Learning Objectives

The Cost and Revenues paper encompasses two units. These are Principles of Costing (Knowledge) and Providing Cost and Revenue Information (Skills).

Principles of Costing (knowledge) is about understanding the fundamental principles that underpin costing methodology and techniques. You will develop an understanding of how costs are handled in organisations, and why different organisations treat costs in different ways. You will be able to recognise different approaches to cost accounting and make informed and reasoned judgements to guide management.

Providing Cost and Revenue Information(skills) is about applying the principles of costing. You will learn to identify why cost accounting is an important tool to an organisation, and be able to recognise different approaches and make informed reasoned judgements to advise management on the most effective costing techniques to aid decision making.

Learning Outcomes

Principles of costing

• Demonstrate an understanding of the role of costing within the organisation.
• Advise on the most appropriate costing methods to use within an organisation.
• Understand the principles of using costing as a decision-making tool.

Providing cost & revenue information

• Record and analyse information relating to costs.
• Apportion costs according to organisational requirements.
• Correctly identify any significant deviations and report these to management.