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| Section | Objectives |
|---|---|
| Cost Accounting Fundamentals | - Introduction to management accounting - Role and purpose of cost accounting |
| Costing Methods | - Overhead allocation and absorption costing - Process costing basics - Job costing and batch costing |
| Budgeting and Planning | - Introduction to budgeting - Basic forecasting techniques |
| Cost Classification and Behaviour | - Fixed, variable, and semi-variable costs - Cost behaviour patterns and analysis |
Refer to the exhibit.
The following budgetary information is available for a manufacturing company:
A particular cost unit takes 4 machine hours in the machining department and 3 labour hours in each of the assembly and finishing departments.
The overhead cost absorbed per unit is:
Give your answer to 2 decimal places.
Correct Answer:
£18.37
The forecast costs per unit for a new product are as follows:
The company uses marginal cost plus pricing and all products are required to achieve a 40% margin.
What would be the selling price per unit?
Correct Answer: C 🗳️
In an integrated cost and financial accounting system, the accounting entries for the payment of net wages to indirect production workers would be:
Correct Answer: A 🗳️
Refer to the exhibit.
RX Ltd expects to have limited machine time for July, which will result in the following production levels:
It is anticipated that there will be 1,500 units of opening inventory and the company wishes to hold a minimum of 500 units of closing inventory at the end of July.
How many units will be available for sale during July?
Correct Answer:
11003 units
A company can increase its margin of safety by which of the following independent actions?
(a) Increasing sales and production
(b) Raising the selling price per unit
(c) Raising the variable cost per unit
(d) Lowering fixed costs
Correct Answer: A 🗳️
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