MIN IST RY OF E D U CATION SCIE NCE A ND SPORTS

Republic of Ghana

TEACHING SYLLABUS FOR PRINCIPLES OF COST ACCOUNTING

(SENIOR HIGH SCHOOL 2 - 4)

Enquiries and comments on this syllabus should be addressed to:

The Director
Curriculum Research and Development Division (CRDD)
P. O. Box 2739
Accra
Ghana
Tel: 021-683668
021-683651

September, 2008

TEACHING SYLLABUS FOR PRINCIPLES OF COST ACCOUNTING

RATIONALE
Cost accounting as a discipline in the business programme equips students with the basics of cost awareness and cost reduction to ensure creation and cautious
use of resources in small and large scale organizations.
Sections selected include basic principles, costing methods for cost and pricing purposes, costing techniques which are used to control and make informed
decisions to bear on cost units and cost centers in an organization. There are other topics that could be applied to cost determination and pricing of products.
A study of the principles provides an in-depth knowledge and skill required for determining, analyzing and reporting cost information in small businesses and other
organizations. It realizes and maintains the tenets of morals and values associated with the business program as a whole.
GENERAL AIMS
The syllabus has been painstakingly designed to help students to:
1.
2.
3.
4.
5.
6.

understand the concepts of cost in costing and pricing of products and activities.
appreciate the need to apply cost accounting principles in every day life.
adopt moral ethics and values in costing and pricing products in all spheres of life.
acquire skills and abilities to aid planning, analysis, production, marketing, finance, etc. in various areas in business and personal life.
use costing as a means of control and decision in business and other spheres of life.
encourage students to take higher tasks and assignments in cost accounting in the tertiary institutions particularly during the first year of the study of the
subject.

SCOPE OF CONTENT
-

The syllabus is geared towards provision of knowledge, skill and competence to students who may see the need to open their own businesses or seek
employment in organizations after the Senior High School.
It offers adequate foundation for students who will pursue further education in the tertiary institutions.
It provides brighter opportunity to students to undertake professional courses.

The syllabus has been grouped into eight sections to make for easy reading and understanding:
The sections are as follows:
- Introduction to cost accounting
- Classification of costs
- Accounting for materials
- Accounting for labour
- Accounting for overheads
- Costing methods for cost and pricing
- Costing techniques for control and decision making
- Cost bookkeeping.

ii

PRE-REQUISITE SKILLS AND ALLIED SUBJECTS

The study of Principles of Cost Accounting will require knowledge in English Language and Mathematics. Other subjects like Integrated science and Social
studies at the Junior High School and first year Senior High School levels will help in the effective study of the course.
To offer the course under the Business programme, the following elective subjects are compulsory:
- Financial Accounting
- Business Management

STRUCTURE AND ORGANIZATION OF THE SYLLABUS

This syllabus has been well structured to cover three (3) years of the Senior High School programme. Each years work consists of a number of sections.

The structure which is made up of the sections and unit topics for the three year period are shown overleaf:

iii

STRUCTURE AND ORGANIZATION OF THE SHS PRINCIPLES OF COST ACCOUNTING

SHS 2

SHS 3

SHS 4

TERM 1

TERM 1

TERM 1

SECTION 1: SCOPE OF COST ACCOUNTING

SECTION 1: ACCOUNTING FOR LABOUR

Unit 1: Meaning of cost accounting

Unit 2: Characteristics of good costing system
Unit 3: Basic costing terminologies
Unit 4: Types of cost
Unit 5: Qualities of good cost information

Unit 1: Labour remuneration

Unit 2: Time keeping
Unit 3: Labour turnover
Unit 4: Payroll accounting

TERM 2

TERM 2

SECTION 2: CLASSIFICATION OF COST

SECTION 2 ACCOUNTING FOR OVERHEADS

Unit 1: Methods of cost classification

Unit 2: Elements of cost

Unit 1: Analysis of overheads

Unit 2: Absorption of overheads
SECTION 3: COSTING METHODS FOR
PRICING (1)

SECTION 1: COSTING TECHNIQUES FOR

CONTROL AND DECISION (1)
Unit 1: Marginal Costing and Absorption Costing
Unit 2: Break-Even Analysis
Unit 3: Break-Even Chart

TERM 2
SECTION 2: COSTING TECHNIQUES FOR
CONTROL AND DECISION (2)
Unit 1: Budgeting and budgetary control
Unit 2: Functional Budgets
Unit 3: Standard costing

Unit 1: Job/Batch Costing

TERM 3
SECTION 3: ACCOUNTING FOR MATERIALS
Unit 1: Material control
Unit 2: Stores keeping
Unit 3: Stock control levels
Unit 4: Material pricing and stock valuation
Unit 5: Value Added Tax (VAT)

TERM 3
SECTION 4: COSTING METHODS FOR
PRICING (2)
Unit 2: Contract costing
Unit 3: Service costing
Unit 4: Process costing

iv

TERM 3
SECTION 3: COST BOOK KEEPING
Unit 1: Cost accounts interlocking
Unit 2: Reconciliation of cost and financial profits
Unit 3: Cost accounts integrated method

TIME ALLOCATION
Principles of Cost Accounting is allocated six (6) periods of 40 minutes each per week.
SUGGESTIONS FOR TEACHING THE SYLLABUS
Principles of Cost Accounting is a dynamic subject and therefore teachers are advised to read books of current edition and other academic and professional
journals relating to the subject in order to up-date their knowledge and skills.
GENERAL OBJECTIVES
General objectives have been listed at the beginning of each section. They are a summary of specific objectives of the various units contained in that section.
Read them carefully before you start teaching the sections. The general objectives must be read again after teaching all units of the section to ensure complete
coverage of the objectives.
SECTIONS AND UNITS
The syllabus has been planned on the basis of Sections and Units. Each years work is divided into sections. A section consists of a fairly homogenous body of
knowledge within the subjects. Within each section are units. A unit consists of a more related and homogenous body of knowledge and skills.
The syllabus is structured in five columns: Units, Specific Objectives, Contents, Teaching and Learning Activities and Evaluation. A description of the element of
each column is as follows:
Column 1 Units: The units in column I are divisions of the major topics of the section. You are expected to follow the unit topics according to the linear order in
which they have been presented. However, if you find at a point that teaching and learning in your class will be more effective if you skip to another unit in the
sequence, you may do so.
Column 2 Specific Objectives: Column 2 shows objectives which begin with numbers such as 3.4.5 or 4.4.1. These numbers are referred to as syllabus
Reference Numbers. The first digit in the syllabus reference number refers to the section, the second digit refers to the unit, while the third digit refers to the rank
order of the specific objectives. For example 3.4.5 means Section 3, Unit 4 (of section) and objective 5. Using syllabus reference numbers provides an easy way
of communication among educators. It also provides an easy way of selecting objectives for test construction. For instance, if unit 1 of section 2 of year one has
five specific objectives: 2.1.1 2.1.5, a teacher may want to base his/her test items/questions on objectives 2.1.3 and 2.1.4 and not use the other three objectives.
In this way, the teacher would sample the objectives within units and within sections to be able to develop a test that accurately reflects the importance of the
various skills taught in class.
You will note also that specific objectives have been stated in terms of the student ie. what the student will be able to do after the instruction and learning in the
unit. Each specific objective starts with the following The students will be able to .,. This in effect, means that, you have to address the learning
problems of each individual student. It means individualizing your instructions as much as possible such that, the majority of students will be able to master the
objectives of each unit of the syllabus.
Column 3 Content: The content in the third column of the syllabus presents a selected body of information that you will need to use in teaching a particular
unit. In some cases, the content presented is quite exhaustive. In other cases, you could add more information to the content presented. In a few cases, the
content space has been left blank for you to develop.
Column 4 Teaching and Learning Activities (T/LA): Teaching and Learning Activities that will ensure maximum student involvement and participation in the
lessons are presented in column 4. Try to avoid rote learning and drill-oriented methods, and rather emphasize on participatory teaching and learning. Teacher
are also encouraged to emphasize the cognitive, affective and psychomotor domains of knowledge in their instructional system, where appropriate. Teaching in
schools is expected to be students centered. You are encouraged to re-order the suggested teaching and learning activities and also add to them where necessary

