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
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SYLLABUS CONTENT
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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
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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.
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