An Overview of Cost & Management Accounting
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Accounting and Financial Management for Bankers — JAIIB.
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Free sample — 8 of 87 rapid-fire Q&A cards.
What gap does Cost & Management Accounting fill that Financial Accounting cannot?
Financial Accounting answers 'How did we perform?' Management Accounting answers 'What should we do next?'
Name three structural limitations of Financial Accounting for internal decision-making.
Aggregation (no product-level profit), Historical lens (post-facto), Cost-control blindness (expenses by nature, not function).
What is the primary difference between Cost Accounting and Cost Accountancy?
Cost Accounting = system of procedures; Cost Accountancy = the profession/discipline of cost accountants.
State the four CIMA-aligned objectives of Cost Accounting in sequence.
Record & classify → Determine cost per unit → Compare actual vs standard → Supply timely info for decisions.
What are the three elements of production cost?
Materials, Labour, Expenses. Each split into Direct and Indirect.
Define the three behavioural cost categories based on output changes.
Fixed (unchanged), Variable (proportional to output), Semi-Variable (mixed).
What is a Cost Centre per CIMA definition?
Production/service location, function or equipment whose costs may be attributed to cost units.
What is a Cost Unit per CIMA definition?
Unit of product/service in relation to which costs are ascertained. Depends on nature of output.
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