in order to achieve optimum student learning. As we have applied already, the major purpose of teaching and learning is to make students acquire the habit of
analytical thinking and the capacity to apply their knowledge to problems. You should select a practical problem for each lesson. The selection must be made
such that students can use knowledge gained in the previous lesson and other types of information not specifically taught in class.
At the beginning of a lesson, state the problem, or write the problem on the board. Let students analyze the problem, suggest solutions, criticize solutions offered,
justify solutions and evaluate the worth of possible solutions.
There may be a number of units where you need to re-order specific objectives to achieve required learning effects.
Column 5 Evaluation: Suggestions and exercises for evaluating the lessons taught in each unit are indicated in Column 5. Evaluation exercises can be in the
form of oral questions, quizzes, essay structured questions, project work, etc. Try to ask questions and set tasks and assignments that will challenge your
students to apply their knowledge to issues and problems as we have already emphasized above and that will engage them in developing solutions and positive
attitudes towards the subject as a result of having undergone thorough instruction in this subject. Where the suggested evaluation tasks are not exhaustive, you
are encouraged to develop other creative evaluation tasks to ensure that students have mastered the instruction and behaviour implied in the specific objectives of
each unit.
You should develop a scheme of work and lesson plan for teaching the various units in this syllabus. The syllabus cannot be used as a substitute for lesson plans.
PROFILE DIMENSIONS
A central aspect of this syllabus is the concept of profile dimensions that should be the basis for instructions and assessment. A dimension is a psychological
unit for describing a particular learning behaviour. More than one dimension constitute a profile of dimensions. A specific objective such as: The student will be
able to solve, etc, contains an active verb solve, that indicates what the student will be able to do after teaching has taken place. Being able to solve a problem
after the instruction has been completed means that the student has acquired knowledge. Being able to explain, summarize, give adequate examples, etc. means
that the student has understood the lesson taught. Similarly, being able to analyze, summarize etc, means that the student can apply the knowledge acquired in
some new context. You will note that each of the specific objectives in this syllabus contains an action verb that describes the behaviour the students will be able
to demonstrate after the instruction. Knowledge, Application etc. are dimensions that should be the main focus of teaching and learning in schools, instructions
in most cases have tended to stress knowledge acquisition to the detriment of other higher level behaviours such as application, analysis etc. What is important in
learning is to be able to apply knowledge in a variety of situations. These are higher learning skills. Each action verb indicates the underlying profile dimension of
each particular specific objective. Instructors/Teachers should read each objective carefully to know the profile dimension towards which they have to achieve.
DEFINITION OF PROFILE DIMENSIONS
In Principles of Cost Accounting, the two profile dimensions that have been specified for teaching, learning and testing are:
a) Knowledge and Understanding
b) Application of Knowledge

40%
60%

Knowledge and Understanding (KU)

knowledge

The ability to:

remember, recall, identify, define, describe, list, name, match, state principles, facts and concepts. Knowledge is simply the ability
to remember or recall material already learned and constitutes the lowest level of learning.

understanding

The ability to:

explain, summarize, translate, rewrite, paraphrase, give examples, generalize, estimate or predict consequences based upon a
trend. Understanding is generally the ability to grasp the meaning of some material that may be verbal, pictorial, or symbolic.

vi

Application of Knowledge (AK)

The ability to use knowledge or apply knowledge, as implied in this syllabus, has a number of learning/behaviour levels. These levels include application, analysis,
synthesis, and evaluation. These may be considered and taught separately, paying attention to reflect each of them equally in your teaching. The dimension
Application of Knowledge is a summary dimension for all four learning levels. Details of each of the four sub-levels are as follows:

application

The ability to:

apply rules, methods, principles, theories, etc. to concrete situations that are new and unfamiliar. It also involves the ability to
produce, solve, operate, demonstrate, discover, etc.

analysis

The ability to:

break down a piece of material into its component parts; to differentiate, compare, distinguish, outline, separate, identify significant
points, etc., recognize unstated assumptions and logical fallacies, recognize inferences from facts, etc. Analytical ability underlies
discriminating thinking.

synthesis

The ability to:

put parts together to form a new whole. It involves the ability to combine, compile, compose, devise, plan, revise, design,
organize, create, and generate new ideas and solutions. Ability to synthesize underlies convergent thinking.

evaluation

The ability to:

appraise, compare features of different things and make comments or judgement, contrast, criticize, justify, support, discuss,
conclude, make recommendations, etc. Evaluation refers to the ability to judge the worth or value of some material based on
some criteria.

You will note from the above that evaluation is generally the highest form of thinking and learning skill and is therefore the most important behaviour. This, as
implied already, accounts for the poor performance of students and people generally on tasks that call for evaluative thinking. Give your students lots of chances
to do evaluative thinking.
The action verbs provided under the various profile dimensions and in the specific objectives of the syllabus should help you to structure your teaching such as to
achieve the effects needed. Select from the action verbs provided for your teaching, in evaluating learning before, during and after the instruction. Use the action
verbs also in writing your test questions.
FORM OF ASSESSMENT
It must be emphasized again that it is important that both instruction and assessment be based on the profile dimensions of the subject. In developing assessment
procedures, select specific objectives in such a way that you will be able to assess a representative sample of the syllabus objectives. Each specific objective in
the syllabus in considered a criterion to be achieved by the student. When you develop a test that consists of items or questions that are based on a
representative sample of the specific objectives taught, the test is referred to as a Criterion-Referenced Test. In many cases, a teacher cannot test all the
objectives taught in a term, in a year, etc. The assessment procedure you use i.e. class tests, home work, projects, etc. must be developed in such a way that it
will consist of a sample of the important objectives taught over a period.
The West African Examinations Council (WAEC) generally set two papers 1 and 2 at the WASSCE. Paper 1 is a objective test and Paper 2, a compulsory case
study and structured questions. Try to emulate this by developing an objective test paper (paper 1) that consists of fifty items. Paper 2 is a 2 hour paper. It

vii

consists a compulsory case study question and seven other essay questions out of which candidates will be expected to answer any three. The case study
question will carry 25 marks while other questions carry equal marks of 15 each.
The last row shows the weight of the marks allocated to each of the three test components. The two papers and continuous assessment are weighted differently.
Paper 1, the objective test paper is weighted 30%. Paper 2 is a more intellectually demanding paper and is therefore weighted 70%. The percentages in the last
row show the contribution of each test paper to the total marks in the examination.

