The aim of the examination is to test the candidate’s knowledge and understanding of
- The purposes of cost accounting, the terminology used and the methods by which the costs of operations, processes, departments, products or services are ascertained using the absorption principle
- Elementary aspects of the marginal principle, optional technique and costing systems
|
SYLLABUS CONTENT
|
|
1.0 General
- Cost units; Cost centres; Cost classification into direct or indirect by function or into cost behaviour categories; Elements of costs; Coding; Form Design; Accounting entries
2.0 Costing For Materials
- Ordering; Receiving; Inspection; Storage and issue procedures. Documents involved in stores routine; Perpetual inventory records; Continuous stock taking and treatment of discrepancies; Method of pricing stores issues and effect on reported profits; Maximum stock, minimum stock and re-order levels
3.0 Costing For Labor
- Time and output records; Methods of remuneration and effect on unit cost; Payroll preparation and wages analysis; Treatment of overtime premium, shift premium and idle time
4.0 Costing for Overhead
- Main sources of total overheads, including depreciation, using a fixed asset registers: Use of production and service cost centres; Allocation: Apportionment; Re-apportionment of service cost centres. Basis for and calculation of absorption rtes; Use of absorption rates; Under or over absorption
5.0 Costing Methods for
- Specific orders – Job, batch and contract
- Continuous process- Normal loss. Scrap Value. Abnormal loss or gain; Work in progress; Equivalent units; Joint products & By products
- Provision of services- Service organizations, both internal and external
6.0 Marginal Costing
- Elementary knowledge of the use of contribution for decisions and the effect on stock values and reported profits
7.0 Optional Techniques
- Elementary knowledge of budgeting and standard costing restricted to prime cost variance analysis
8.0 Costing Systems
- Simple examples of integrated accounting systems. Basic understanding of uniform costing
|
|
EXAMINATION REQUIREMENTS:
- A 2 ½- hour examination. 5 questions are to be answered from a choice of 6
Graph paper are provided. Calculators ( no printout, silent, cordless no word display facilities are allowed.
|
The aim of the examination is to test the candidate’s knowledge and understanding of the basic principles involved in short-term cost behaviour, short and long-term decision making and short-term profit control, cash management and product cost ascertainment
|
SYLLABUS CONTENT
|
|
1.0 Short-term Cost Behaviour
- Effective assessment of the cost effects of the various alternatives open to management
- Fixed, variable and semi-variable costs.
- Segregation of semi-variable costs into fixed and variable components
2.0 Short-term Decision Making
· Basic principles upon which short-term decision should be based
· Marginal costs,
· Contribution Theory.
· Cost Volume Profit Analysis
· Preparation of break even charts-their value and limitations
· Differential costing
· Cash flow statements
· Key or limiting factors
3.0 Short-term Profit Control
- Appreciation of the principles and comprehension of control documents
- Principles of profit control; Preparation of standard costs and budgets; Variance analysis and the reporting of variances; Control standards; Control diagnosis.
4.0 Cash Management
· The effects of management decisions on the cash flows
· Concept of working capital; The effect of sales expansion on working capital; Product/Project life cycles; Cash Budgeting.
5.0 Long-term Decison Making and Control
- Appreciation of useful techniques and the production of data
- Long term financial planning; Discounted cash flow techniques ; Relevant costs
6.0 Product Cost Ascertainment
- The methods by which the costs of operations, processes, departments or products are ascertained
- Problem of charging overheads to products; Overhead analysis technique; Overhead absorption techniques ; Overhead under and over absorption
7.0 Transfer Pricing and Performance Evaluation
- Its importance in decentralized organization
- Reasons for transfer pricing and an introduction to the problems it may create within highly interdependent structures
8.0 Information Processing
- An appreciation of system design
- The influence of information technology upon management accounting systems; The collection, recording and presentation of information for decision making
|
|
EXAMINATION REQUIREMENTS
- A three hour examination 5 questions to be answered from a choice of 6.
Graph paper will be provided and calculators can be used ( no printout, no word display facilities, silent and cordless)
|
