WAEC syllabus 47/waec-cost-accounting-syllabus
WAEC Cost Accounting Syllabus

PRINCIPLES OF COST ACCOUNTING

AIMS AND OBJECTIVES  The aims of this examination are to test candidates’ ability to a) assemble, analyze and ascertain the cost of producing and procuring goods and  services;(b) develop skills for using Cost Accounting as a tool for assisting management with information needed for planning, control and decision making; (c) show awareness of economic use of resources through costing techniques; (d) demonstrate knowledge of basic methods of presenting cost statements. 

SCHEME OF EXAMINATION 
There will be two papers, Papers 1 and 2, both of which will be a composite paper to be taken at one sitting. 
PAPER 1: Will consist of fifty multiple-choice objective questions all of which must be answered within 1 hour for of 25 marks.
PAPER 2: Will consist of nine essay-type questions. Candidates will be required to answer five questions within 2 hours for 75 marks.
The paper will consist of two sections, Sections A and B as follows:
Section A: Theory of Principles of Cost Accounting - four questions will be 
set and candidates will be required to answer two of them for 15 marks each.
Section B:  Practices of Principles of Cost Accounting – five questions will 
be set and candidates will be required to answer three of them for 15 marks each.

DETAILED SYLLABUS 
 TOPICS NOTES   1.  INTRODUCTION TO 1.1 Definitionand objectives of   COST ACCOUNTING CostAccounting.    1.2 Functions and importance of Cost    Accounting    1.3 Differences among Cost Accounting,    Management Accounting and    Financial Accounting.    1.4 Basic Costing terminologies e.g     Cost Centre, cost unit, unit cost    etc.   2. CHARACTERISITICS 2.1 Characteristics of a goodCosting    OF A GOOD COSTING SYSTEM System e.gsimple, relevant, accurate,    cost-effective etc    2.2 Qualities of good Cost information    e.g brief, timely, comparable,    objective etc.   3. COST CLASSIFICATION    AND TYPES OF COST 3.1 Basis of cost classification:    Classification of cost according to    behaviour, function, nature etc.    3.2Types of cost under various    Classifications eg. direct cost,    indirect cost, period cost,    historical cost, sunk cost, etc.    3.3Components of cost build-up for    ascertaining the cost/profit of a    product or an activity e.g prime cost,    overheads, factory cost, cost  of    production, cost of sales, total cost etc.   4. ELEMENTS OF COST    4.1 Explanation of elements of cost i.e    Material, Labour and Expenses.    4.2 Identification and grouping of    elements of cost into direct and    indirect costs e.g direct material    cost direct, labour cost, direct    expenses and overheads such as    factory, administration, selling and    distribution, etc.       TOPICS NOTES   5.  MATERIALS 5.1 Purchasing, receiving, storage and    their documentation.    5.2 Stocktaking: periodic and continuous    and perpetual inventory system.    5.3 Inventory control – Minimum,    Maximum, Re-order stock levels and    Economic Order Quantity.    (computation of Economic Order     Quantity is not required).    5.4 Pricing of issues and Stock valuation    using FIFO, LIFO,Simple Average,    Weighted Average,Standard Price    methods and their advantages and    disadvantages.   6. LABOUR 6.1 Labour: Meaning and types of labour    and labour cost:- skilled and unskilled.    - direct and indirect.    6.2 Methods of labour remuneration:    - Time rate    - Piece rate: straight piece rate,    differential piece rate, price rate with    guaranteed time rate.    - incentive schemes: premium bonus,       overtime premium.    6.3 Methods of time keeping and    concept of idle time.    6.4 Payroll procedures:    -Preparation of wages analysis sheet    -statutory and non-statutory deductions    should be emphasized. (questions will    be limited to computation of individual    bonus schemes).    6.5 Labour Turnover: Meaning, causes and    cost.    -Labour turnover ratio.   7. OVERHEADS 7.1 Definition of overheads.    7.2 Types of overheads.    7.3 Overhead analysis, collection,    classification, allocation, apportionment    and redistribution.       TOPICS NOTES    7.4   Overhead Absorption:    - Calculation of Overhead    Absorption Rates (OAR) e.g    Direct Wages Percentage, Direct    Material Cost Percentage,    Machine Hour Rate, Prime  
   Cost percentage, etc.    7.5  Application of Overhead Absorption    Rates.    7.6  Calculation of under/over absorption of    overheads.    7.7  Activity Based Costing:    7.7.1 Meaning, advantages and disadvantages    of Activity Based Costing (ABC).    7.7.2 Steps in Activity Based Costing.    7.7.3 Differences between Activity Based    Costing and Traditional Product Costing    systems.    - limitations of Traditional Product    Costing System.    7.7.4 Computation of product cost using    Activity Based Costing.   8. COSTING METHODS 8.1.1 Purpose and circumstances under   8.1 Job/Batch Costing which Job/Batch Costing is applied.    8.1.2 Ascertainment of cost of a job or batch.   8.2 Contract Costing 8.2.1 Meaning and characteristics.    8.2.2 Preparation of Contract Accounts    and Contractee’s Account.   8.3 Service Costing 8.3.1 Meaning and objectives of Service    Costing.    8.3.2 Organizations that use Service Costing.    8.3.3  Ascertainment of cost per unit of    services rendered.   8.4 Process Costing 8.4.1 Explanation and circumstance where    process costing is applied    8.4.2 Terminologies in process costing e.g    joint-products, by-products, scrap, waste,    etc.       TOPICS NOTES    8.4.3 Preparation of process accounts    including Normal loss, Abnormal    Loss and Abnormal gain.   9.0 COSTING TECHNIQUES  
  9.1 Marginal and Absorption Costing 9.1.1 Meaning anddistinction    between Marginal and  Absorption    Costing.    9.1.2 Terminologies used in Marginal and    Absorption Costing - fixed cost, variable    cost, semi-variable costs, contribution,    period and product costs. etc.    9.1.3 Preparation of Income Statement using    both Marginal and Absorption costing.   9.2 Break Even Analysis 9.2.1 Meaning, importance, assumptions and    limitations of break-even analysis.    9.2.2 Computation of break-even points in    units and values from given data    including segregation of costs ( using    high and low method).    9.2.3 Preparation and interpretation of    break-even charts.   10.0 BUDGETING AND BUDGETARY 10.1 Explanation of basic terminologies in   CONTROL Budgeting and Budgetary control.    10.2  Budgeting process and Administration.    10.3  Importance of Budgeting and    Budgetary control.    -  Preparation of budgets will be limited    to cash sales, material usage, material    purchase and production budgets.    10.4 Functional budgets:    -  Sales, production, capital expenditure,    etc.    10.5 Cash budget and master budget.   11.0 STANDARD COSTING 11.1 Meaning and importance of Standard    Costing    11.2 Types of Standards.    11.3 Computation of variances:    •   Material (price and usage)    •   Labour (rate and efficiency).        

