S1 - cost classification

Question 1

what is cost accounting

Answer 1

establishment of budgets, standard costs, processes, activities, variances
attributing costs to all activities
Job costing, process costing, activity based costing
Balance sheet - raw materials, work in progress, finished goods
Income statement - cost of goods manufactured and cost of goods sold

Question 2

what is management accounting

Answer 2

control
Decision making
Planning
Functions, activities, products, processes
Internal use
Relevant, timely, accurate, flexible

Question 3

what is cost object

Answer 3

any activity for which cost information is requires - product or service

Question 4

what is cost driver

Answer 4

any factor which causes a change in cost of an activity

Question 5

what is period cost

Answer 5

fixed cost

Question 6

what is prime cost

Answer 6

direct labour, material and expense

Question 7

what is production cost

Answer 7

prime cost + production overhead

Question 8

what is total cost

Answer 8

production cost + admin, selling and distribution overheads

Question 9

how to separate fixed and variable elements

Answer 9

high low method, scattergraph method or least squares method