Foundations of Management Costing

Identify the key differences between financial and management accounting.

Classify costs by nature, behavior (fixed, variable, semi-variable), and function.

Apply the high-low method to separate semi-variable costs into fixed and variable components.

Allocate and apportion production overheads to cost centers using a suitable basis.

Calculate overhead absorption rates (OAR) using various bases (e.g., labor hours, machine hours).

Calculate and explain the causes of under- or over-absorption of overheads.