M I N I S T RY O F E D U C AT I O N

Republic of Ghana

TEACHING SYLLABUS FOR PRINCIPLES OF COST ACCOUNTING

(SENIOR HIGH SCHOOL (1 - 3)

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: 0302-683668
0302-683651

September, 2010
 TEACHING SYLLABUS FOR PRINCIPLES OF COST ACCOUNTING
RATIONALE FOR TEACHING PRINCIPLES OF COST ACCOUNTING

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-scale 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 designed to help students to:

1. use the concepts of cost in costing and pricing of products and activities.
2. appreciate the need to apply cost accounting principles in everyday life.
3. adopt moral ethics and values in costing and pricing products in all spheres of life.
4. acquire skills and abilities to aid planning, analysis, production, marketing, finance, etc. in various areas in business and personal life.
5. use costing as a means of control and decision making in business and other spheres of life.
6. encourage students to take higher tasks and assignments in cost accounting in the tertiary institutions particularly during the first year of 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 Senior High School.
- It offers adequate foundation to students who will pursue further education in tertiary institutions.
- It provides brighter opportunities for students to undertake professional courses.
-
The syllabus has been grouped into eight sections 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.

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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 level 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 year‟s work consists of a number of sections and
associated units.

The structure and organization of the syllabus for the three year SHS programme is shown overleaf:

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 STRUCTURE AND ORGANIZATION OF THE SHS PRINCIPLES OF COST ACCOUNTING SYLLABUS

SHS 1 SHS 2 SHS 3

TERM 1 TERM 1 TERM 1

SECTION 1: SCOPE OF COST ACCOUNTING SECTION 1: ACCOUNTING FOR OVERHEADS SECTION 1: COSTING TECHNIQUES FOR
CONTROL AND DECISION (2)
Unit 1: Meaning of cost accounting Unit 1: Analysis of overheads
Unit 2: Characteristics of good costing system Unit 2: Absorption of overheads Unit 1: Budgeting and budgetary control
Unit 3: Basic costing terminologies Unit 2: Functional Budgets
Unit 4: Types of cost SECTION 2: Activity Based Costing Unit 3: Standard costing
Unit 5: Qualities of good cost information

TERM 2 TERM 2 TERM 2

SECTION 2: CLASSIFICATION OF COST SECTION 3: COSTING METHODS SECTION 2: COST BOOK KEEPING

Unit 1: Methods of cost classification Unit 1: Job/Batch costing Unit 1: Cost accounts – interlocking
Unit 2: Elements of cost Unit 2: Contract costing Unit 2: Reconciliation of cost and financial profits
Unit 3: Service costing Unit 3: Cost accounts – integrated method
SECTION 3: ACCOUNTING FOR MATERIALS (1) Unit 4: Processing costing
Unit 1: Material control
Unit 2: Stores keeping
Unit 3: Stock control levels

TERM 3 TERM 3

SECTION 4: ACCOUNTING FOR MATERIALS (2)

SECTION 4: COSTING TECHNIQUES FOR
Unit 4: Material pricing and stock valuation CONTROL AND DECISION (1)

SECTION 5: ACCOUNTING FOR LABOUR Unit 1: Marginal Costing and Absorption Costing
Unit 1: Labour activity Unit 2: Break-Even Analysis
Unit 2: Labour remuneration Unit 3: Break-Even Chart
Unit 3: Time keeping
Unit 4: Labour turnover
Unit 5: Payroll accounting

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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 teachers are therefore 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. Assessing the internet facility is an advantage.

GENERAL OBJECTIVES

General objectives have been listed at the beginning of each section. The general objectives specify the skills and behaviours students should acquire as a result
of learning the units of a section. Read the general objectives 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 year‟s 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.
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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. Avoid rote learning and drill-oriented methods and rather, emphasize on participatory teaching and learning. Teachers 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 solve 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, practice 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 must not 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 develop, plan, construct etc. means that the student has learnt to create, innovate or
synthesize knowledge. 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:

Knowledge and Understanding 40%

Application of Knowledge 60%

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The explanation of the dimensions and the key action verbs associated with each profile dimension are as follows:

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.

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,
innovation or creativity 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. 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; 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.