Each of the dimensions has been given a percentage weight that should be reflected in teaching, learning and testing.
DISTRIBUTION OF EXAMINATION PAPER WEIGHTS AND MARKS
Dimensions

Paper 1

Paper 2A

Paper 2B
-

Continuous
Assessment
90

Total
Marks
140

Weight of
Dimensions
47

Knowledge and Understanding

30

20

Application of Knowledge
Total Marks
% Contribution of Papers

10
40
14

40
60
21

100
100
35

90
30

150
290
-

53
100

The total number at the bottom of columns 2 and 3 are the weights for Paper 2. The numbers in the cells of papers 1 and 2 indicate the marks to be allocated to
the items/questions that test each of the dimensions in the first column. The last column shows the total marks allocated to each of the dimensions. Note that the
column numbers agree with profile dimension weights already provided.
GRADING PROCEDURE
To improve assessment and grading and also introduce uniformity in schools, it is recommended that schools adopt the following grade boundaries for assigning
grades on students test results.
Grade A:
Grade B:
Grade C:
Grade D:
Grade E:
Grade F:

80 - 100%
70 - 79%
60 - 69%
45 - 59%
35 - 44%
34% and below

Excellent
Very Good
Good
Pass
Weak
Very Weak

In marking your class examination scripts, it is important that you develop a marking scheme. A marking scheme, consists of the points for the best answer you
expect for each question and the marks allocated for each point raised by the student as well as the total marks for the question. For instance, if a question carries
20 marks and you expect 6 points in the best answer, you could allocate 3 marks or part of it, depending on the quality of the points raised by the student, totaling
18 marks. The remaining 2 marks or part of it could be for organisation of the answer. For objective test papers, you may develop an answer key to speed up the
marking.
In assigning grades to students test results, you may apply the above grade boundaries and the descriptions which indicate the meaning of each grade. The grade
boundaries are also referred to as grade cut-off scores. For instance, the grade cut-off score for a B grade is 70% in the example. When you adopt a fixed cut-off
score grading system as in this example, you are using the criterion-referenced grading system. By this system, a student must make a specified score to be
awarded the requisite grade. This system of grading challenges students to study harder to earn better grades. It is therefore more useful for achievement testing

viii

and grading than the norm-referenced testing system of grading in which the grades are based on the rank order of students marks i.e. where the best score in a
class, no matter its quality, gets an A.

GUIDELINES FOR SCHOOL-BASED ASSESSMENT (SBA)

The arrangements for continuous assessment may be grouped in categories as follows: Projects, Class Tests, Homework and Terminal Test.
1.

Projects: These are tasks assigned to students to be completed over an extended time.
These will include the following:
i)
practical work
ii)
investigative study (including case study)
A report must be written for each project undertaken.

2.

Class Tests: These will essentially consist of written assignments covering topics/units completed at some specific period within the term.

3.

Home Work: This is an assignment to be completed within a day or a couple of days. Homework may consist of essays, summaries and other problems to
be solved.

4.

Terminal Test: A terminal test is a summative evaluation method for assessing the subjects content, skills and the profile dimensions taught. In developing
the terminal test, ensure that the test will have high-content validity by adopting the criterion-referenced testing approach.

ix

SENIOR HIGH SCHOOL - YEAR 2 - TERM 1

SECTION 1
SCOPE OF COST ACCOUNTING
General objectives: The student will:
1.
2.
3.
UNIT

appreciate the role of Cost Accounting in managing business.

be aware of the differences between cost accounting, management accounting and financial accounting.
be predisposed to the installation, merits and demerits of cost accounting in business and industry.

SPECIFIC OBJECTIVES

CONTENT

TEACHING AND LEARNING

ACTIVITIES

UNIT 1

The student will be able to:

MEANING OF COST
ACCOUNTING

1.1.1

explain cost accounting and

its functions.

Meaning and functions of cost

accounting.

discuss the meaning and the functions of

cost accounting.

1.1.2

outline differences among

cost accounting,
management accounting
and financial accounting.

Differences among cost accounting,

management
accounting and
financial accounting.

discuss Cost Accounting, Management

Accounting, Financial Accounting and
draw their differences.

1.2.1

state the characteristics of a

good costing system.

Characteristics of a good costing

system
eg. cost information should be:
1. simple,
2. relevant,
3. cost effective, and
4. accurate.

discuss the characteristics of a good

costing system .
Note: invite the schools accounts officer
to discuss with students the installation
and purposes of the costing system in the
school administration, stores and the
kitchen.

1.2.2

explain the factors and

purposes of installing cost
accounting system in
industries and other small
businesses.

Factors and purposes of installing

cost accounting system.

brainstorm to come out with

the importance of costing to small
businesses.

EVALUATION

Assist students to:

Mention the functions of
cost accounting.

UNIT 2
CHARACTERISTICS
OF A GOOD
COSTING SYSTEM

Write reports on findings.

UNIT

SPECIFIC OBJECTIVES

CONTENT

TEACHING AND LEARNING

ACTIVITIES

UNIT 3

The student will be able to:

BASIC COSTING
TERMINOLOGIES

1.3.1. outline the differences

between costing terms.

Basic costing terminologies eg:

Cost center
Cost apportionment
Cost allocation
Cost accumulation
Cost audit
Cost object
Cost reduction
Cost drivers
Cost estimation,
Cost unit.

Assist students to discuss the various

components of costs mentioned.

1.4.1.

explain types of cost.

Types of cost
e.g.:
Direct cost
Indirect cost
Conversion cost
Notional cost
Relevant cost
Irrelevant cost
Traceable cost
Untraceable cost
Sunk cost
Historical cost
Opportunity cost
Product cost
Period cost
Incremental cost
Joint cost
Imputed cost.
Avoidable cost
Unavoidable cost
Controllable cost
Uncontrollable cost

Group students to list the cost of items

required for the term in the school and
let them stress on the importance of
needs as against wants.

