NATIONAL OPEN UNIVERSITY OF NIGERIA
14-16 AHMADU BELLO WAY, VICTORIA ISLAND LAGOS
SCHOOL OF MANAGEMENT SCIENCES
MARCH/APRIL 2015 EXAMINATION
Course Code: ACC305 Credit Unit: 3
Course Title: COST ACCOUNTING
Time Allowed: 2 ½ HRS
Instructions: 1. Attempt question Number one (1) and any other three (3).
- Question number 1 is compulsory and carries 25marks, while the other questions carries 15marks each
- Present all points in a coherent and orderly manner
QUESTION 1
Discuss any five methods of ascertaining Actual Cost (25marks)
QUESTION 2
What are the Cost Accounting Techniques which may be adopted for special purposes of control and policy? (15marks)
QUESTION 3
(a) What is the meaning of Cost Accounting? (5marks)
(b) Explain the essential elements of Effective Cost Accounting Information
(10marks)
QUESTION 4
Give brief discussion of the following terms with example:
- Direct material
- Direct wages
- Direct Expenditure
- Production overhead
- Administrative overhead
- Selling overhead
- Distribution overhead(15marks)
QUESTION 5
The materials analyst has forecast the following data in respect of material MS6:
Maximum consumption of material per week: 400 units
Normal consumption of material per week: 300 units
Minimum consumption of material per week: 200 units
Reorder quantity: 2,000 units
Reorder period: 4-6 weeks
Use the above figures to calculate each of the levels:
- a) Reorder level
- b) Minimum stock level
- c) Maximum stock level
- d) Average stock level (15marks)
QUESTION 6
Discuss three methods of depreciation that are most frequently encountered. (15marks)