Innovation/Creativity The ability to

put parts together to form a new whole. It involves the ability to synthesize, combine, compile, compose, devise, suggest a new idea or
possible ways, plan, revise, design, organize, create, and generate new solutions. The ability to create or innovate is the highest form of
learning. The world becomes more comfortable because some people, based on their learning, generate new ideas, design and create
new things.

Evaluation The ability to:

appraise, compare features of different things and make comments or judgments, contrast, criticize, justify, support, discuss, conclude,
make recommendations etc. Evaluation refers to the ability to judge the worth or value of some materials, ideas etc., based on some
criteria. Evaluation is a constant decision making activity. We generally compare, appraise and select throughout the day. Every decision
we make involves evaluation. Evaluation is a high level ability just as application, analysis and innovation or creativity since it goes beyond
simple knowledge acquisition and understanding.

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.

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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 is 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, 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 an objective test and Paper 2 being theory and
practice questions. Try to emulate this by developing an objective test paper (Paper 1) that consists of forty items. Paper 2 is a 2 hour 10 minutes paper. It
consists of four essay questions out of which candidates will be required to answer any two in section A and five practice questions out of which three must be
attempted in section B.

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 20%. Paper 2 is a more intellectually demanding paper and is therefore weighted 20%. 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 2 Paper 2 School Based Total Weight of

Section A Section B Assessment Marks Dimensions

Knowledge and 12 8 20 40 80 43
Understanding
-
Application of Knowledge 8 12 40 60 57

Total Marks 20 20 60 40 140 -

-
% Contribution of Papers 14 14 42 30 100

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.

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GUIDELINES FOR SCHOOL-BASED ASSESSMENT (SBA)

A new School Based Assessment system (SBA) will be introduced into the school system in 2011. The new SBA system is designed to provide schools with an
internal assessment system that will help schools to achieve the following purposes:

o Standardize the practice of internal school-based assessment in all Senior High Schools in the country
o Provide reduced assessment tasks for subjects studied at SHS
o Provide teachers with guidelines for constructing assessment items/questions and other assessment tasks
o Introduce standards of achievement in each subject and in each SHS class
o Provide guidance in marking and grading of test items/questions and other assessment tasks
o Introduce a system of moderation that will ensure accuracy and reliability of teachers‟ marks
o Provide teachers with advice on how to conduct remedial instruction on difficult areas of the syllabus to improve class performance.

The arrangement for SBA may be grouped in categories as follows: Project, Mid-Term test, Group Exercise and End of Term Examination.

Project: This will consist of a selected topic to be carried out by groups of students for a year. Segments of the project will be carried out each term toward the final
project completion at the end of the year, The project may consist of

i) Investigative study
ii) Practical work
iii) Case Study

Mid-Term Test: The mid-term test following a prescribed format will form part of the SBA

Group Exercise: This will consist of written assignments or practical work on a topic(s) considered important or complicated in the term‟s syllabus

End-of-Tem Examination: The end-of-term test is a summative assessment system and should consist of the knowledge and skills students have acquired in the
term. The end-of-term test for Term 3 for example, should be composed of items/questions based on the specific objectives studied over the three terms,
using a different weighting system such as to reflect the importance of the work done in each term in appropriate proportions. For example, a teacher may
build an End-of-Term 3 test in such a way that it would consist of the 20% of the objectives studied in Term 1, 20% of objectives studied in Term 2 and
60% of the objectives studied in Term 3.

GRADING PROCEDURE

To improve assessment and grading and also introduce uniformity in schools, it is recommended that schools adopt the following WASSCE grade structure for
assigning grades on students‟ test results. The WASSCE structure is as follows:

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 Grade A1: 80 - 100% - Excellent
Grade B2: 70 - 79% - Very Good
Grade B3: 60 - 69% - Good
Grade C4: 55 - 59% - Credit
Grade C5: 50 - 54% - Credit
Grade C6: 45 - 49% - Credit
Grade D7: 40 - 44% - Pass
Grade D8: 35 - 39% - Pass
Grade F9: 34% and below - Fail

In assigning grades to students‟ test results, you are encouraged to apply the above grade boundaries and the descriptors which indicate the meaning of each
grade. The grade boundaries i.e., 60-69%, 50-54% etc., are the grade cut-off scores. For instance, the grade cut-off score for B2 grade is 70-79% 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 hence a very
useful system for grading achievement tests.

