Costing and Budgeting
- Credits: 5
- Ending: Examination
- Range: 2P + 2C
- Semester: winter
- Year: 3
- Faculty of Business Economics with seat in Košice
Teachers
Included in study programs
Teaching results
The aim of the course is to prepare students for independent practical application of knowledge in the field of costing and budgeting as a practical tool of cost management.
Knowledge: Theoretical and practical knowledge related to costing and budgeting of the company. Knowledge of managerial accounting, classification of costs from the point of view of managerial accounting, costing system, methods of cost calculation, costing formulas, types and forms of budgets, methods of budgeting and control of budget execution.
Skills: Skills of creating costing formulas, practical application of individual methods of costing, skill of practical budgeting and control of budget execution.
Competences: Ability to classify costs, ability to apply various methods of costing, ability to compile budgets and control their implementation.
Indicative content
Lecturers:
1. Managerial accounting. Costs as a basic concept of managerial accounting.
2. Cost classification.
3. Dependence of costs on the volume of products and services.
4. Cost management and its relation to managerial accounting. Historical development of cost management.
5. Costing system. Types and methods of costing. Cost allocation.
6. Costing formulas. Structure of a typical costing formula. Content of individual items of the costing formula. Types of costing formulas.
7. Costing methods. Methods of costing in joint production. Costing methods in non-joint productions.
8. Standard costing. Analysis of deviations.
9. Process costing. Activity Based Costing.
10. Target costing. Life cycle costing.
11. Budgeting and business budgets. Budget system.
12. Types of budgets and budgeting methods.
13. Forms of budgets, factors influencing the choice of budget, control of budget execution.
Seminars:
1. Introduction to the course, conditions for work on seminars, conditions for obtaining preliminary assessment and passing the exam. Practicing basic concepts in the field of costs.
2. Cost classification. Classification of costs by elements of cost.
3. Costing methods in non-joint productions (Part 1): Costing by simple division. Costing by equivalent numbers.
4. Costing methods in non-joint productions (Part 2): Costing by overhead absorption rate. Specific order costing.
5. Preliminary assessment no. 1: written examination.
6. Methods of costing in joint production: Costing by subtraction. Costing by budgeting. Combination of costing by budgeting and subtraction.
7. Standard costing. Analysis of deviations.
8. Preliminary and final costing.
9. Marginal costing. Break-even point.
10. Process costing. Activity Based Costing.
11. Preliminary assessment no. 2: written examination.
12. Budgeting and business budgets. Control of budget execution.
13. Course summary. Corrective preliminary assessment.
Support literature
Elementary literature:
1. TÓTH, M. – ŠAGÁTOVÁ, S.: Nákladový controlling. Bratislava : Wolters Kluwer, 2020. ISBN 978-80-7598-906-2.
2. KOSTKOVÁ, A. – LAJOŠ, B.: Kalkulácie a rozpočty podniku. Bratislava : Vydavateľstvo EKONÓM, 2011. ISBN 978-80-225-3240-2.
Supplementary literature:
3. KRÁL, B. a kol.: Manažerské účetnictví. Praha : Management Press, 2019. ISBN 978-80-726-1568-1.
4. DRURY, C., TAYLES, M.: Management and Cost Accounting. 11th Edition. Cengage Learning EMEA, 2021. ISBN 978-1473773615.
5. KAPLAN, R. S., ATKINSON, A. A.: Advanced Management Accounting: Pearson New International Edition. Pearson Education Limited, 2013. ISBN 978-1292026596.
Syllabus
Lecturers: 1. Managerial accounting. Costs as a basic concept of managerial accounting. 2. Cost classification. 3. Dependence of costs on the volume of products and services. 4. Cost management and its relation to managerial accounting. Historical development of cost management. 5. Costing system. Types and methods of costing. Cost allocation. 6. Costing formulas. Structure of a typical costing formula. Content of individual items of the costing formula. Types of costing formulas. 7. Costing methods. Methods of costing in joint production. Costing methods in non-joint productions. 8. Standard costing. Analysis of deviations. 9. Process costing. Activity Based Costing. 10. Target costing. Life cycle costing. 11. Budgeting and business budgets. Budget system. 12. Types of budgets and budgeting methods. 13. Forms of budgets, factors influencing the choice of budget, control of budget execution. Seminars: 1. Introduction to the course, conditions for work on seminars, conditions for obtaining preliminary assessment and passing the exam. Practicing basic concepts in the field of costs. 2. Cost classification. Classification of costs by elements of cost. 3. Costing methods in non-joint productions (Part 1): Costing by simple division. Costing by equivalent numbers. 4. Costing methods in non-joint productions (Part 2): Costing by overhead absorption rate. Specific order costing. 5. Preliminary assessment no. 1: written examination. 6. Methods of costing in joint production: Costing by subtraction. Costing by budgeting. Combination of costing by budgeting and subtraction. 7. Standard costing. Analysis of deviations. 8. Preliminary and final costing. 9. Marginal costing. Break-even point. 10. Process costing. Activity Based Costing. 11. Preliminary assessment no. 2: written examination. 12. Budgeting and business budgets. Control of budget execution. 13. Course summary. Corrective preliminary assessment.
Requirements to complete the course
• preliminary assessment - written examinations
• written exam
Preliminary assessment no. 1: written examination 20%
Preliminary assessment no. 2: written examination 20%
Final assessment: written exam 60%
Student workload
130 hours in total, of which:
• 26 hours of participation in lectures
• 26 hours participation in active forms of study (seminars)
• 13 hours preparation for active forms of study (seminars)
• 26 hours preparation for preliminary assessments
• 39 hours preparation for final assessment
Language whose command is required to complete the course
Slovak
Date of approval: 01.03.2023
Date of the latest change: 16.09.2022