 TOPICS NOTES  

12.0 COST ACCOUNTS

12.1 Interlocking cost accounts.    

12.2 Preparation of cost ledger accounts.

12.3 Reconciliation of cost and financial profits.

12.4 Integrated Cost accounts.

12.5 Preparation of ledger accounts and income statements.

SUGGESTED READING LIST
 A. RECOMMENDED TEXT BOOKS    Cost Accounting - by Harper, W.M - Published by  Pitman Publishing Ltd.    Cost Accounting - by T. Lucey - Published by DPP Publications Ltd    Weldon’s Cost Accounting   -Published by Macdonald andEvans Ltd. - by    Owler, L.W.J and Brown, J.L    Principles of Cost Accounting for - Published by Longmanfor the    Senior Secondary Schools in Ghana Ministry of Education, Ghana (1991).    Cost Accounting – by Drury, Colin - Published by Professional  Heinemann    Publishing.  

B. OTHER SUGGESTED LOCAL TEXTS /PAMPLETS/JOURNALS IN GHANA 
 1. Costing Made Easy    – by Kingsford Opoku (Kings Series)   2. Costing for ‘U’ – by Barnabas Dadzie (C for ‘U’ Series).  
Cost Accounting for Senior HighSchool - by Williams Asamoah Appiah (AKI-OLA Series)-AKI-OLA Publications, Accra 


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