Ch 1 · Introduction to Cost & Management Accounting

5 concept points · 3 formulas · 4 exam-critical points.

📘 Core concepts

• 1Cost: expenditure attributable to a cost object.
• 2Classifications: by nature (material, labour, expenses), by behaviour (fixed, variable, semi-variable), by function.
• 3Direct vs Indirect costs based on traceability.
• 4Cost centre (cost), profit centre (revenue & cost), investment centre (return on investment).
• 5Cost units differ by industry (per tonne, per ton-km, per bed-day, etc.).