SomeaKenya provides Updated and Revised notes for the current CPA syllabus. Revision kits (Past papers with answers) are also available to help you with revision of the upcoming exams. you can get these materials in Hardcopies (Printed and Binded) and also available in Softcopy form when you subscribe on mobile application someakenya app. (Note: Softcopies are not Printable and can only be read using android phones) Click here to download SOMEAKENYA APP from Google Playstore.
CONTENT
11.1 Nature and purpose of cost and management accounting
– The nature of cost accounting and costing terms
– The role of cost accounting in management
– The purposes of cost accounting information
– Scope of cost accounting
– Meaning of management accounting, scope, limitations, applications
– Relationship between cost, financial and management accounting
– Selection of an ideal cost accounting system
11.2 Cost classification
– Definition and purpose of cost classification
– Methods of cost classification: by nature/elements of manufacturing costs; functional classification; behavioural classification; controllability; time; financial accounting; identification with inventory; for decision making
11.3 Cost estimation
– Meaning of cost estimation
– Methods of estimating cost; non-mathematical methods like engineering method, accounts analysis method and high-low method; mathematical methods like scatter graph method, OLS regression method (simple linear regression only)
11.4 Accounting, for material, labour and overheads
– Accounting for materials and inventory; material cost records, purchasing procedures, receipt and issues of material, methods of valuing material issues, inventory control procedures; economic order quantity (EOQ) and economic batch quantity(EBQ) models and back flush
– Accounting for labour: Methods of labour remuneration, labour control procedures, maintenance of labour records
– Accounting for overheads: Types of overheads, manufacturing, distribution and administration, service departmental cost allocation and apportionment, overheads analysis, overhead absorption rates, over or under absorption
11.5 Costing methods
– Job order costing
– Batch costing
– Process costing (including work in progress; joint and by-products)
– Service costing
– Unit costing
11.6 Marginal and absorption costing
– Distinction between marginal and absorption costing
– Valuation of products under marginal and absorption costing
– Preparation of marginal and absorption statements; cost of production and profit determination
– Applications of marginal costing: break-even analysis and charts (single product)
– Simplified decision problems; accept or reject, special order, dropping a product, make or buy
– Operating statements
11.7 Activity based costing
– Meaning of ABC
– Types of activities
– Overhead absorption rates
– Incomes statement
11.8 Budgeting and budgetary control
– Nature and purposes of budgets
– Preparation of budgets; master budgets, functional (department budgets, cash budgets), proforma financial reports (income statements and balance sheets)
– Purpose of budgetary control; operation of a budgetary control system, organisation and coordination of the budgeting function
– Distinction between budgeting and budgetary control in the private and public sectors
11.9 Standard costing
– Types of standards
– Principles of setting standards
– Standard cost card
– Behavioural aspects of standard costing
– Generation of standard cost information
– Materials, labour and overheads variances; price, efficiency mix and yield variances
