Introduction
This module unit is intended to equip the trainee with knowledge, skills and attitudes that will enable him/her to ascertain costs and prepare performance reports in a business set up.
General Objectives
At the end of this module unit, the trainee should be able to:
- Apply costing concepts in a business management
- Cost goods and services using various costing methods
- Price goods and services using various pricing methods
- Carry out cost allocation for various overheads
- Apply simple costing techniques as used in modem business set ups
Topic 1: Introduction to Cost Accounting
- Nature of cost accounting
- Importance of cost accounting
- Basic terms used in cost accounting
- Principles of cost accounting
- Distinction between cost accounting and financial accounting
- Characteristics of an effective cost accounting system
- Duties of a cost accountant
Topic 2: Elements of Cost and Cost Behaviour
- Elements of costs of a product
- Cost classification
- Importance of cost information
- Cost statement format
Topic 3: Material Costing
- Stock taking methods
- Control procedures
- Aspects
- Stock valuing methods
- Methods of valuing material issues
- Stores ledger/account format
Topic 4: Labour Costing
- Meaning of labour costs
- Ascertainment of labour costs
- Classification of labour costs
- Methods of calculating labour costs
- Calculation of labour costs using labour costs methods
- Payroll format
Topic 5: Costing for Overheads
- Meaning of overhead
- Overheads expenses
- Distinction between allocation, apportionment and absorption
- Classification of overhead expenses into their respective categories
- Overhead analysis sheet format
- Calculation of overhead absorption rates
Topic 6: Process Costing
- Definition of process costing
- Elements of process costing
- Process account format
- Abnormal loss account format
- Normal loss account format
- Scrap debtor account
- Finished goods stock account
- Work-in-progress calculation
- Statement of equivalent production format
Topic 7: Contract Costing
- Definition of contract costing
- Features of contract costing
- Preparation of contract account
- Preparation of contractee account
Topic 8: Batch Costing
- Definition batch costing
- Procedures for preparation of batch statements
Topic 9: Factory Job Costing
- Nature of factory job costing
- Procedures in factory job costing
- Job cost card layout
- Cost estimates
Topic 10: Service Costing
- Nature of service costing
- Common costs units used in service costing
- Preparation of operations cost statement
Topic 11: Emerging Issues
- Emerging issues in cost accounting
- Challenges posed by emerging issues and trends
- Coping with Challenges posed by emerging issues and trends
Cost accounting notes