Always remember to develop and use a marking scheme for marking your class examination scripts. 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 upon the quality of the points raised by the
student) to each point , hence totaling 18 marks, and then give the remaining 2 marks or part of it for organization of answer. For objective test papers you may
develop an answer key to speed up the marking.

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 SENIOR HIGH SCHOOL - YEAR 1 - TERM 1
SECTION 1

SCOPE OF COST ACCOUNTING

General objectives: The student will:

1. appreciate the role of Cost Accounting in managing business.

2. be aware of the predisposed differences between cost accounting, management accounting and financial accounting.
3. appreciate the need to install cost accounting in business and Industry.
4. be to the merits and demerits of cost accounting in business and industry.
5. acquire knowledge on types of cost in business and industry.

UNIT SPECIFIC OBJECTIVES CONTENT TEACHING AND LEARNING EVALUATION

ACTIVITIES

UNIT 1 The student will be able to: Assist students to:

MEANING OF COST 1.1.1 explain cost accounting. Meaning of cost accounting: discuss the meaning of cost accounting.
ACCOUNTING
Cost accounting is a system of
ascertaining cost incurred in the
whole organization and relating such
costs to the cost centres or cost units.

1.1.2 explain functions of cost Functions of cost accounting. discus functions of cost accounting Explain the functions of
accounting - ascertainment of cost. cost accounting.
- fixing of selling prices.
- etc. Differentiate between
Cost accounting and
1.1.3 outline differences among Differences among cost accounting, discuss Cost Accounting, Management Financial accounting.
cost accounting, management accounting and financial Accounting, and Financial Accounting
management accounting accounting. and draw their differences.
and financial accounting.
UNIT 2

CHARACTERISTICS
OF A GOOD 1.2.1 state the characteristics of a Characteristics of a good costing discuss the characteristics of a good
COSTING SYSTEM good costing system. system. costing system.
e.g. cost information should be:
1. simple,
2. relevant,
3. cost effective,
4. etc.
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 UNIT SPECIFIC OBJECTIVES CONTENT TEACHING AND LEARNING EVALUATION
ACTIVITIES
The student will be able to: Assist students to:
UNIT 2 (CONT’D)
1.2.2 explain the factors of Factors of installing cost accounting brainstorm to come out with the Write reports on
CHARACTERISTICS installing cost accounting system. factors considered in installing costing findings.
OF A GOOD system in industries and system in small businesses.
COSTING SYSTEM other small businesses.

UNIT 3 1.3.1. explain costing terminologies. Basic costing terminologies e.g.: discuss the various costing Apply the
Cost center terminologies listed. terminologies in
BASIC COSTING Cost unit simple computation of
TERMINOLOGIES Unit cost cost items.
Cost apportionment
Cost allocation
Cost accumulation
Cost reduction
UNIT 4 Cost estimation

TYPES OF COST Types of cost e.g.: discuss the types costs

1.4.1. explain types of cost. - Direct cost
- Indirect cost list the cost of items they require for the
- Conversion cost term in the school.
- Notional cost t
- Traceable cost Note:
- Untraceable cost Let them stress on the importance of
- Sunk cost needs as against wants
- Historical cost
- Opportunity cost
- Imputed cost.
- Avoidable cost
- Unavoidable cost
- Controllable cost
- Uncontrollable cost
UNIT 5

QUALLITIES OF 1.5.1. explain qualities of good Qualities of good cost information brainstorm to come out with the qualities Mention four qualities
GOOD COST cost information. e.g.: Good cost information should be: of good cost information to management of good cost
INFORMATION - comparable and industries. information.
- timely
- brief
- objective

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 SENIOR HIGH SCHOOL - YEAR 1 - TERM 2
SECTION 2

CLASSIFICATION OF COST

General objectives: The student will:

1. acquire knowledge on how costs are classified.

2. be aware of the differences between the elements of cost.

UNIT SPECIFIC OBJECTIVES CONTENT TEACHING AND LEARNING EVALUATION

ACTIVITIES

UNIT 1 The student will be able to: Assist students to:

METHODS OF COST 2.1.1 classify cost correctly. Cost classification e.g. visit well established organizations for a Classify costs from
CLASSIFICATION - behaviour discussion on classification of cost. given data.
- function
- nature
- controlling
- time
- relation to product
- normality, etc.

