AAT Level 2 Certificate in Accounting: Principles of Costing
In the Principles of Costing module, you'll be introduced to basic costing principles, helping you understand how costing systems aid in planning, decision-making, and cost control. You will learn to cost materials, labour, and overheads, classify costs for management decisions, and understand cost behaviour at different output levels. You will also gain skills in building unit product costs and using budgetary control systems to compare actual and budgeted costs, identifying variances and their causes.
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Unit overview
- Duration : 3-6 months
The Principles of Costing module teaches basic costing principles, showing how costing systems help in planning and decision-making.
Key topics covered:
Cost recording system: understand the cost recording system within an organisation, collecting and classifying costs, using costing techniques, understanding financial accounting relationships, identifying income and expenditure sources, and recording labour and overheads.
Using cost recording techniques: calculate inventory costs and valuations, labour payments, overhead absorption rates, total and unit costs, and product costs.
Actual and budgeted costs: provide information on actual and budgeted costs and income, compare actual and budgeted costs and income, using exception reporting to highlight significant variances.
Supporting cost calculations: use tools and techniques to support cost calculations, input and format data, and use formulas for cost calculations.
By completing this module, you will learn to cost materials, labour, and overheads, classify costs, understand cost behaviour, build unit costs, and use budgetary control to compare actual and budgeted costs, identifying variances.
Unit details
Completing this AAT Level 2 qualification typically takes 9-12 months.
With 24/7 access to all our resources, you could complete your qualification in as little as 9 months!
There are no formal requirements for this AAT Level 2 qualification, however for the best chance at success on this course and in your career, you’ll need to have a good standard of English and maths.
Our team will be happy to discuss these requirements with you and which study method is right for you – get in touch today!
Study whenever and wherever suits you. On-demand learning offers ultimate flexibility, allowing learners to access high-quality course materials anytime, anywhere.
Ideal for independent learners who want flexible, self-paced learning to fit around their busy lives.
Self-paced learning
Digital materials
Remote accessibility
Self-paced progression
Email tutor support
Flexible access
Exam simulator
Flexible, live sessions accessible from any location.
Experience the flexibility of Live Online learning and engage in real-time, interactive sessions from anywhere. Achieve your goals without the commute!
Ideal for learners who want the flexibility to study from any location
Live interactive sessions online
Dynamic delivery and instant Q&A
Collaborative activities
Engaging real-time learning experience
Structured delivery plan
Networking opportunities (online)
Access to full tutor support (online)
Access to study manual and online resources
Online exam preparation
Get all the benefits of in-person learning, all from the comfort of your home. Great if you need a little more flexibility when it comes to location, but still want the opportunity to interact with other learners.
Ideal for learners who want the classroom experience from the comfort of their home and full tutor support
Live classroom sessions streamed online
Dynamic delivery and instant Q&A
Collaborative activities
Engaging real-time learning experience
Structured delivery plan
Networking opportunities (online)
Online tutor support
Study books and online resources
Access to recorded sessions
Online assignments and exam preparation
Traditional face-to-face classes with experienced tutors. If you like the idea of learning in person, where you bounce around ideas with other learners, then our face-to-face classes are for you. Classes take place every few months at one of our many UK venues.
Ideal for learners who prefer traditional classroom settings
Face-to-face interaction
Convenient locations across the UK
Engaging in real-time learning experience
Structured delivery plan
Networking opportunities
In-person and online tutor support
Study books and online resources
Access to recorded sessions
In-class assignments and exam preparation
Our venues span London, Northampton, Birmingham, Newcastle, Cambridge, Little Compton, and many other locations. If you have a specific place in mind, reach out to us - we’d be happy to discuss options to suit your needs.
In-person learning at our 17th-century Manor. Ideal for an immersive experience.
Unique learning environment
All-inclusive experience
Accommodation and meals
Outstanding facilities
On-site exam centre
1:1 support from your personal advisor
Your personal adviser will work with you throughout your AAT Level 2 Certificate in Accounting. Together you’ll agree on a plan for your programme, develop a study schedule and prepare for your assessments, giving you the best chance of excelling at your course and landing your dream finance role.
24/7 access to all our learning resources
Our Virtual Learning Environment (VLE) gives you 24-hour access to our comprehensive AAT resources, includes webinar recordings, workbooks and activities, to help you through your course and beyond. Perfect for when you want revisit something you’ve just learnt, or revise for your assessments.
Collaborate with other learners
Learn with and from other our experts and other students on our online platform. Share what you have learnt in each unit, reinforcing your understanding while helping you prepare for your assessments and future role.
Get your burning questions answered quickly
Our learning support team are here to help If you have a question about the VLE, CIPD membership, workshops or anything else to do with your course. They are contactable whenever you need them, for as long as you’re on the programme.
Improve your study skills
We’ve introduced a brand new study skills webinars to help you enhance your critical analysis skills, write and communicate better and of course study more effectively. Available 24/7, you can watch these webinars anytime anywhere and on any device.
Pay in full
To pay for your course in full, simply enquire, call us on 016 0867 4224, or complete the booking form and return to rbs.reed@reedbusinessschool.co.uk
We’ll provide you with all the details you need to complete the payment smoothly.
