In module 1, Objective 1.8, students briefly discussed the professional accounting designations including CGA, CA, CMA, etc. In each of the first two professional designations, elements or classes of management accounting are required. The third, Certified Management Accountants, specialize in management accounting. Now that students are at the senior level of accounting in the secondary school, some time may be spent going over the content of each of the programs and specifically analyzing management, financial, cost accounting and other areas of the programs to make the students aware of the emphasis within each program. It may have been money spent, a service provided, etc.
Cost accounting becomes a base for both financial and management accounting.
Although cost accounting is not referenced directly, some aspects are discussed. Costs are incurred in service firms, merchandising firms, and in manufacturing firms. Manufacturing firms are more complex and are defined as being companies that convert raw materials into finished products. They are concerned with production as well as marketing and administration. We will divide costs into manufacturing costs, non-manufacturing costs, and labour costs.