2.      CHARACTERISTICS OF A GOOD COSTING SYSTEM

3.      COST CLASSIFICATION

AND TYPES OF COST

4.      ELEMENTS OF COST

1.2       Functions and importance of Cost

Accounting

1.3       Differences among Cost Accounting,             Management Accounting and                         Financial Accounting.

1.4       Basic Costing terminologies e.g                      Cost Centre, cost unit, unit cost etc.

2.1       Characteristics of a good costing             System e.gsimple, relevant, accurate,

cost-effective etc

2.2       Qualities of good Cost information

e.g brief, timely, comparable,

objective etc. Pounds to Naira

3.1        Basis of cost classification:

Classification of cost according to

behaviour, function, nature etc.

3.2      Types of cost under various

Classifications eg. direct cost,                        indirect cost, period cost,

historical cost, sunk cost, etc.

3.3      Components of cost build-up for

ascertaining the cost/profit of a

product or an activity e.g prime cost, overheads, factory cost, cost of production, cost of sales, total cost etc.

4.1       Explanation of elements of cost i.e

Material, Labour and Expenses.

4.2       Identification and grouping of

elements of cost into direct and

indirect costs e.g direct material cost direct, labour cost, direct expenses and overheads such as factory, administration, selling and distribution, etc.

5.      MATERIALS

6.      LABOUR

7.      OVERHEADS

5.1       Purchasing, receiving, storage and                  their documentation.

5.2       Stocktaking: periodic and continuous             and perpetual inventory system.

5.3       Inventory control – Minimum,

Maximum, Re-order stock levels and

Economic Order Quantity.

(computation of Economic Order

Quantity is not required).

5.4       Pricing of issues and Stock valuation using FIFO, LIFO, Simple Average, Weighted Average, Standard Price methods and their advantages and disadvantages.

6.1          Labour: Meaning and types of labour and labour cost:- skilled and unskilled.

– direct and indirect.

6.2       Methods of labour remuneration:

–  Time rate

–  Piece rate: straight piece rate,

differential piece rate, price rate with guaranteed time rate.

–  incentive schemes: premium bonus, overtime premium.

6.3           Methods of time keeping and concept of idle time.

6.4   Payroll procedures:

-Preparation  of wages analysis sheet

-statutory and non-statutory deductions should be emphasized. (questions will be limited to computation of individual

bonus schemes).

6.5     Labour Turnover: Meaning, causes and

cost.

-Labour turnover ratio.

7.1     Definition of overheads.

7.2     Types of overheads.

7.3     Overhead analysis, collection,

classification, allocation, apportionment and redistribution.

8.  COSTING METHODS

8.1 Job/Batch Costing

8.2  Contract Costing

8.3  Service Costing

8.4  Process Costing

7.4    Overhead Absorption:

– Calculation of Overhead                         Absorption Rates (OAR) e.g                  Direct Wages Percentage, Direct            Material Cost Percentage,                       Machine Hour Rate, Prime

Cost percentage, etc.

7.5   Application of Overhead  Absorption Rates.

7.6   Calculation of under/over absorption of overheads.

7.7   Activity Based Costing:

7.7.1 Meaning, advantages and disadvantages of Activity Based Costing (ABC).

7.7.2 Steps in Activity Based Costing.

7.7.3 Differences between Activity Based Costing and Traditional Product Costing systems.

– limitations of  Traditional Product        Costing System.

7.7.4 Computation of product cost using

Activity Based Costing.

8.1.1    Purpose and circumstances under

which Job/Batch Costing is applied.

8.1.2  Ascertainment of cost of a job or batch.

8.2.1  Meaning and characteristics.

8.2.2  Preparation of Contract Accounts

and Contractee’s Account.

8.3.1   Meaning and objectives of Service         Costing.

8.3.2  Organizations that use Service Costing.

8.3.3   Ascertainment of cost per unit of services rendered.

8.4.1  Explanation and circumstance where

process costing is applied

8.4.2  Terminologies in process costing e.g   joint-products, by-products, scrap, waste, etc.

9.0  COSTING TECHNIQUES

9.1  Marginal and Absorption Costing

9.2  Break Even Analysis

10.0  Budgeting and  Budgetary     Control

11.0  STANDARD COSTING

8.4.3  Preparation of process accounts

including  Normal loss,  Abnormal

Loss and Abnormal gain.

9.1.1  Meaning anddistinction

between Marginal and  Absorption

Costing.

9.1.2  Terminologies used in Marginal and

Absorption Costing – fixed cost, variable

cost, semi-variable costs,  contribution,

period and product costs. etc.

9.1.3  Preparation of Income Statement using

both Marginal and Absorption costing.

9.2.1  Meaning, importance, assumptions and

limitations of break-even analysis.

9.2.2  Computation of break-even points in

units and values from given data

including segregation of costs ( using

high and low method).

9.2.3  Preparation and  interpretation of

break-even charts.

10.1   Explanation of basic terminologies in

Budgeting and Budgetary control.

10.2   Budgeting process and Administration.

10.3   Importance of Budgeting and

Budgetary control.

–  Preparation of budgets will be limited

to cash sales, material usage, material

purchase and production budgets.

10.4   Functional budgets:

–   Sales, production, capital expenditure,

etc.

10.5  Cash budget and master budget.

11.1   Meaning and importance of  Standard

Costing

11.2   Types of Standards.

11.3   Computation of variances:

·         Material (price and usage)

·         Labour (rate and efficiency).

12.0  COST ACCOUNTS

12.1   Interlocking cost accounts.

12.2  Preparation of cost ledger accounts.

12.3  Reconciliation of cost and financial

profits.

12.4  Integrated Cost accounts.

12.5   Preparation of ledger accounts and

income statements.