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| A | 1.1 | Elements of Cost |
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| | -Explain the role of a cost/management accountant. |
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| | -Describe and distinguish between cost centres and profit centres. |
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| | -Describe and distinguish between non-controllable and controllable costs at various levels in an organisation. |
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| | -Identify the various product cost elements (materials, labour and overheads) and distinguish between direct and indirect costs. |
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| | -Calculate predetermined overhead recovery rates and identify methods of disposing of over/under applied overheads. |
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| | -Calculate charge-out rates. |
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| | -Prepare a statement of cost of goods manufactured. |
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| A | 1.2 | Cost/Volume Profit Relationships |
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| | -Define and differentiate between fixed and variable costs. |
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| | -Segregate mixed costs into their fixed and variable components using the "high-low" method. |
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| | -Calculate the break-even point using graphical and equation approaches. |
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| | -Calculate the break-even point of changes in sales volume and price, variable costs and fixed costs. |
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| | -Calculate the level of sales required to achieve a predetermined profit. |
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| | -Calculate the margin of safety. |
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| | -Calculate the break-even point for a product mix comprising up to three products. |
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| | -Prepare a break-even chart and a profit/volume chart. |
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| A | 1.3 | Marginal Costing |
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| | -Define marginal and relevant costing. |
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| | -Describe the relevance of past to costs to managerial decisions. |
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| | -Apply marginal costing concepts to the following decision making situations: special orders/pricing, discontinuing products or departments, maximisation of profits for scarce resources, and make or buy. |
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| A | 1.4 | Job Costing |
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| | -Calculate the cost of completed jobs and jobs in progress from details of material and labour used, and overhead applied. |
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| | -Show the disposal of over or under applied overhead accounts at balance date. |
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| | -Prepare a revenue statement showing the net profit for the period. |
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| A | 1.5 | Process Costing |
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| | -Explain the concept of equivalent units. |
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| | -Calculate the cost of a product under the process costing approach. |
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| | NOTE-Only the weighted average method should be used, |
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| | - accounting for wastage and spoilage is excluded, |
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| | - examples should cover only one department, for one period, with no opening work in process. |
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| A | 1.6 | Standard Costing |
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| | -Set the standard cost for a product from the information supplied. |
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| | -Compute price and quantity (rate and usage) variances for materials and labour. |
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| | -Compute variable overhead spending and efficiency variances and fixed overhead spending and capacity variances. |
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