Cost Accounting

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Cost Accounting

GRADE 12 - Cost Accounting

GRADE 11 - Cost Accounting

GRADE 10 - Cost Accounting (manufacturing concepts)

Definition and explanation of accounting concepts unique to a manufacturing business

Preparation, presentation, analysis, interpretation and reporting on cost information for manufacturing enterprises:

  • preparation of a production cost statement with notes for manufacturing costs
  • preparation of a short-form Income Statement with notes for administration cost and selling & distribution cost
  • calculation of gross profit on finished goods sold
  • calculation of variable and fixed costs
  • calculation of the cost of a product using variable and fixed costs
  • calculation of cost per unit
  • calculation of contribution per unit
  • calculation of breakeven point
  • calculation of total cost of production.

Integration of ethical issues relating to manufacturing: product quality, product age, raw materials, support for local products, pricefixing, theft, fraud, etc.

Integration of internal audit and control processes relating to manufacturing.

Calculation of the following costs in a manufacturing environment:

  • variable and fixed costs
  • the cost of a product using variable and fixed costs
  • unit cost
  • contribution per unit
  • Breakeven point.

Preparation of ledger accounts of a manufacturing business Balance Sheet Section:

  • raw material stock
  • workinprogress stock
  • finished goods stock
  • consumable stores stock (indirect materials).

Nominal Accounts Section:

  • sales
  • cost of sales
  • raw materials issued
  • factory wages
  • factory electricity
  • factory rent
  • depreciation on factory equipment, etc.

Cost Accounts Section:

  • direct (raw) materials cost
  • direct labour cost
  • factory overhead cost
  • administration cost
  • selling and distribution cost.

Integration of ethical issues related to a manufacturing environment

Integration of internal audit and internal control issues related to a manufacturing environment

Definition and explanation of basic cost concepts:

  • direct labour
  • indirect labour
  • direct materials (raw materials)
  • indirect materials
  • factory overhead costs
  • Prime cost
  • variable costs
  • fixed costs
  • workinprocess

Application of principles of internal control

Ethical behaviour related to a manufacturing business

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