Paper 8

Paper 8

Paper 8 : Cost Accounting (CAC)

OBJECTIVES

To provide an in depth study of the Cost Accounting Principles and Techniques for identification, analysis and classification of cost components to facilitate managerial decision making.

Learning Aims

The syllabus aims to test the student’s ability to:

  • Understand and explain the conceptual framework of Cost Accounting
  • Explain the basic concepts and processes in determination of cost of products and services
  • Understand the Cost Accounting Standards (CAS)
  • Apply marginal costing in decision making
  • Apply the concept of Standard Costing for variance analysis

INTRODUCTION TO COST ACCOUNTING [40 MARKS]

  • Introduction to cost accounting:
  • Cost ascertainment – elements of cost
  • Cost accounting standards (basic understanding only) (CAS 1 to CAS 24)
  • Cost book keeping:

METHODS OF COSTING [30 MARKS]

  • Methods of costing:

COST ACCOUNTING TECHNIQUES [30 MARKS]

  • Cost accounting techniques