NATIONAL OPEN UNIVERSITY OF NIGERIA

UNIVERSITY VILLAGE, PLOT 91, CASDASTRAL ZONE, NNAMDI AZIKIWE EXPRESS WAY, JABI, ABUJA.
FACULTY OF MANAGEMENT SCIENCES
APRIL/MAY 2019 EXAMINATION

COURSE CODE: ACC306​

CREDIT UNIT: 3

COURSE TITLE: COST ACCOUNTING

TIME ALLOWED:​21/2HRS

INSTRUCTIONS:​

1. Attempt question Number one (1) and any other (3) questions

2. Question 1 carries 25 marks, while the other questions carry 15 marks each

3. Present all points in coherent and orderly manner

Question 1

i) Explain the factors that will have to be taken into consideration when fixing maximum and minimum stock levels. (10 marks)

ii) From the figures below, you are required to calculate:

a) Reorder level (5 marks)

b) Maximum stock level (5 marks)

c) Maximum stock level and briefly discuss them. (5 marks)

The materials analysis of Political Party Company has forecasted the following data in respect of Material APC-PDP 5050:

Maximum consumption of material per week​800 units

​Normal consumption of material per week​600 units

Minimum consumption of material per week  ​400 units

Reorder quantity​4,000 units

Reorder period​4-6 weeks

Total = 25 marks

Question 2

i) Distinguish between cost accounting and financial accounting. (8 marks)

ii) Discuss the essential elements of effective cost accounting information (7 marks)

Question 3

Discuss in detail the various methods of valuing materials.

Question 4

Explain the following terms as they relate to the methods of ascertaining actual costs.

i) Job costing (5 marks)

ii) Unit costing (5 marks)

iii) Process costing (5 marks)

          ​Total = 15 Marks

Question 5

i) In organization for wages control, briefly discuss the five main divisions of responsibility. (10marks)

ii) Under what circumstances will payment by flat time-wages be ideal / suitable? (5marks)

Question 6

i) Briefly explain the three major elements of manufacturing costs and (9 marks)

ii) Differentiate between overhead absorption and absorption costing (6 marks)