MBA Cost Management Pdf Notes – CM Notes | Free Lecture Notes download

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Here you can download the free lecture Notes of MBA Cost Management Pdf Notes – CM Notes pdf materials with multiple file links to download. The MBA Cost Management Notes Pdf – CM pdf Notes book starts with the topics covering Introduction to Cost Management, Classification and Collection,  Marginal Costing, Budgetary Control, Demerits of Traditional Costing, Cost Audit, Reporting to Management etc.

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Cost Management pdf notes – CM Notes of Total Modules 

Please find the cost management pdf free download below

Unit 1 

Link – Unit 1

Unit 2 

Link – Unit 2

Unit 3

Link – Unit 3

Unit 4

Link – Unit 4

Unit 5

Link – Unit 5

Unit 6

Link – Unit 6

Unit 7 

Link –  Unit 7

Complete Notes

Link Complete Notes


Cost Management Notes Pdf – CM pdf Notes

Module – 1

Introduction to Cost Management,Cost Accounting to Cost Management, Elements of costs ,classification of costs,Methods of costing, Cost Management Tools , A Strategic View to Cost Management ,Preparation of a Cost Sheet.

Module – 2

Overheads, Classification and Collection, Difference between Cost Allocation and Cost Apportionment, (Full-fledged Problems on Primary and secondary distribution, Simultaneous equations, Absorption of overhead, Theory on under and Over absorption of Overhead).

Module – 3

Marginal Costing – Nature and Scope – Applications – Break even charts and Point, Decision Making (all types with full problems) Differential Cost Analysis, Advantages and Disadvantages of Marginal Costing.

Module – 4

Budgetary Control – Objectives of Budgetary control, Functional Budgets, Master Budgets, Key Factor Problems on Production and Flexible Budgets.Standard Costing – Comparison with Budgetary Control, analysis of variances, simple problems on Material and Labour Variances Only.

Module – 5

Demerits of Traditional Costing, Activity Based Costing, Cost Drivers, Cost Analysis under ABC (Unit level, Batch level and Product Sustaining Activities), Benefits and weaknesses of ABC, Simple Problems under ABC.

Module – 6

Cost Audit – Objectives, Advantages, Areas and Scope of Cost Audit, Cost Audit in India – Practical – Read the contents of the report of Cost Audit and the annexure to the Cost Audit Report.Management Audit – Aims and the objectives, Scope of Management Audit.

Module – 7

Reporting to Management – Purpose of reporting – Requisites of a good report, Classifications of Report, Segment reporting, Applicability of Accounting Standard 17, Objectives, Users of Segment reporting. Cost Reduction, and Cost Control, Target Costing – its Principles, Balanced Scorecard as a performance measure – Features, Purpose, Reasons for use of Balanced Scorecard.

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Frequently Asked Question

Q1: What is COST?

A1: There are different definition for the word meaning of Cost. Below mentioned are some of the definition of cost.

  • price paid for something.
  • amount of resources utilised for something which must be measured in terms of money
  • amount of actual or notional expenditure attributable to a given thing
Costing is the techniques and processes of ascertaining cost (CIMA, London). In simple, it is the actual process and the different methods used involved in cost finding.
Q2: What are the techniques of costing?
The technique of costing involves two fundamental step namely:
a. Collection and classification of expenditure according to the cost elements and,
b. Allocation and apportionment of the expenditure to the cost centers or cost units.
Q3: What is Cost Accounting?
Cost Accounting deals with cost data collection, analysis of relevance for interpreting and interpreting the collected data.  It is the process of accounting for costs from the point at which the expenditure is committed to the establishment of its ultimate relationship with cost units and cost centres (CIMA).
Q4: What is the Cost management?
A4: There are different definition of Cost management
– the process of planning, controlling the budget of any business.
– a process that allows a business to predict possible expenditures to help reduce the chance of going over budget
– the process of effectively and efficiently planning and managing the costs involved in a business.
It is considered as one of the most challenging tasks. It involves budgetary activities such as collecting, analyzing, evaluating and reporting cost statistics. A company‘s overall budgeting can be brought under control, by implementing an effective cost management system, .
Q5: What are the aims of cost management?
A5: The cost management aims:
1.To develop a system such that the product costs / service costs can be accurately calculated.
2. To assess the overall performance of a product through its life cycle.
3. To find out the process of linking the various activities in a logical and rational manner so that they can be improved upon.
4. To control the costs at every stage as much as possible.
5. To evaluate the measures to be introduced in the process of controlling the costs.
6. To link all the activities of the organization to the basic management objectives.
7. To measure the variances form the actually planned goals.
8. To reset the activities towards the organizational goals.
Q6: What are the Elements of costs?
A6: Basic cost elements are:
1. Raw materials
2. Labor
3.Expenses /overhead Material (Material is a very important part of business)
    o Direct material/Indirect material Labor
    o Direct labor/Indirect labor Overhead (Variable/Fixed)
    o Production or works overheads
    o Administration overheads
    o Selling overheads

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