types of Costs that organizations bear 6
1.1 Different Types of Costing Methods 6
Learning Outcome 3 9
1. Purpose of Budgeting 9
1.1 Advantages of Budgeting 9
1.2 Disadvantages of budgeting 9
2. Fixed Budgets 9
2.1 Flexible Budgets 9
2.2 Zero- base Budgets 10
2. Learning Outcome 2&4 11
Conclusion 12
References 13
List of Tables
Table 1: FIFO Store Ledger 8 Table 2: LIFO Store Ledger 8 Table 3: Receivables 10 Table 4: Payables 10 Table 5: Cash Budget 11
Introduction
Management accounting costing and budgeting is looking at the cost information, both present and future, of businesses and gather, compile, evaluate and process cost data into information which helps for business managers.
Cost accounting is the establishment of the budgets, standard costs and actual costs of operations, process, activities or
BTEC EDEXCEL HND DIPLOMA IN BUSINESS MANAGEMENT & HUMAN RESOURCES
MANAGEMENT ACCOUNTING: COSTING AND BUDGETING
-------------------------------------------------
Amaya Gamage BM/C/43/32
SUBMITTED TO: Mr. Anuruddha Yapa
30.07.2012
Acknowledgement
I would like to express my sincere gratitude to those who helped me to finish this project on Costing and Budgeting. I have taken a lot of effort in finishing this assignment successfully.
I express my heartfelt gratitude especially to our lecturer of Management Accounting: Costing and Budgeting module Mr. Anuruddha Yapa who gave me wealth of knowledge about businesses and the environment in which it operates, spending his valuable time with us, which helped me to complete the assignment successfully.
My deepest sense of gratitude goes out to my friends and family who were with me helping in many ways to make this a success.
I would also like to thank ICBT Campus for conducting a HND program for Business Management.
Executive Summary
Contents
Introduction 5
Learning Outcome 1 6
1.0 Different Types of Costs that organizations bear 6
1.1 Different Types of Costing Methods 6
Learning Outcome 3 9
1. Purpose of Budgeting 9
1.1 Advantages of Budgeting 9
1.2 Disadvantages of budgeting 9
2. Fixed Budgets 9
2.1 Flexible Budgets 9
2.2 Zero- base Budgets 10
2. Learning Outcome 2&4 11
Conclusion 12
References 13
List of Tables
Table 1: FIFO Store Ledger 8 Table 2: LIFO Store Ledger 8 Table 3: Receivables 10 Table 4: Payables 10 Table 5: Cash Budget 11
Introduction
Management accounting costing and budgeting is looking at the cost information, both present and future, of businesses and gather, compile, evaluate and process cost data into information which helps for business managers.
Cost accounting is the establishment of the budgets, standard costs and actual costs of operations, process, activities or
References: * Class notes 2012 * (no Date) About: Methods of costing and types of costing. (Online) Available at :< http://iamsam.hubpages.com/hub/Methods-of-Costing > [Assessed 03rd October 2012] * Accounting Tools. (no date) About: What is a flexible budget (online) Available at: <http://www.accountingtools.com/questions-and-answers/what-is-a-flexible-budget.html > [Assessed 3rd October 2012] * tutor2u. (no date) About: zero based budgeting (online) Available at: <http://www.tutor2u.net/business/accounts/zero-based-budgeting.htm > [Assessed 3rd October 2012] *