1.5.1.

explain qualities of good

cost information.

Qualities of good cost information

e.g.: Qualities of good cost information
should be:
Comparable
Timely
Brief
Objective

Assist students to brainstorm to come

out with the qualities of good cost
information to management and
industries.

UNIT 4
TYPES OF COST

UNIT 5
QUALLITIES OF
GOOD COST
INFORMATION

EVALUATION

Apply the
terminologies in
simple computation of
cost items.

Mention four qualities

of good cost
information.

SENIOR HIGH SCHOOL - YEAR 2 - TERM 2

SECTION 2
CLASSIFICATION OF COST
General objectives: The student will:
1.
2.
UNIT

Acquire knowledge of how costs are classified.

be aware of the differences between the elements of cost.

SPECIFIC OBJECTIVES

CONTENT

TEACHING AND LEARNING

ACTIVITIES

EVALUATION

UNIT 1

The student will be able to:

METHODS OF COST
CLASSIFICATION

2.1.1 classify cost correctly.

Cost classification eg.

behaviour
function
nature
controlling
time
relation to product
normality, etc.

visit well established organizations and

identify the classification of cost.

Classify costs from a

given data.

2.1.2 apply the components of cost

build-up in costing methods
and techniques of ascertaining
the cost/profit of an activity or
product.

Explain the following in relation to

business activities:
prime cost
overheads
factory cost
cost of production
cost of sales
total cost

discuss the various components of cost

identified and compute costs using
examples.

Compute costs from

set examples.

Assist learners to:

Computation of cost
Direct material cost
Direct labour cost
Direct expenses
Prime cost
Add Production Overheads
Cost of production

GH
xx
xx
xx
xxx
xx
xxx

UNIT

SPECIFIC OBJECTIVES

UNIT 2

The student will be able to:

ELEMENTS OF
COST

2.2.1 define the elements of cost.

CONTENT

TEACHING AND LEARNING

ACTIVITIES

Elements of cost:
Material
Labour
Expenses

EVALUATION

Guide students to analyze the elements of costs:

TABLE ANALYSING ELEMENTS OF COST
Material cost = Direct material cost
cost
+
+

+ Indirect material

Wages

+ Indirect wages

= Direct wages

Expenses

Direct Expenses

+ Indirect Expenses

Total cost

Prime cost

+ Overheads

Show the
distinction
between material
cost, labour cost
and expense.

SENIOR HIGH SCHOOL - YEAR 2 - TERM 3

SECTION 3
ACCOUNTING FOR MATERIALS
General objectives: The student will:
1.
2.
3.
UNIT

appreciate the need to control cost of materials.

acquire the skill of keeping accurate and appropriate records on materials.
develop the ability to compute VAT payable on materials to the VAT Service.

SPECIFIC OBJECTIVES

CONTENT

TEACHING AND LEARNING

ACTIVITIES

UNIT 1

The student will be able to:

MATERIAL
CONTROL

3.1.1 identify purchasing

procedures.

Definition of material, its purchasing

procedures and documents used.

Guide students in groups to visit the

schools store or any firm to identify how
materials are received into stores before
issuing them.

3.1.2 receive and inspect

materials.

Reception and inspection of materials

and the documents involved.

Using actual material control forms, guide

students through the procedure for
receiving and inspecting materials in
organisations

3.1.3 identify the steps used in

issuing materials.

Issue of materials and documents

involved.

Guide students through the steps in the

issuing of materials

3.2.1 define store keeping.

Meaning of store keeping

Discuss the meaning of storekeeping

3.2.2 identify the functions of the

store Keeper.

Activities involved in store keeping.

receiving of materials
recording of materials
keeping and protecting of
materials
issuing of materials

Through brainstorming, assist learners to

mention the functions of the store keeper.

UNIT 2
STORES KEEPING

Guide students to discuss the points

raised.

EVALUATION

Write findings and

answer questions from
the teacher.

UNIT

SPECIFIC OBJECTIVES

CONTENT

TEACHING AND LEARNING

ACTIVITIES

UNIT 2 (CONTD)

The student will be able to:

STORES KEEPING

3.2.3 state the need for

classification and coding of
materials.

Reasons for Classification and coding

of materials in store.

visit a nearby store and guide them to group

the items according to common and nature and
assign code names to them.

3.2.4 state the differences between

continuous stock taking and
periodic stock taking.

Stock taking:
continuous stock taking and
perpetual inventory system.
Periodic stock taking

Discuss the systems to come out with the

differences between them.

3.2.5 identify the various

documents used in
recording stock

EVALUATION

Assist students to:

Documents used in
recording stock:
-

Note: assist students to brainstorm to come out

with advantages and disadvantages of each
method.
Using live copies, discuss the documents with
listed students.

inspection report
goods received note
bin card
stock record card
stores ledger card
material requisition note
material returned note
purchase requisition note,
etc.

List all items under

the code names
given.

List five differences

between continuous
stock taking and the
periodic stock taking.

Make copies of any

three documents
used in stores.

visit the school stores to study the types of

documents used in stores recording.
Note: Advise students against over and under
invoicing to maintain honesty in their field
of work.

3.2.6 state the user, purpose and

origin of stores documents.

User, purpose and origin of stores

documents.

discuss user, purpose and origin of stores

documents.
Note: state the reasons why the various
stores
documents are raised.

Mention users of the

documents.

3.3.1 identify the various formulae

for calculating stock
control levels.

Define stock levels:

maximum stock level
minimum stock level
re-order level
reorder/Economic Order
quantity
average stock level.

calculate stock levels.

Eg. Reorder level = Maximum consumption X
Maximum leadtime

Mention the formulae

used in computing
stock levels.

3.3.2 explain the characteristics,

application and benefits of
just-in-time

Characteristics, Application and

benefit of just-in-time.

Guide students to discuss the characteristics,

application and benefits of just-in-time.

UNIT 3
STOCK CONTROL
LEVELS

UNIT

SPECIFIC OBJECTIVES

UNIT 4

The student will be able to:

MATERIAL
PRICING AND
STOCK
VALUATION

3.4.1 prepare stores ledger

accounts to ascertain the
value of closing stocks

CONTENT

Material pricing methods:

First in First out (FIFO)
Last in First out (LIFO)
Weighted average
Simple average
Standard price
Replacement price

TEACHING AND LEARNING

ACTIVITIES

EVALUATION

Assist students to solve questions under material

pricing using the following format:
STORES LEDGER CARD
Date

Receipts
Qty Rate Amt

Issues
Qty Rate Amt

Solve questions
from given data
using different
pricing methods.

Balance
Qty Amt

Characteristics, advantages and

disadvantages of each method

Note: Teacher should not teach LIFO method since

it is now prohibited by international Financial
Reporting Standards ((IFRS) as a method of valuing
stock.

UNIT 5
VALUE ADDED
TAX (VAT)

3.5.1 compute Value Added Tax

(VAT) on input and on output of
materials/products.

