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This is an accounting process that determines a company’s cost by assessing its inputs and fixed expense. Cost accounting is usually used to allocate the company’s resources. In ACCA F2, cost accounting will be beneficial in recognizing which expense can be reduced or eliminated. It can also be used in determining the cost by its behaviour, classification and purpose.Knowledge in cost accounting will enable a person to describe different accounting procedures like ordering and receiving inventory and help determine direct and indirect labor cost and explains the different treatment of overhead expense. The allocation of overhead is probably the most exciting yet challenging part of costing; this includes reapportioning the total cost to different departments using different factors. A manufacturing company usually uses cost accounting to determine their cost per unit that will ultimately be the base for the sales price. Knowledge in cost accounting will aid the management by providing them with costing feedback. Business mathematics Business mathematics provides the management with concepts that are based on mathematical science. Basic business math is essential in ACCA F2; it provides managers with forecast and predicts trends based on past events and transactions. Business mathematics also solves business problems by translating them into the language of mathematics and incorporating mathematical concepts to draw out a solution. Mathematics in business usually relies on basic concepts and principles that are much easier to understand. Learning business math will enable a person to think in abstract terms. Computer spreadsheets Computer spreadsheets are essential to management accounting since some activities are repetitive and it will take a longer time to compute them all manually. Having financial reports in a computer spreadsheet program will make it more flexible to corrections and since most computers run by functions, the computer will automatically recompute a new data based on the inputs provided. Use of ACCA F2 The knowledge in ACCA F2 or management accounting will enable the use of financial tools to come up with information mainly for the use of managers and employees. This internal data is used for planning, controlling and making effective decisions. The data in ACCA F2 consists of numbers, letters, raw facts, symbols, transactions and events. This data is recorded but not translated into proper form. Management accounting can also be viewed as a mechanism for control. Through management accounting, the overall status of the business is reflected and this will enable the top management to implement changes in order to reach the organizational goal more effectively. If you are looking for information on ACCA F2 click on the link. Or visit http://www.the-acca.com/acca/acca-f2.
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