Relevant costing and accounting concepts
Understand how fundamental accounting concepts—including accruals, reliability, relevance, completeness, comparability, and going concern—directly influence relevant costing decisions. This lesson explores the practical application of these principles when evaluating short-term business decisions, and examines how they interact to shape effective cost management and strategic planning.
This lesson is part of a paid course
Buy the course to unlock every video lesson and the AI Tutor, plus mock exams with feedback on CIMA courses.
Already bought? Sign in
Ask the AI tutor anything about this lesson
It knows every lesson in the course — explanations, clarifications, practice questions.
In this lesson
- 0:00 Introduction to Relevant Costing
- 0:16 Accruals Concept in Relevant Costing
- 1:25 Reliability in Future Costing
- 2:22 Relevance in Decision Making
- 2:45 Completeness and Decision-Specific Costs
- 3:49 Comparability Among Alternatives
- 4:42 Going Concern and Marginal Costing
- 6:30 Conclusion on Accounting Concepts in Relevant Costing
About this lesson
Discover the intricate relationship between relevant costing and key accounting concepts in this enlightening video. Learn how principles like the accruals concept, reliability, relevance, completeness, comparability, and the going concern assumption intersect with relevant costing to impact financial decision-making. This tutorial delves into the limitations and applications of these accounting foundations in the context of relevant costs for future business decisions, providing a nuanced understanding of their role in strategic planning. Ideal for professionals seeking to refine their financial acumen, this video offers valuable insights into optimising cost management and decision processes.
Duration: 7m
- Relevant costing fundamentals
- Accruals concept in decision making
- Reliability and future cost estimation
- Relevance principle in cost selection
- Completeness of decision-specific costs
- Going concern and marginal costing
Transcript
Every lesson comes with a full searchable transcript - included with the course.
Get the P1 Objective Test course
All 104 video lessons, timed mock exams marked instantly with an explanation for every question, an AI Tutor in every lesson and lifetime access.
Already bought? Sign in