Value Added Tax (VAT):

Definition
Input VAT
Output VAT
Net VAT payable to VAT
Service

Calculate VAT on input and on output. Eg.

Question:
1/8/2008 BB & Co buys raw materials from a VAT
registered wholesaler at GH2,000 plus VAT at
15%: Value of inputs (excluding VAT)
22/8/2008 BB & Co sells goods to XYZ and Sons
plus VAT at 15%. Value of outputs (excluding VAT)
is GH2,600.
Calculate the VAT payable to the VAT Service by
BB & Co.
Solution:
VAT movements:
Input VAT (15% x GH2,000)
Output VAT (15% X GH2,600)
Net VAT payable to VAT Service

GH
300
390
90

Solve specimen
examination
questions.

SENIOR HIGH SCHOOL - YEAR 3 - TERM 1

SECTION 1
ACCOUNTING FOR LABOUR
1.
2.
3.
4.
UNIT

General objectives: The student will:

appreciate the need to cost labour and keep accurate records of labour attendance.
be aware of the causes and effects of labour turnover in organizations
develop skills in preparing payroll and pay slip.
acquire skills in making journal entries from payroll and post to ledger

SPECIFIC OBJECTIVES

CONTENT

TEACHING AND LEARNING

ACTIVITIES

UNIT 1

The student will be able to:

LABOUR
ACTIVITY

1.1.1

identify types of labour

activities in organizations.

Types of labour activities.

production
productivity
effect of productivity and
cost
automation

Assist students to discuss types of labour activities

under taken in organizations for costing purposes.

1..1.2

identify basic labour activity

ratio

Labour activity ratio

efficiency
capital
production volume ratio

Assist students to mention types of labour and

group them under direct and indirect labour.

Calculate the
labour cost for each
method using
formulae given by
the teacher.

UNIT 2
LABOUR
REMUNERATION

EVALUATION

1.2.1

1.2.2

differentiate between direct

labour cost and indirect
labour cost.

identify the various

methods of labour
remuneration.

Types of labour cost:

Direct labour cost
Indirect labour cost

Methods of labour remuneration:

Time rate
Piece rate i.e. straight
piece work, differential
piece rate and high day
rate system.

Assist students to discuss the circumstances under

which the methods are applied, their merits and
demerits.

Write report on
findings.

UNIT

SPECIFIC OBJECTIVES

CONTENT

TEACHING AND LEARNING

ACTIVITIES

EVALUATION

The student will be able to:

1.2.3

outline the advantages and

disadvantages of the
methods of payment

1.2.3

apply the various methods

of payment

Incentive schemes i.e.

premium bonus and
overtime premium.

Design a simple
time sheet.

UNIT 3
TIME KEEPING

1.3.1 explain the various methods

of keeping labour time under
handwritten and clocks.

1.3.2 identify time sheet and job

cards under time bookings.

Methods of time keeping:

- handwritten i.e. time book,
time
register and attendance
register.
- time recording clocks.

Visit the schools staff common room or the

accounts office and other organizations to identify
the various methods of recording labour time.
Assist students to draw the differences between
time sheet and job card.

Time bookings:
- Time sheet
- Job card
Idle time

UNIT 4
LABOUR
TURNOVER
1.4.1

examine the need to maintain

labour in a firm

Labour turnover:
- causes of labour turnover
- cost of labour turnover
- labour turnover Ratio
= No. of employees in a
period replaced in period
Average No. of employees in a period

Guide students to answer questions: eg.

Question
The following data on labour relates to XYZ Ltd.:
1. Employees at the beginning of the period
is 82.
2. Number of employees employed within
the year 24 as replacement
3. Number of employees left in the year
amounted to 28.
Calculate the labour turnover rate.

Using the formula,

calculate the rate of
labour turnover
from questions by
the teacher.

UNIT

UNIT 4

SPECIFIC OBJECTIVES

The student will be able to:

.

LABOUR
TURNOVER
(CONTD)

CONTENT

Note: The emphasis is on

replaced labour in the
numerator. If staff left and
were nor replaced, this
implies redundancy

TEACHING AND LEARNING ACTIVITIES

EVALUATION

Solution:

Compute payroll
from a given data.

24______ x 100
(82 + 78) 2

24
80

x 100

= 30%
UNIT 4
1.4.1

differentiate between
payroll and pay slip.

1.4.2

identify items in the

payroll and pay slip.

PAYROLL
ACCOUNTING

Payroll and pay slip

basic pay
allowances
taxable pay
PAYE deduction
SSF deduction
Non-statutory
deduction
Net pay.

Discuss the various components of payroll and pay slip with students
and guide them to prepare wages analysis sheet using excel on
computer.
Comprehensive payroll format:
Payroll
NAME OF
EMPLOYEES

BASIC PAY
HRS RATE TOTAL

XX

1.4.3

1.4.4

prepare payroll from

given data.
prepare journal from
payroll and post to
the ledger.

Preparation of wages
analysis sheet

OVERTIME/ GROSS

XX

XX

BONUS

(add)

PAY

SSF

xx

(less)

ALL TAXABLE

TAXABLE

ALLOWANCES

PAY

(add)

xx

TAX

(less)

(CONTD)
INCOME
AFTER TAX

xx

ALL NONTAXABLE
ALLOWANCES
(add)

OTHER DEDUCTIONS
HEALTH
PROVIDENT
FUND
(less)

XX

etc

TOTAL
DEDUCTIONS

xx

xx

NET
PAY

XX

Note: Discuss with students the effects of fraud and ghost names on the
employees, organization and the nation as a whole.

SENIOR HIGH SCHOOL - YEAR 3 - TERM 2

10

SECTION 2
ACCOUNTING FOR OVERHEADS
General objectives: The student will:

UNIT

1. appreciate the need to analyze and distribute overheads to production and service cost centres
2. acquire knowledge of how to absorb overheads into production units.
SPECIFIC OBJECTIVES
CONTENT
TEACHING AND LEARNING
ACTIVITIES

UNIT 1

The student will be able to:

ANALYSIS OF
OVERHEADS

2.1.1 define overheads.

Definition of overheads

2.1.2 explain types of overheads.

Types of overheads:
- factory overheads
- administration overheads
- selling overheads
- distribution overheads
- financial overheads

2.1.3 identify the appropriate basis

used to apportion overheads
fairly to cost centres.

Basis of overhead apportionment

2.1.4 allocate overheads to production

and service cost centres.

Overheads distribution:
- primary distribution
- redistribution of service centre
costs to production centres.

2.1.5 apportion overheads to

production and service cost
centres.

Apportioning of overheads to production

and service centres

Guide learners to prepare overheads

analysis sheet using excel on computer (if
available).

2.1.6 redistribute service department

overheads to production cost
centres.

Redistribution of service department

overheads to production cost

Guide students to discuss the redistribution

of service department overheads to
production cost.