Invoice your employer
If your employer is paying for your course, then we can invoice them directly, so you don’t have to worry about trying to organise the payment yourself. You focus on your studies and we’ll take care of the rest.
Call our team of advisers today to get started!
If you're currently a student or considering AAT with us, you'll find all essential resources here, from course outlines to application forms.
If you have any questions or need further assistance, please don't hesitate to contact our support team. We're here to help ensure your success every step of the way. Remember to return your forms to rbs.reed@reedbusinessschool.co.uk.
Choose your study method
We offer a range of study methods to suit your lifestyle and budget. All our study options include 24-hour access to our Virtual Learning Environment (VLE) where you can study in your own time between classes.
Live Online (Essential)
Real-time, online classes with live tutors. Ideal for learners seeking flexibility.
Scheduled live sessions online
Direct support from tutors
Recorded sessions for later review
Live Online (Enhanced)
Real-time, online classes with live tutors. Ideal for learners seeking flexibility.
Scheduled live sessions online
Direct support from tutors
Recorded sessions for later review
Interactive online learning environment
Online Classroom (Extensive)
Enjoy a classroom experience from home. Ideal for learners seeking live online lessons.
Online classroom experience
Direct support from tutors
Recorded sessions for later review
Interactive online learning environment
Looking to earn this qualification through an apprenticeship?
Our AAT Level 2 Accounts/Finance Assistant Apprenticeship option allows you to develop professional skills while working, with the added benefit of government funding for eligible employers.
It’s a practical, cost-effective way to earn a recognised qualification and gain valuable work experience simultaneously.
Enquire today to find out more!
Why Reed Business School?
When you learn with Reed Business School, you’ll benefit from:
Market-leading pass rates: achieve top results with our expert support and resources.
Proven success: our students consistently perform at the highest level.
Experienced tutors: subject specialists guide you to pass your qualifications.
Proven teaching formula: helping thousands of students succeed.
Flexible delivery options: classroom, online, residential, and self-paced study available.
Convenient study: learn anytime, anywhere on your laptop, phone, or tablet.
Additional study materials: includes revision cards and question bank.
Mock exams & recorded lessons: accessible via Microsoft Teams.
Comprehensive materials: texts, revision cards, and mock exams included.
Highly rated: 4.6/5 on CourseCheck from hundreds of reviews.
50+ years of experience: a trusted provider with proven AAT results.
On-site exam centre: sit exams in a familiar, convenient setting.
Trusted brand: decades of expertise in learning and recruitment.
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Market-leading pass rates
Frequently asked questions
Bookkeeping is the first part of the accounting process and involves recording financial transactions, such as sales, purchases, and expenses, to ensure accurate financial records. Accounting, on the other hand, is a broader process that includes interpreting, analysing, and reporting financial data, preparing financial statements, and ensuring compliance with tax regulations. Both offer rewarding career paths but it’s fair to say that bookkeeping is more administrative, while accounting involves financial strategy and decision-making.
This is an entry-level qualification with two units of study
Introduction to Bookkeeping
Principles of Bookkeeping
It’s ideal for beginners looking to kickstart a career in finance.
AAT Level 2 is equivalent to GCSEs (grades 9-4 or A*-C) in the UK. It is a foundation-level qualification in accounting, covering basic finance and bookkeeping principles. It’s perfect for those who have no experience in accountancy or finance.
AAT Level 2 typically takes 3 to 6 months to complete, depending on study pace and learning method.
Obtaining an AAT Level 2 Certificate in Bookkeeping will give you the fundamental skills that underpin many roles in finance so having this qualification will definitely improve your job prospects! Some employers may prefer experience or professional membership with bodies like AAT (Association of Accounting Technicians). The AAT Level 3 Certificate in Bookkeeping can be used as a route to professional AAT bookkeeping member (AATQB) status.
With a Level 2 bookkeeping certificate, you can expect to find entry-level bookkeeping and finance roles such as finance assistant, accounts clerk or accounts administrator. Many use this level as a stepping stone to further accounting qualifications like AAT Level 3.
No qualification is legally required to be a bookkeeper in the UK. However, as bookkeeping involves managing financial records for businesses and requires a certain level of expertise, it is beneficial to hold a qualification or be qualified by experience. Obtaining a qualification like AAT Level 2 or membership with a professional body like AAT can improve job prospects and credibility.
You can get a bookkeeping certificate by completing a course with a recognised body like AAT (Association of Accounting Technicians). Reed Business School currently offers five AAT qualifications to choose from including Level 2 Certificate in Bookkeeping, Level 3 Certificate in Bookkeeping and three further qualifications in accounting.
Yes, AAT Level 2 qualifies you for entry-level bookkeeping roles, such as trainee bookkeeper, accounts assistant, or finance clerk. For more advanced roles, you will need AAT Level 3 or further experience.
In AAT Level 2 Bookkeeping, there are two exams: Introduction to Bookkeeping and Principles of Bookkeeping Controls.
Useful links
If you're currently a student or considering AAT with us, you'll find find all essential resources here, from course outlines to application forms.
If you have any questions or need further assistance, please don't hesitate to contact our support team. We're here to help ensure your success every step of the way. Remember to return your forms to rbs.reed@reedbusinessschool.co.uk.
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