Syllabus Overview for LCCI Cost Accounting Second Level (2016) Series 2,3 and 4

The aim of the examination is to test the candidate’s knowledge and understanding of

The purposes of cost accounting, the terminology used and the methods by which the costs of operations, processes, departments, products or services are ascertained using the absorption principle

Elementary aspects of the marginal principle, optional technique and costing systems

SYLLABUS CONTENT

1.0 General

Cost units; Cost centres; Cost classification into direct or indirect by function or into cost behaviour categories; Elements of costs; Coding; Form Design; Accounting entries

2.0 Costing For Materials

Ordering; Receiving; Inspection; Storage and issue procedures. Documents involved in stores routine; Perpetual inventory records; Continuous stock taking and treatment of discrepancies; Method of pricing stores issues and effect on reported profits; Maximum stock, minimum stock and re-order levels

3.0 Costing For Labor

Time and output records; Methods of remuneration and effect on unit cost; Payroll preparation and wages analysis; Treatment of overtime premium, shift premium and idle time

4.0 Costing for Overhead

Main sources of total overheads, including depreciation, using a fixed asset registers: Use of production and service cost centers; Allocation: Apportionment; Re-apportionment of service cost centers. Basis for and calculation of absorption rates; Use of absorption rates; Under or over absorption

5.0 Costing Methods for

Specific orders – Job, batch and contract
Continuous process- Normal loss. Scrap Value. Abnormal loss or gain; Work in progress; Equivalent units; Joint products & By products
Provision of services- Service organizations, both internal and external

6.0 Marginal Costing

Elementary knowledge of the use of contribution for decisions and the effect on stock values and reported profits

7.0 Optional Techniques

Elementary knowledge of budgeting and standard costing restricted to prime cost variance analysis

8.0 Costing Systems
Simple examples of integrated accounting systems. Basic understanding of uniform costing

EXAMINATION REQUIREMENTS:

A 2 ½- hour examination. 5 questions are to be answered from a choice of 6
Graph paper are provided. Calculators ( no printout, silent, cordless no word display facilities are allowed.