11

EVALUATION

Group students according to departments

and ask them to list types of overheads that
relate to their departments. Discuss their
answers in class.

Prepare overhead
analysis sheet from a
given data.

Assist learners to discuss the common

basis of apportionment. Eg.

Mention some
overheads and ask
students to write down
their bases.

Overhead
Rent
Canteen
Electricity
Stores

Basis
Area/Floor space
No. of employees
Area/metre reading
No. of requisitions

UNIT

SPECIFIC OBJECTIVES

CONTENT

TEACHING AND LEARNING

ACTIVITIES

UNIT 2

The student will be able to:

ABSORPTION OF
OVERHEADS

2.2.1 explain the concept of overhead

absorption rates.

Absorption of overheads:
- overhead absorption rates

Assist learners to to discuss how to

compute overhead absorption rates.

2.2.2 describe the various types of

overhead absorption rates.

Types of Overhead Absorption Rates:

- Direct wages percentage
- Direct material cost percentage
- Machine hour OAR
- Prime cost percentage
- Direct labour hour OAR
- Production units

Assist learners to calculate Overhead

Absorption Rates (OAR)

2.2.3 describe the circumstances under

which the methods are applied.

Circumstances under which the various

Overheads Absorption Rates are used.

Discuss with students the circumstances

under which the OAR methods are applied.

2.2.4 absorb overheads into cost of

products and services.

Computation of over/under absorption

of overheads:
- over/under absorbed overheads.
- effects of over/under absorbed
overheads on costing profit and
loss.

Assist learners to calculate over/under

absorption of overhead and transfer to
Costing Profit and Loss Account.

2.2.5 calculate over/under absorption of

overheads.

12

EVALUATION

Calculate overhead
absorption rates from a
given data.
Compute OAR from a
given data.

Basic formula: Budgeted OAR =

Total budgeted overheads of cost centre
Total budgeted absorption base applicable
to cost centre
Answer questions given
by the teacher.

SENIOR HIGH SCHOOL - YEAR 3 TERM 2

SECTION 3
COSTING METHODS FOR PRICING (1)
General objective: The student will:
1. appreciate the Job/Batch as a method of ascertaining cost and price.
UNIT

SPECIFIC OBJECTIVES

UNIT 1

The student will be able to:

JOB/BATCH
COSTING

3.1.1 explain the terms Job/Batch

costing.

CONTENT

TEACHING AND LEARNING

ACTIVITIES

EVALUATION

Assist learners to:

Definition, characteristics and purposes
of Job/Batch costing.

design Job cost sheet from a given data.

Format:
Job Cost Sheet
Direct material
Direct labour
Direct Expenses
Prime Cost
Overheads
Total cost
Profit margin
Selling price

xx
xx
xx
xx
xx
xx
xx
xx
==

3.1.2 state the purpose and

circumstances under which
Job/Batch costing will be
applicable.

Advantages of job costing

Ascertainment of Job/Batch cost.

3.1.3 prepare job cost sheet.

Preparation of Job cost sheet

apply job/batch costing in calculating the

cost of a job or batch under small scale
business.

3.1.4 ascertain the cost of Job/Batch

from given data.

Ascertaining cost of job/batch

Assist students to discuss how to

ascertain the cost of job/batch costs.

13

Answer questions given

by the teacher.

Students prepare job cost

sheet from given data.

SENIOR HIGH SCHOOL - YEAR 3 TERM 3

SECTION 4
COSTING METHODS FOR PRICING (2)
General objective: The student will:

UNIT 1

1. be predisposed to the methods of ascertaining cost, revenue and profit in the construction industry.
2. acquire knowledge of the basis of pricing in the service industry.
3. appreciate the use of Process Costing in ascertaining cost of goods produced in the processing industry.
4. acquire knowledge in the use of activity based costing
SPECIFIC OBJECTIVES
CONTENT
TEACHING AND LEARNING
EVALUATION
ACTIVITIES
The student will be able to:
Assist students to:

CONTRACT
COSTING

4.1.1 define the term Contract

Costing.

Definition, features and conditions

under which contract costing may
be applied.

visit a construction site and observe the

process.

4.1.2 state the characteristics of

contract costing.

Characteristics of contract costing

discuss the characteristics of contract

costing.

4.1.3 explain the terms associated with

Contract costing

- Procedures and terms used in

contract costing e.g.; material,
retention, stage of completion,
contract revenue, contract cost of
sale, recognized profit, value of work
certified, progress billings, progress
payment and work in progress.

Discuss the meaning of the terms listed

under content.

Work exercises from a

given data.

4.1.4 prepare contract account.

preparation of Contract Account and

Contractees Account

prepare contract accounts.

Students prepare contract

account with given
information.

4.1.5 determine contract revenue,

contract cost of sales and
profit/loss on contract.

Determination of relevant income

statement entries (Contract
Revenue, Contract Cost of Sale,
Recognised Profit )

determine contract revenue, contract

cost of sales and profit/loss on contract.

4.1.6 prepare contractees account .

Determination of relevant Balance

Sheet Extracts (Work in Progress,
Receivable from contractee,
Closing Inventories, Accruals and
Prepayments

Prepare contractees account

UNIT

14

Write report on their visit

UNIT

SPECIFIC OBJECTIVES

CONTENT

TEACHING AND LEARNING

ACTIVITIES

EVALUATION

UNIT 2

The student will be able to:

SERVICE
COSTING

4.2.1 explain the term Service Costing

Definition of service costing

discuss the meaning of service costing.

4.2.2 identify organizations where

service costing would be
appropriate.

Organizations where service costing will

be appropriate.
eg. Hospitals, Transport, Catering,
Educational institutions.

visit some service organizations within

the locality to observe the costing of
services.

Present reports on
observation.

4.2.3 identify the objectives and

limitations of service costing as
applied to a particular
organization.

Objectives and limitations of service

costing.

Discuss objectives and limitations of

service costing.

State four objectives and

four limitations of service
costing.

Determination of records and costs in a

standardized unit of measurement.

determine the nature of records

to be kept and costs to compute
for a period which may
conveniently be averaged in
relation to a standardized unit of
measurement

4.2.5 ascertain the cost per unit for

service rendered.

Ascertainment of cost per unit of service

rendered where:
one rate is used
more than one rate are
involved.

demonstrate the computation of service

costs using data from various service
organizations.

Work exercises from given

data.

4.3.1 explain the concept of process

costing.

Definition and characteristics of process

costing.

Discuss the meaning of the concept of

process costing.

Present report on
observation.

4.3.2 explain the purposes of process

costing and indicate the
circumstances under which it
could be applied.

Purposes and circumstances under

which process costing is applicable.

Note: embark on educational visit to an

entity in the locality that uses process
costing.

4.2.4 determine the nature of records

to be kept and costs to compute
in a standardized unit of
measurement.