2.1.2 apply the components of cost Components of cost: discuss the various components of cost Compute cost of
build-up in costing methods - prime cost identified and compute cost of production. production from set
and techniques of - overheads examples.
ascertaining the cost/profit of - factory cost Computation of cost
an activity or product. - cost of production GH¢
- cost of sales Direct material cost xx
- total cost Direct labour cost xx
Direct expenses xx
Prime cost xxx
Add Production Overheads xx
Cost of production xxx
===

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 UNIT SPECIFIC OBJECTIVES CONTENT TEACHING AND LEARNING EVALUATION
ACTIVITIES

UNIT 2 The student will be able to:

ELEMENTS OF 2.2.1 explain the elements of Elements of cost: Guide students to analyze the elements of costs: Show the
COST cost. - Material distinction
- Labour TABLE ANALYSING ELEMENTS OF COST between material
- Expenses cost, labour cost
Material cost = Direct material cost + Indirect material and expense.
cost
+ + +

Wages = Direct wages + Indirect wages

+ + +

Expenses = Direct Expenses + Indirect Expenses

Total cost = Prime cost + Overheads

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 SECTION 3

ACCOUNTING FOR MATERIALS (1)

General objectives: The student will:
1. appreciate the need to control cost of materials.
2. acquire the skill of keeping accurate and appropriate records on materials.

UNIT SPECIFIC OBJECTIVES CONTENT TEACHING AND LEARNING EVALUATION

ACTIVITIES

UNIT 1 The student will be able to: Guide students to:

MATERIAL 3.1.1 explain material. Meaning of material: visit the school‟s store or any firm to Write report on the visit
CONTROL observe how materials are received into for presentation.
All ingredients that go into production stores before issuing them.
direct or indirect to undergo some
processes before turning out in a
desirable consumer or producer
goods.

3.1.2 identify procedures and Purchasing procedures and discuss procedures of purchasing and
documents used in purchasing documents used. prepare the documents.

3.1.3 receive and inspect Reception and inspection of using actual material control forms, discuss
materials. materials. the procedure for receiving and
inspecting materials in organizations.

3.1.4 identify the steps used in Steps in issuing materials. discuss the steps in issuing of materials.
issuing materials.

3.1.5 prepare documents used in Documents used in issuing materials: discuss documents in issuing material. Prepare any three
issuing materials. - material requisition notes documents used in
- material returned notes issuing materials.
- material transfer notes, etc

UNIT 2 3.2.1 explain stores keeping. Meaning of stores keeping discuss the meaning of stores keeping.

STORES KEEPING
3.2.2 identify the functions of the Functions of the store keeper: mention the functions of the store keeper. List five functions of a
store keeper. - receiving of materials store keeper.
- recording of materials discuss the points raised.
- keeping and protecting of
materials
- issuing of materials

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 UNIT SPECIFIC OBJECTIVES CONTENT TEACHING AND LEARNING EVALUATION
ACTIVITIES

UNIT 2 (CONT’D) The student will be able to: Assist students to:

STORES KEEPING 3.2.3 explain the need for Reasons for classification and coding visit a nearby store and guide them to group List all items under
classification and coding of of materials in store. the items according to their similarities and the code names
materials. – To speed up recording of assign code names to them. given.
information about materials.
- To reduce errors in stock taking List five differences
and valuation. etc. between continuous
stock taking and the
3.2.4 explain the differences Methods of stock taking: discuss the types of stocktaking to come out periodic stock taking.
between continuous stock - Continuous stock taking and with the differences between them.
taking and periodic stock perpetual inventory system.
taking. - Periodic stock taking. Note: assist students to brainstorm to come out
with advantages and disadvantages of each
Continuous stocktaking is where method.
materials are physically counted
several times within the year.

Periodic stock taking: It is the

physical counting of stock once in a
year.

3.2.5 identify the various Documents used in recording discuss the listed documents using live copies. Prepare any three
documents used in stock: documents used in
recording stock stores.
- inspection report visit the school stores to study the types of
- goods received note documents used in stores recording.
- bin card
- stock record card Note: Stress the need to avoid over and
- stores ledger card under invoicing to maintain honesty in
- material requisition note their field of work.
- material returned note
- purchase requisition note,

3.2.6 identify the user, purpose and User, purpose and origin of stores discuss user, purpose and origin of stores Mention users of the
origin of stores documents. documents. documents. documents.

