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    CW ONE Guide BCOM

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    This document provides a marking guide for a coursework test in cost and management accounting at Makerere University Business School. It outlines four key branches of accounting that can be used to provide cost information: financial accounting, management accounting, cost accounting, and inflation accounting. It also lists three common purposes for which businesses require cost information: budgeting, planning and forecasting, organizing, and cost ascertainment. The guide then provides a sample cost statement for a company called Northshire and includes questions to calculate various cost components such as prime costs, factory overheads, and total costs.

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    CW ONE Guide BCOM

    Uploaded by

    jhllkjlghkjl
    22 views3 pages
    This document provides a marking guide for a coursework test in cost and management accounting at Makerere University Business School. It outlines four key branches of accounting that can be used to provide cost information: financial accounting, management accounting, cost accounting, and inflation accounting. It also lists three common purposes for which businesses require cost information: budgeting, planning and forecasting, organizing, and cost ascertainment. The guide then provides a sample cost statement for a company called Northshire and includes questions to calculate various cost components such as prime costs, factory overheads, and total costs.

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    This document provides a marking guide for a coursework test in cost and management accounting at Makerere University Business School. It outlines four key branches of accounting that can be used to provide cost information: financial accounting, management accounting, cost accounting, and inflation accounting. It also lists three common purposes for which businesses require cost information: budgeting, planning and forecasting, organizing, and cost ascertainment. The guide then provides a sample cost statement for a company called Northshire and includes questions to calculate various cost components such as prime costs, factory overheads, and total costs.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    22 views3 pages

    CW ONE Guide BCOM

    Uploaded by

    jhllkjlghkjl
    This document provides a marking guide for a coursework test in cost and management accounting at Makerere University Business School. It outlines four key branches of accounting that can be used to provide cost information: financial accounting, management accounting, cost accounting, and inflation accounting. It also lists three common purposes for which businesses require cost information: budgeting, planning and forecasting, organizing, and cost ascertainment. The guide then provides a sample cost statement for a company called Northshire and includes questions to calculate various cost components such as prime costs, factory overheads, and total costs.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 3

    MAKERERE UNIVERSIRY BUSINESS SCHOOL

    FACULTY OF COMMERCE, DEPARTMENT OF ACCOUNTING


    MARKING GUIDE FOR COURSE WORK TEST ONE; ACADEMIC YEAR 2018/2019

    PROGRAMME : BACHELOR OF COMMERCE


    COURSE CODE : ACC3201
    YEAR OF STUDY : TWO
    SEMESTER : TWO
    COURSE NAME : COST AND MANAGEMENTACCOUNTING
    DATE : Sunday Feb 24, 2019
    TIME : 08:00AM - 09:00 AM
    ANSWER ALL THE QUESTIONS
    Question One
    Accounting information is essential for every business in order to serve the needs of the
    interested parties. Consequently, for management to provide accounting information effectively
    to all the stakeholders, a thorough understanding of all the accounting branches is essential.
    a) Describe four branches of accounting that can be used to provide cost information.
    √ (2 marks each 8
    Marks)
    Branch Meaning
    Financial accounting√ Mainly confined to the preparation of financial statements for the
    various concern parties and financial institutions. √
    Management accounting√ Concerned with the provisions and use of accounting information to
    managers within organizations, to provide them with the basis to
    make informed business decisions that will allow them to be better
    equipped in their management and control functions. √

    Cost accounting√ Provides the detailed cost information that management needs to
    control current operations and plan for the future. √

    Inflation accounting√ Provides information about changes in prices of a commodity with


    the changes in purchasing power of the commodities√.

    Social accounting√ Deals with socio-economic analysis at the preparation, estimation and
    interpretation of nation and international income.
    Human resource accounting√ Deals with the measurement of the cost and value of people for the
    organization√
    Value –Added Accounting√ Income is measured by the value added by a firm in a particular
    period. √

    b) Using relevant cases, explain any three purposes for which cost information is required.
     Budgeting, planning and forecasting; plans for both short term and long-term,
    Management should constantly be thinking a head.
     Organizing; framework with in which necessary activities are performed, allocation
    responsibilities to staff and lines of Authority.
     Cost ascertainment -collection and classification of costs /expenses
     Determination of selling price: maximizing profit; selling price is fixed by adding a
    margin of profit
     Preparation of accounts and reports; every business constantly relies upon the reports on
    cost data in order to know the level of efficiency relating to purchase, production, sales
     Periodical profits and losses
     Comparative purposes; facilitates cost comparison in respect of jobs, process, and
    departments and also between periods, industry
     Performance evaluation; techniques such as budgetary control and standard costing help
    in knowing the performance of business.
     Stock management and control, inventory management systems for quality, quantity,
    suppliers, storage, authorization, procurement processes.

    (2 marks each 6 marks)


    Question Two
    Northshire Company cost statement for the period ending 31 March 2018 √

    Items Amount Totals


    Opening stock of raw materials 200,000 √  
    Purchases 100,000 √  
    Carriage inwards 20,000 √  
    Less. Closing stock on Raw materials 150,000 √  
    Materials consumed 170,000 √
    Direct wages (40%*400,000) 160,000 √
    a) Prime costs 330,000 √
    Factory overheads  
    Indirect wages 100,000 √  
    Factory rent and rates (60%*400,000) 240,000 √  
    Depreciation of the factory machine 5,000 √  
    Other factory indirect expenses 8,000√ 353,000 √
    PM C+ F. OHDS 683,000 √
    Add. Opening stock of WIP 100,000√  
    lESS. Closing stock Of WIP 120,000√  
    b) Factory works 663,000 √
    Add: Office and Administration  
    Office salaries and wages
    (30%*400,000) 120,000 √  
    Office Rent and rates (40%*400,000) 160,000 √  
    Coomunication 100,000 √  
    Interest on loan 20,000 √  
    Audit fees 50,000√  
    Other administration expenses 6,000 √ 456,000√
    c) Total cost of production 1,119,000 √
    Add: Opening stock of finished goods 220,000√  
    Less: Closing stock of finished goods 140,000√  
    Cost of goods sold 1,199,000√
    Add: Selling and distribution  
    Salaries for sales men (30%*400,000) 120000√  
    Advertising 40,000√  
    Commissions 50,000√ 210,000√
    d) √TOTAL COSTS   1,409,000√

    (1 mark for the tittle; 1/2√ each *30=16 marks)

    “End of the Guide”

    Total = 30 Marks

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