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Cost Accounting Assignment

   

Added on  2020-04-21

13 Pages1898 Words131 Views
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Running head: COST ACCOUNTING Cost AccountingName of the StudentName of the UniversityAuthors NoteCourse ID
Cost Accounting Assignment_1

COST ACCOUNTING1Table of ContentsCost Accounting Assignment.....................................................................................................2Part A.........................................................................................................................................2Answer to Question 1:................................................................................................................2Definition Cost Accounting Objectives and Classification:......................................................2Answer to question 2: Cost Sheet:.............................................................................................3Answer to question 3:.................................................................................................................3Answer to question 4:.................................................................................................................5ABC Costing:.............................................................................................................................6Answer to question (c):..............................................................................................................7Answer to Problem 2:.................................................................................................................8Answer to question (A):.............................................................................................................8Answer to question (c):..............................................................................................................9Decision Analysis:.....................................................................................................................9Answer to question (a):..............................................................................................................9Answer to question (b):............................................................................................................10Problem 2 (Traditional Costing):.............................................................................................10Answer to question 3: Variance Analysis................................................................................10Reference List:.........................................................................................................................12
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COST ACCOUNTING2Cost Accounting AssignmentPart AAnswer to Question 1:Definition Cost Accounting Objectives and Classification:Answer: Cost accounting can be defined as the procedure of accounting for cost relating toone point at which the expenses are incurred or it is committed to the establishment of theultimate relationship with the cost centre and cost units (Drury 2013). In other words, costaccounting takes into account the activities of preparation of the statistical data,implementation of the cost control methods and ascertainment of the profitability of the workexecuted or planned. Objectives of Cost Accounting are as follows: a.To determine the cost per unit each items of the different products manufactured bythe business b.To determine the probability of each products manufactured and serving as the guidein advising the management in maximising profitability. c.To offer advice to the management in the future expansion of the business andprojected capital projects (Salako and Yusuf 2016). Classification of Cost Accounting are as follows:a.Cost accounting can be classified based on the nature such as material, labour andoverhead b.Cost can be classified based on the degree of traceability such as direct and indirectcost.
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COST ACCOUNTING3c.Cost accounting can be classified based on the relationship with accounting periodsuch as capital expenses and revenue expenses. Answer to question 2: Cost Sheet:Cost Sheet ParticularsAmount ($)Amount ($)Materials ConsumedOpening Stock of Raw Materials 10000Purchase225000Less: Closing Stock 7500Raw Materials Consumed 227500Add: Wages Paid 110000Prime Cost 337500Works OverheadFactory Overhead40500Add: Opening W-I-P5000Less: Closing W-I-P600039500Factory Cost377000Office and Administration OverheadAdministrative Overhead25000Cost of Production 402000Add: Opening Stock of Finished Goods25000427000Less: Closing Stock of Finished Goods22500Cost of Goods Sold 404500Selling and Distribution OverheadSelling and Distribution Overhead Expenses10000Cost of Sales414500Profit (Balancing Figure) 585500Sales 1000000 Answer to question 3:Break-Even AnalysisSelling $ 217.00
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