Assist students to:

UNIT 3
PROCESS
COSTING

15

UNIT

SPECIFIC OBJECTIVES

CONTENT

TEACHING AND LEARNING

ACTIVITIES

EVALUATION

UNIT 3 (CONTD)

The student will be able to:

PROCESS
COSTING

4.3.3 explain the terms associated

with process costing.

Definition of terms:
Joint products
by - products
scrap
waste
abnormal loss
abnormal gain
equivalent units.

identify some manufacturing firms that use process

costing eg. breweries, bottling companies, oil refining
companies, etc.

4.3.4 calculate completed units and

work-in-progress from given
data using FIFO and weighted
average methods.

Equivalent units calculation.

prepare process accounts and compute cost per unit in a

given process.

4.3.5 prepare statement of production

cost and evaluation from given
information.

Statement of production cost.

prepare statement of production and evaluation using

given information

4.3.6 determine normal and abnormal

loss, scrap, wastage and
abnormal gain.

Normal loss, abnormal loss,

scrap, wastage and abnormal
gain calculation.

determine normal and abnormal loss, scrap, wastage and

abnormals
Process Account

Guide students to:

Date Details

4.3.7 prepare process, abnormal loss

and abnormal gain accounts.

Process accounts, abnormal loss

account, abnormal gain account
and scrap sale account.

UNIT 4
ACTIVITY BASED
COSTING

4.4.1 explain activity based costing

Meaning of Activity Based

costing(ABC)
The ABC system assumes that
activities cause costs and that
products create the demands for
activities. A link is made between
activities and products by
assigning costs of activities to
products based on an individual
products consumption or
demand for each activity.

16

Material
Labour
Expenses
Overheads
Abnormal gain

Qty

Unit/
Cost

Amt

xx
xx
xx
xx
xx

xx
xx
xx
xx
xx

xx
xx
xx
xx
xx

xxx

xxx

xxx

xxx xxx

xxx

== ==

==

== ==

==

discuss the meaning of ABC

Date

Details

Work exercises
from a given data.

Normal loss
Abnormal loss
Transfer to
next process

Qty

Unit/
Cost

Amt

xx
xx

xx
xx

xx
xx

xx

xx

xx

UNIT

UNIT 4(CONTD)

SPECIFIC OBJECTIVES

CONTENT

The student will be able to:

ACTIVITY BASED
COSTING

TEACHING AND LEARNING

ACTIVITIES
Guide students to:

The ABC system simply recognizes that

businesses must understand the factors that
drive each major activity, the cost of
activities and how activities relate to the
products.
4.4.2 describe the limitations of
the product costing system.

Limitations of the traditional product

Costing system.

discuss the limitations of the traditional product

costing system.

4.4.2 outline the step in the ABC

System.

Steps in the ABC system

Identifying the major activities that
takes place in an organization
Creating a cost pool/cost centres
for each activity
Determining the cost drive for
each major activity.
Assigning the cost of activities to
products according to the
products demand for activities.

work through an example to determine the cost

per unit using both the traditional product costing
system and the ABC system.

Differences between ABC and TPC systems

4.4.3 describe the differences

between ABC and the
traditional product costing
system.

Computation of product/service costs using

an abc system.

4.4.4 compute product/service

costs using an activity based
system

discuss the differences between the activity

based costing system and the traditional product
cost system.

Compute product/service cost using abc system

17

EVALUATION

SENIOR HIGH SCHOOL - YEAR 4 - TERM 1

SECTION 1
COSTING TECHNIQUES FOR CONTROL AND DECISION (1)
General objectives: The student will:
1.
2.
UNIT

appreciate the use of marginal costing technique in decision making.

acquire skills in constructing and interpreting traditional breakeven chart.

SPECIFIC OBJECTIVES

CONTENT

TEACHING AND LEARNING

ACTIVITIES

UNIT 1

The student will be able to:

MARGINAL AND
ABSORPTION
COSTING

1.1.1

explain Marginal Costing

and Absorption Costing.

Definition, explanation and distinguishing

features of Marginal Costing and
Absorption Costing.

discuss the relationship between costs,

revenue and profits at various levels of
activity.

1.1.2

explain the following terms:

fixed cost, variable cost,
semi-variable cost,
contribution, break-even
point, margin of safety etc.

Meaning of terms associated with Marginal

costing.

discuss the standard definitions of the

terms.

1.1.3

prepare income statement

from a given data using both
Marginal Costing approach
and Full Absorption Costing
approach.

Preparation of income statement using

both Marginal Costing and Absorption
Costing.

prepare income statement using

Marginal Costing approach and
Absorption Costing approach.

1.2.1

define break-even analysis.

Meaning and importance of break-even

analysis.

discuss uses of break-even analysis.

Eg. - helps in fixing prices.
- used in decision making.
- used to determine the level above
which profit will be made or
below which losses will be
incurred.

1.2.2

outline the importance of

break-even analysis.

Importance of break-even analysis

discuss the importance of break-even

analysis

UNIT 2
BREAK EVEN
ANALYSIS

EVALUATION

Assist learners to:

18

Answer questions relating

to differences between
Marginal Costing and
Absorption Costing.

Answer questions relating

to calculation of breakeven analysis.

UNIT

SPECIFIC OBJECTIVES

CONTENT

TEACHING AND LEARNING

ACTIVITIES

UNIT 2 (CONTD)

The student will be able to:

BREAK EVEN
ANALYSIS

1.2.3

list the assumptions and

limitations of break-even
analysis.

Assumptions and limitations of

break-even analysis.

discuss the assumptions and limitations underlying

break-even analysis

1.2.4

determine break-even point

in units and values.

- Computation of break-even point

in units and value.

discuss how break-even points are

determine/computed in units and value.

EVALUATION

Assist students to:

Mention five
assumptions and five
limitations of
breakeven analysis.

- C/S Ratio and margin of safety.

1.2.5

determine fixed cost and

variable cost from mixed
cost.

- Segregating mixed cost into fixed

and variable .

Mention methods of segregating mixed cost and

guide students to determine fixed and variable
costs using only High and Low method.

1.3.1

use graphical presentation

to determine break-even
point.

- Graphical presentation of breakeven points (traditional and

contribution charts)

Guide students to draw and interpret the traditional

and contribution break-even charts.

UNIT 3
BREAK EVEN
CHART

Eg. Traditional or Conventional break-even

chart
1.3.2

1.3.3

Interpret break-even charts.

explain and calculate the

contribution/sales ratio and
demonstrate its use in
calculating sales, profit and
break-even point.

- Interpretation of break-even
charts with particular reference to
margin of safety, angle of
incidence, break-even point, total
cost line, fixed costs line and
variable cost line, contribution and
profit zones.

Sales/
Cost

Revenue
Margin of
safety

Total cost

BEP
Fixed cost
O

Margin of safety
BEP
Output in units

19

Prepare break-even
charts indicating total
revenue, total cost,
fixed cost, variable
cost, margin of safety,
angle of incidence, etc.

