Describe the organization of a purchasing department. Organization in the Purchasing Department In each industry and in different works within an industry the detailed organization will vary according to particular conditions and ideas, but the general procedure and principles outlined …
The Methods of Cost Accounting 1. Methods of Ascertaining Actual costs From the two types of cost accounting methods, eight methods of ascertaining actual cost may be identified. These methods have emerged because peculiarities of certain kinds of production have …
What is the prime purpose of a cost statement, and what rules should be borne in mind in its preparation? The prime purpose of a cost statement is to inform management, quickly and clearly of events upon which they may …
What do you understand by the term “Integrated accounting” and what advantages does it present compared to other systems of cost and financial accounting? Integrated accounting means that the cost accounting system is integrated with the normal financial accounts. The …
Explain the classification of costs The Analysis and Classification of Expenditure The main classifications of business expenditure are: Materials Wages Expenses However there are, two broad divisions to be noted, namely: Direct Expenditure and Indirect Expenditure Direct materials Direct wages …
Explain the importance of contribution in Decision Making The Importance of Contribution in Decision Making Contribution can be defined as the difference between sales and variable cost of the sales. The more the number of units sold, the greater the …
Describe the relationship between contribution and profit Relationship Between Contribution and Profit Profit = contribution – fixed cost Contribution = sales – variable cost Contribution = profit + fixed To Get Your ACC306 (ACC305) COST ACCOUNTING QUESTIONS AND ANSWERS …
Explain the nature of cost classification Cost Classification, Methods and Technique 1. Cost Classification The relevant or irrelevance of the cost to the decision on Direct or Indirect 2. Costing Method 3. Cost Technique Standard costing Marginal costing 4. Fixed …
Discuss the essential elements of effective cost Accounting information Essential Elements of Effective Cost Accounting Information 1. The statement containing the information should have appropriate heading so that the management can know at a glance what the statement is all …
Distinguish between cost accounting and financial accounting 1. Information gathering on Financial Accounting is on what happened (historical) rather than what is going to happen. While Cost Accounting Information gathering is both historical basis and future basis 2. 3. 4. …
State the purposes of Cost Accounting The primary emphasis of Cost Accounting is segment reporting. This means that the costs and sales of individual products or parts of the business are prepared for management in order to know the profitability …
Define Cost Accounting Cost accounting is the process of collecting, summarizing, analyzing and reporting in monetary terms tailor made information to management showing the costs and benefits of pursuing each alternative course of action open to management. To Get …
