LCCI Cost Accounting Second Level(2016)-Series 2,3 & 4

May 15th, 2008 / No comments yet

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.

LCCI Management Accounting Third Level(3023)-Series 2,3 & 4

May 15th, 2008 / No comments yet

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)

 

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