Note: State reasons why the various stores

documents are raised.

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 UNIT SPECIFIC OBJECTIVES CONTENT TEACHING AND LEARNING EVALUATION
ACTIVITIES

Assist students to:

UNIT 3

STOCK CONTROL 3.3.1 identify the various formulae for Stock levels: Calculate stock levels: Use the formulae in
LEVELS calculating stock control levels. - maximum stock level E.g. Reorder level = computing stock
- minimum stock level Maximum consumption X Maximum lead time levels.
- re-order level
- average stock level.

reorder/Economic Order
quantity

Use formulae to various stock levels

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 SENIOR HIGH SCHOOL - YEAR 1 - TERM 3
SECTION 4

ACCOUNTING FOR MATERIALS (2)

General objective: The student will:

1. appreciate the need to use the various methods to value stock.

UNIT SPECIFIC OBJECTIVES CONTENT TEACHING AND LEARNING EVALUATION

ACTIVITIES

UNIT 4 The student will be able to: Assist students to:

MATERIAL 4.4.1 prepare stores ledger Material pricing methods: solve questions under material pricing using the Solve questions
PRICING AND accounts to ascertain the - First in First out (FIFO) following format: from given data
STOCK value of closing stock. - Last in First out (LIFO) using different
VALUATION - Weighted average STORES LEDGER CARD pricing methods.
- Simple average
- Standard price Date Receipts Issues Balance
- Replacement price
Qty Rate Amt Qty Rate Amt Qty Amt

4.4.2 identify the characteristics, Characteristics, advantages and come out with the characteristics, advantages and State two
advantages and disadvantages of pricing methods. disadvantages of each method mentioned under advantages and
disadvantages of pricing 4.4.1 two disadvantages
levels each of any three
methods of stock
valuation.

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 SENIOR HIGH SCHOOL - YEAR 1 - TERM 3
SECTION 5
ACCOUNTING FOR LABOUR

General objectives: The student will:

1. appreciate the need to cost labour and keep accurate records of labour attendance.
2. be aware of the causes, effects and computation of labour turnover rates in organizations.
3. develop skills in preparing payroll and pay slip.
4. acquire skills in making journal entries from payroll and posting to ledger.
TEACHING AND LEARNING
UNIT SPECIFIC OBJECTIVES CONTENT ACTIVITIES EVALUATION
UNIT 1 The student will be able to: Assist students to:

LABOUR 5.1.1 identify types of labour Types of labour activities. discuss types of labour activities undertaken in the List types of labour
ACTIVITY activities in organizations. - weeding school. activities in
- cooking organizations for
- sweeping, etc costing purposes.
UNIT 2 discuss the types of labour cost and group them
5.2.1 differentiate between direct Meaning of labor turnover: under direct and indirect labour.
LABOUR labour cost and indirect Direct labour cost is payment made
REMUNERATION labour cost. to direct workers
Indirect labour cost is payment
made to indirect workers

5.2.2 identify the various Methods of labour remuneration: discuss the circumstances under which labour Calculate labour
methods of labour - Time rate / High day rate remuneration methods are applied, their merits and cost for each
remuneration. system. demerits. method of labour
- Piece rate i.e. straight piece remuneration using
work, differential piece rate and formulae given.
piece rate with guaranteed
time rate.
- Incentive schemes i.e.
premium bonus and overtime
premium systems.

5.2.3 outline the advantages and Advantages and disadvantages of discuss advantages and disadvantages of methods
disadvantages of the methods of labor remuneration of labor remuneration.
methods of remuneration. e.g. Time rate –
Advantages:
1. Workers do not rush and for that reason
wastage of materials is reduced.
2. Quality work is produced.
Disadvantages:
1. It needs much supervision
2. There is the problem of fixing the day
rate by management.

