Basic Costing: Pre-exam Checklist
Understand the cost recording system within an organisation
(Press the ticks on the left to mark your understanding)
Explain the nature of an organisation's business transactions in relation to its accounting systems
Explain the purpose and structure of a costing system within an organisation
Identify the relationship between the costing and accounting systems within an organisation
Identify sources of income and expenditure information for historic, current and forecast periods
Identify types of cost, profit and investment centres
Be able to use the cost recording system to record or extract data
Explain how materials, labour and expenses are classified and recorded
Explain different methods of coding data
Classify and code cost information for materials, labour and expenses
Classify different types of inventory as:
* Raw materials
* Part-finished goods (work in progress)
* Finished goods6
Calculate inventory valuations and issues of inventory using these methods :
* First in first out (FIFO)
* Last in first out (LIFO)
* Weighted average
Use these methods to calculate payments for labour: * Time rate * Piecework rate * Bonuses
Explain the nature of expenses and distinguish between fixed, variable and semi-variable overheads
Calculate the direct cost of a product or service
Be able to use spreadsheets to provide information on actual and budgeted income and expenditure
Enter income and expenditure data into a spreadsheet
Explain how spreadsheets can be used to present information on income and expenditure and to facilitate internal reporting
Enter budgeted and actual data on income and expenditure into a spreadsheet to provide a comparison of the results and identify differences
Use basic spreadsheet functions and formulas
Format the spreadsheet to present data in a clear and unambiguous manner and in accordance with organisational requirements
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