NATIONAL OPEN UNIVERSITY OF NIGERIA

UNIVERSITY VILLAGE, PLOT 91, CASDASTRAL ZONE, NNAMDI AZIKIWE EXPRESS WAY, JABI, ABUJA.
FACULTY OF MANAGEMENT SCIENCES
OCTOBER/NOVEMBER 2016 EXAMINATION

COURSE CODE: ACC305                                                               

COURSE TITLE:  COST ACCOUNTING

CREDIT UNIT: 3

TIME ALLOWED: 2 HOURS 30 MINUTES

Instructions:

1. Attempt question number one (1) and any other three (3).
2. Question number 1 is compulsory and carries 25 marks while the other carry 15 marks each.
3. Present all your points in coherent and orderly manner.

QUESTION 1

List and discuss the problems encountered in adopting profit as a yardstick in measuring performance.(25marks)

QUESTION 2

Analysis of cost and activity data shows that the variable cost of part No. 320 can be represented by function:

Variable cost of part No. 320 = bx + Cx² + dx³

Where: b = material cost per unit = N3

              c = labour cost per unit =N0.80

d = variable overheads per unit = N0.06

Calculate

1. Variable cost when production is 10 units

2. Variable cost when production is 15 units(15marks)

QUESTION 3

Discuss the various costing methods     (10marks)

QUESTION 4

1. What do you understand by the term “Integrated accounting” and what advantages does it present compared to other systems of cost and financial accounting? (3marks)
2. What are the prime purpose of a cost statement, and what rules should be borne in mind in its preparation?(12 marks)      

QUESTION 5

The materials analyst has forecast the following data in respect of material MS6:

Maximum consumption of material per week:                         400 units

Normal consumption of material per week:                              300 units

Minimum consumption of material per week:                          200 units

Reorder quantity:                                                                    2,000 units

Reorder period:                                                                         4-6 weeks

Use the above figures to calculate each of the levels:

a) Reorder level

b) Minimum stock level

c) Maximum stock level

d) Average stock level(15marks)

QUESTION 6

Discuss three methods of depreciation that are most frequently encountered.   (15marks)