9
 UNIT SPECIFIC OBJECTIVES CONTENT TEACHING AND LEARNING EVALUATION
ACTIVITIES

UNIT 3 The student will be able to: Assist students to:

TIME KEEPING 5.3.1 explain the various methods Methods of time keeping: visit the school‟s staff common room, the accounts Design a simple
of keeping labour time under - handwritten i.e. time book, office and other organizations to identify the time sheet.
handwritten and clocks and idle time register and attendance various methods of recording labour time.
time register.
- time recording clocks.

5.3.2 identify time sheet and job Time bookings: draw the differences between time
cards under time bookings and - Time sheet sheet and job card.
UNIT 4 idle time. - Job card
Idle time
LABOUR
TURNOVER 5.4.1 explain labour turnover Meaning of labour turnover: discuss the meaning of labour turnover.
The rate at which employees who
leave are replaced in an
organization.

5.4.2 identify the causes of labour Causes of labour turnover: discuss the causes of labour turnover
turnover. - poor working conditions.
- conflict with management
and among colleagues.
- dismissals, retirement,
redundancy and death.

5.4.3 examine the need to retain Cost of labour turnover: discuss the cost of labour turnover.
labour in a firm. * Cost of advertising, screening and
interviewing applicants for
replacement is high.
* There is clerical cost and
payment of benefits to leavers.
etc.

5.4.4 calculate labour turnover rate. - labour turnover rate answer questions: e.g.

Question Using the formula,

The following data on labour relates to XYZ Ltd.: calculate the rate of
Number of employees at the beginning of the labour turnover
period is 82. from questions by
Number of employees employed within the year is the teacher.
24 while the number of employees who left in
the year is 28. Calculate the labour turnover rate.

10
 UNIT SPECIFIC OBJECTIVES CONTENT TEACHING AND LEARNING ACTIVITIES EVALUATION

UNIT 5 The student will be able to: Solution:

Formula: Labour turnover
PAYROLL = No. of employees replaced per period x 100
ACCOUNTING Average No. of employees in the period

= (24 + 28) ÷ 2 x 100 = 26 x 100 = 32.5%

(82 + 78) ÷ 2 80 =====

Assist students to discuss the meaning of payroll and pay slip.

5.5.1 differentiate between Meaning of payroll and
payroll and pay slip. pay slip.
Payroll and pay slip
- basic pay
Payroll is the wages - allowances
sheet prepared to - taxable pay
5.5.2 identify items in the
payroll and pay slip.
analyze payments - PAYE deduction
made to all workers - SSF deduction
within an organization - Non-statutory deductions
for a particular month or - Net pay.
period.
Discuss the various components of payroll and pay slip with students
Preparation of wages and guide them to prepare wages analysis sheet using excel on
5.5..3 prepare payroll computer.
analysis sheet
from given data.
Comprehensive payroll format:
Payroll Prepare payroll
from a given data.
NAME OF BASIC PAY OVERTIME/ GROSS ALL TAXABLE

EMPLOYEES HRS RATE TOTAL BONUS PAY SSF ALLOWANCES PAY TAX

XX XX XX (add) xx (less) (add) xx (less)

(CONT‟D)

INCOME ALL NON- OTHER DEDUCTIONS TOTAL NET

AFTER TAX TAXABLE HEALTH INSURANCE PROVIDENT etc DEDUCTIONS PAY
ALLOWANCES FUND

xx (add (less) XX xx xx XX

Note: 1. Discuss the effects of fraud and ghost names on employees,

organization and the nation as a whole.
5.5.4 prepare journal from 2. SSF by law is calculated on basic pay.
payroll and post to
the ledger. Assist students to journalize entries made in the payroll

11
 SENIOR HIGH SCHOOL - YEAR 2 - TERM 1
SECTION 1
ACCOUNTING FOR OVERHEADS

General objectives: The student will:

1. appreciate the need to analyze and distribute overheads to production and service cost centres.
2. acquire knowledge on how to absorb overheads into production units.

UNIT SPECIFIC OBJECTIVES CONTENT TEACHING AND LEARNING EVALUATION

ACTIVITIES

UNIT 1 The student will be able to:

ANALYSIS OF 1.1.1 explain overheads. Meaning of overheads: Group students into departments and ask Prepare overhead
OVERHEADS Overheads are the sum total of indirect them to list types of overheads that relate analysis sheet from
1.1.2 explain types of overheads. material cost, indirect wage and to their departments. Discuss their given data.
indirect expenses. answers in class.

