Chapter 3 - Other Costing Techniques

Part A. Cost accounting systems - 30%
Part C. Short-term decision making - 30%

Have a go at the few chapter questions to test your undestanding of Chapter 3.

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Part A Other Costing Techniques & Modern Manuf. (43 q)

Part C Other Costing Techniques (17 q)

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Complete P1 Practice Kit with 500 Q&A

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Component

      Indicative syllabus content

A.1 Discuss costing methods and their results.

 

(a) Apply marginal (or variable) throughput and absorption accounting methods in respect of profit reporting and inventory valuation

  • Marginal (or variable) throughput and absorption accounting systems of profit reporting and inventory valuation, including the reconciliation of budget and actual profit using absorption and/or marginal costing principles.
A.3 Explain the role of environmental costing.

(a) Explain the role of environmental costing as part of an environmental management system.

  • The classification of environmental costs using the quality costing framework.
  • Linking environmental costs to activities and outputs and their implication for decision making.
C.2 Analyse short-term pricing and product decisions.

(d) Explain why joint costs must be allocated to final products for financial reporting purposes but why this is unhelpful when decisions concerning process and product viability have to be taken.

  • The allocation of joint costs and decisions concerning process and product viability based on relevant costs and revenues.