January 2023

Introduction to costing terms

By |2022-09-15T12:32:29+02:00January 24th, 2023|Cambridge AS A Level Accounting, Notes, ZIMSEC A Level Accounting|

Cambrige AS and A Level Accounting Notes (9706)/ ZIMSEC  Advanced Accounting Level Notes: Costing Terms

  • Before we get started with the actual costing process you need to get acquainted with various cost accounting terms and costing
  • It is important to note that this is not meant to be a glossary of all the terms in cost accounting
  • This is […]
Read More
Comments Off on Introduction to costing terms

Costing for Labour: Introduction

By |2022-09-15T12:32:19+02:00January 24th, 2023|Cambridge AS A Level Accounting, Notes, ZIMSEC A Level Accounting|

Cambrige AS and A Level Accounting Notes (9706): Costing for labour

  • In most entities the two largest expenses are usually material/purchases and labour
  • We have already looked at costing for materials (inventory) here
  • We will now examine the costing for labour
  • First we will look at the basic terms involved and different labour setups and scenarios of typical […]
Read More
Comments Off on Costing for Labour: Introduction

Marginal Costing: Introduction

By |2022-09-15T12:30:35+02:00January 24th, 2023|Cambridge AS A Level Accounting, Notes, ZIMSEC A Level Accounting|

Cambrige AS and A Level Accounting Notes (9706)/ ZIMSEC  Advanced Accounting Level Notes: Marginal Costing: Introduction

  • We have already looked at absorption costing here
  • Now it is time to examine marginal costing which is an alternative way of looking at things
  • For while absorption costing treats production overheads as a product cost by assigning a share of these […]
Read More
Comments Off on Marginal Costing: Introduction

Cost Behaviour: Fixed, Variable and Semi-variable costs

By |2022-09-15T12:32:28+02:00January 24th, 2023|Cambridge AS A Level Accounting, Notes, ZIMSEC A Level Accounting|

Cambrige AS and A Level Accounting Notes (9706)/ ZIMSEC  Advanced Accounting Level Notes: Cost Behaviour: Fixed Costs, Variable Costs and Semi-Variable Costs

  • Costs can be classified in a number of ways
  • One way to classify costs is by behaviour
  • This involves determining how certain costs will vary according to the organisation’s level of activity
  • For example how rentals change […]
Read More
Comments Off on Cost Behaviour: Fixed, Variable and Semi-variable costs

Costing for Labour: Remuneration Methods

By |2022-09-15T12:32:18+02:00January 24th, 2023|Cambridge AS A Level Accounting, Notes, ZIMSEC A Level Accounting|

Cambrige AS and A Level Accounting Notes (9706): Costing for labour: Remuneration methods

If you are viewing this post on a small screen/mobile device please view it in Landscape Mode otherwise it will be distorted.

  • Now that we have examined the basics of labour within organisations
  • It is time to look at remuneration methods
  • There are three basic remuneration […]
Read More
Comments Off on Costing for Labour: Remuneration Methods

Marginal Costing: Statement of Profit or Loss

By |2022-09-15T12:30:34+02:00January 24th, 2023|Cambridge AS A Level Accounting, Notes, ZIMSEC A Level Accounting|

Cambrige AS and A Level Accounting Notes (9706)/ ZIMSEC  Advanced Accounting Level Notes: Marginal Costing: Statement of Profit or Loss

  • As has been outlined here there are differences between marginal costing and absorption costing
  • One such stark difference is in the format of statements of profit
  • Below is a proforma Statement of Profit using marginal costing

Marginal Costing Statement […]

Read More
Comments Off on Marginal Costing: Statement of Profit or Loss

Types of Costs: Period, Opportunity, Sunk and Relevant costs

By |2022-09-15T12:32:28+02:00January 24th, 2023|Cambridge AS A Level Accounting, Notes, ZIMSEC A Level Accounting|

Cambrige AS and A Level Accounting Notes (9706)/ ZIMSEC  Advanced Accounting Level Notes: Types of Costs: Period, Opportunity, Sunk and Relevant costs

  • In addition to looking at how costs behaviour in relation to the level of activity ( units produced)
  • It […]
Read More
Comments Off on Types of Costs: Period, Opportunity, Sunk and Relevant costs

Costing for Overheads: Introduction

By |2022-09-15T12:32:18+02:00January 24th, 2023|Cambridge AS A Level Accounting, Notes, ZIMSEC A Level Accounting|

Cambrige AS and A Level Accounting Notes (9706)/ ZIMSEC  Advanced Accounting Level Notes: Costing for Overheads: Introduction

  • A business needs to know the cost per unit of its products for many reasons
  • For example in order to be able to:
  • Value its inventory properly
  • Come up with an appropriate selling price so that they can ensure they are making […]
Read More
Comments Off on Costing for Overheads: Introduction

Reconciliation of absorption and marginal profits

By |2022-09-15T12:30:33+02:00January 24th, 2023|Cambridge AS A Level Accounting, Notes, ZIMSEC A Level Accounting|

Cambrige AS and A Level Accounting Notes (9706)/ ZIMSEC  Advanced Accounting Level Notes: Reconciliation of marginal costing and absorption costing profits

  • Because absorption costing includes the cost of fixed overheads in:
    1. Opening and closing inventory and
    2. Cost of sales
  • There will be inevitable differences in profit figures calculated using the two methods
  • These differences will arise whenever there […]
Read More
Comments Off on Reconciliation of absorption and marginal profits

Direct materials, indirect materials and labour

By |2022-09-15T12:32:27+02:00January 24th, 2023|Cambridge AS A Level Accounting, Notes, ZIMSEC A Level Accounting|

Cambrige AS and A Level Accounting Notes (9706)/ ZIMSEC  Advanced Accounting Level Notes: Types of Costs: Direct materials, indirect materials and labour

  • It is important to point out at this stage that there are generally three types of entities:
    1. Manufacturing entities that make goods and sell them
    2. Merchandising entities that purchase goods and sell them for a profit […]
Read More
Comments Off on Direct materials, indirect materials and labour
Toggle Sliding Bar Area
Go to Top