SENIOR HIGH SCHOOL - YEAR 4 - TERM 2

SECTION 2
COSTING TECHNIQUES FOR CONTROL AND DECISION (2)
General objectives: The student will:

UNIT

1. appreciate the role of budgeting and budgetary control in controlling expenditure.

2. understand the relationship between the functional budgets and the master budget
3. be predisposed to Standard Costing process as well as appreciating the role of Standard Costing in decision
making.
SPECIFIC OBJECTIVES
CONTENT
TEACHING AND LEARNING
EVALUATION
ACTIVITIES
The student will be able to:
Guide students to:

UNIT 1
BUDGETING
AND
BUDGETARY
CONTROL

2.1.1 explain the concept of Budgeting

and Budgetary Control,.

Explanation of Budgeting and Budgetary

Control.

differentiate budgeting from budgetary

control.

2.1.2 outline budgeting procedures.

Procedure for preparing budget.

discuss procedure for the preparation for

a budget.

2.1.3 outline the importance of

budgeting as a tool for controlling
business activities.

Importance of budgeting and budgetary

control.

study a master budget prepared by an

entity.

2.1.4 explain the advantages and

disadvantages of budgeting and
budgetary control.

Advantages and disadvantages of

budgeting and budgetary control in
business.

2.2.1 prepare functional budgets

including cash budget .

Functional budgets preparation with

particular reference to the following:
- Sales budget
- Production budget
- Material usage budget
- Material purchase budget
- Labour budget
- Expense budget
- Capital expenditure budget
- Cash budget.

Work exercises to
demonstrate their
understanding.

discuss the advantages and

disadvantages of budget and budgetary
control in business.

UNIT 2
FUNCTIONAL
BUDGETS

2.2.2 explain the relationship between

functional budgets and master
budget.

20

prepare functional budgets from a given

data using excel on computer.

Prepare functional
budgets from given data.
Eg. Cash Budget

UNIT

SPECIFIC OBJECTIVES

CONTENT

TEACHING AND LEARNING

ACTIVITIES

EVALUATION

Assist students to:

The student will be able to:
UNIT 2 (CONTD)
FUNCTIONAL
BUDGETS

2.2.3 explain the concept of principal

budget factor, key factor or limiting
factor in budget preparation.

Principal budget factor and its impact on

budget preparation.

discuss the concept of principal budget

factor in budget preparation

2.2.4 explain the process of budget

administration.

Budget administration:
- Budget committee
- Budget officer
- Budget manual
- Budget implementation
- Budget reporting
- Budget review

discuss the process of budget

administration

2.3.1 define standard costing.

Definition of standard costing.

discuss the meaning of standard costing

2.3.2 distinguish between standard cost

and budgeted cost.

Difference between standard cost and

budgeted cost.

brainstorm to come out with differences

between standard cost and budgeted
cost.

2.3.3 list and explain different types of

standards.

Different types of standards

- Expected/Attainable standards
- Ideal standards
- Basic standards
- Current standards.

Discuss the different types of standards.

Provide report on their

project.

2.3.4 explain reasons why actual cost

may differ from standard cost,
resulting into variances.

The incidence of favourable and adverse

variances for labour costs, material costs
and overheads.

set standards for a chosen business

activity, record actuals periodically,
compute variances, analyze the
resultant variances and brainstorm as to
how to prevent recurrence of adverse
variances.

Calculate variances
from given business
information.

2.3.5 compute direct material cost

Variance, direct labour cost
variance and overhead cost
variance from a given data.

Computation of simple variances involving:

i. Direct Material Cost Variance analyzed
into Price Variance and Usage Variance.

compute variances from a given data.

UNIT 3
STANDARD
COSTING

ii. Direct Labour Cost Variance, analyzed

into Rate Variance and Efficiency
Variance and idle time variance .

21

UNIT

SPECIFIC OBJECTIVES

CONTENT

TEACHING AND LEARNING

ACTIVITIES

The student will be able to:

UNIT 3 (CONTD)
STANDARD
COSTING

2.3.6 outline the importance of

standard
costing and variance analysis.

iii. Overhead Cost Variance, analyzed into

fixed overhead variance and
variable overhead variance.

Importance of standard costing and

variance analysis as management control
tool.

22

Assist students to analyze overhead

variances into fixed and variable.

EVALUATION

SENIOR HIGH SCHOOL - YEAR 4 - TERM 3

SECTION 3
COST BOOK KEEPING
General objectives: The student will:

UNIT

1. be able to prepare cost ledger accounts and extract a trial balance.

2. understand why cost accounting profits may differ from financial accounting profits.
3. understand the concept of reconciliation.
SPECIFIC OBJECTIVES
CONTENT
TEACHING AND LEARNING
ACTIVITIES

UNIT 1

The student will be able to:

COST ACCOUNTS
(INTERLOCKING)

3.1.1 describe various cost

ledger control accounts kept in the
costing books and their
relationship with those in the
financial books.

Cost ledger control accounts and their

relationship with those in the financial
books.

3.1.2 prepare the various cost ledger

accounts from a given data.

Preparation of cost ledger accounts.

prepare cost ledger control accounts.

3.2.1 explain the principle of

interlocking accounts and the
need for reconciliation of cost
accounts and financial accounts.

Explanation of interlocking (nonintegrated) accounting method.

explain the principles of inter locking

accounts.

3.2.2 prepare a statement to reconcile

cost accounting profit and
financial accounting profit.

Reconciliation of cost accounts profit

and financial accounts profit.

EVALUATION

Assist learners to:

list and describe various cost ledger
control accounts

List and describe the

various cost ledger
control accounts.

discuss the relationship between cost

ledger accounts and accounts in the
financial books.

Prepare cost ledger

control accounts from a
given data.

UNIT 2
RECONCILIATION
OF COST AND
FINANCIAL
PROFITS

discuss the need to reconcile cost

accounts and financial accounts.

23

reconcile cost accounting profit and

financial accounting profit.

Solve questions involving

reconciliation of costing
profit and financial profit.

UNIT

SPECIFIC OBJECTIVES

CONTENT

TEACHING AND LEARNING

ACTIVITIES

UNIT 3

The student will be able to:

COST
ACCOUNTS
(INTEGRATED
METHOD)

3.3.1 explain the concept of integrated

accounts.

Explanation of integrated accounting

method.

explain integrated accounting method

(highlighting on how it differs from
interlocking method.)

3.3.2 prepare ledger accounts and

income statement using the
integrated accounts method.

Preparation of ledger accounts and

income statement using integrated
accounting approach.

prepare ledger accounts from a given

data using the integrated accounting
system. .

EVALUATION

Guide learners to:

24

Solve questions involving

preparation of ledger
accounts and income
statement using the
integrated approach. .