Types of overheads:
- factory overheads
- administration overheads
- selling overheads
- distribution overheads
- financial overheads Assist students to discuss the common Mention some
basis of apportionment. E.g. overheads and ask
1.1.3 identify the appropriate basis Basis of overhead apportionment. students to write down
used to apportion overheads - area/floor space Overhead Basis their bases.
fairly to cost centres. - no. of employees Rent - Area/Floor space
- horse power of machines Canteen - No. of employees
Electricity - Area/Metre reading
Stores - No. of requisitions

1.1.4 allocate overheads to production Allocate whole overheads to cost Assist students to discuss how to allocate
and service cost centres. centers. overheads to production and service cost
- Primary distribution centres

1.1.5 apportion overheads to Apportioning of overheads to production

production and service cost and service centres
centres.

12
 UNIT SPECIFIC OBJECTIVES CONTENT TEACHING AND LEARNING EVALUATION
ACTIVITIES

UNIT 1(CONT’D) The student will be able to: Guide students to:

ANALYSIS OF 1.1.6 redistribute service department Overheads distribution: discuss the redistribution of service
OVERHEADS overheads to production cost - redistribution of service centre department overheads to production cost
centres. costs to production centres. using the following
methods:
- Direct distribution
- Continuous distribution
UNIT 2 - Simultaneous equation

ABSORPTION OF 1.2.1 explain the concept of overhead The concept of absorption of discuss the concept of overhead absorption.
OVERHEADS absorption. overheads:
discuss and calculate Overhead Absorption
1.2.2 describe the various overhead Overhead Absorption Rates: Rates (OAR)
absorption rates. - Direct wages percentage
- Direct material cost percentage Basic formula: OAR = Calculate overhead
- Machine hour OAR absorption rates from
- Prime cost percentage Total budgeted overheads of cost centre given data.
- Direct labour hour OAR Total budgeted absorption base applicable
- Production units to cost centre

1.2.3 describe the circumstances under Circumstances under which the various discuss the circumstances under which the
which the OAR are applied. Overheads Absorption Rates are used. OAR methods are applied.

.
1.2.4 compute cost of production Computation of overhead cost of compute overhead cost of production. Answer questions given
production: by the teacher

1.2.5 absorb overheads into cost of Absorption of overhead add absorbed overheads to cost of
products and services. products.

1.2.6 calculate over/under absorption of Computation of over/under absorption compute and calculate over/under
overheads. of overheads: absorption of overhead and transfer to
- over/under absorbed overheads. Costing Profit and Loss Account.
- effects of over/under absorbed
overheads on costing profit and
loss.

13
 SENIOR HIGH SCHOOL - YEAR 2 - TERM 1
SECTION 2
ACTIVITY BASED COSTING

General objective: The student will:

1. acquire knowledge in the use of activity based costing in computing product cost.

UNIT SPECIFIC OBJECTIVES CONTENT TEACHING AND LEARNING EVALUATION

ACTIVITIES

UNIT 1 The student will be able to Assist students to:

ACTIVITY BASED 2.1.1 explain Activity Based Costing Meaning of Activity Based Costing (ABC) discuss Activity Based Costing.
COSTING (ABC)
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.

2.1.2 describe the limitations of Limitations of the Traditional Product discuss the limitations of the Traditional Students to outline
the Traditional Product Costing costing system: Product Costing system. four limitations of
system.(TPC) - Very few bases are used to absorb TPC system.
overheads
- Cost of products arrived at may not
be realistic. etc.

2.1.3 outline the steps in the ABC Steps in the ABC system: discuss the steps in developing Activity Based List the steps in
System. - Identifying the major activities that Costing system. developing ABC
take place in an organization. system.
- 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.

2.1.4 describe the differences Differences between ABC and TPC systems discuss the differences between the Activity
between ABC and the Based Costing system and the Traditional
TPC system. Product Costing system.

2.1.5 compute product/service Computation of product/service costs using compute product/service cost using ABC
costs using an activity based an ABC system. system
system.
s

14
 SENIOR HIGH SCHOOL -YEAR 2 TERM 2
SECTION 3
COSTING METHODS
General objective: The student will:
1. appreciate the Job/Batch as a method of ascertaining cost and price.
2. be predisposed to the methods of ascertaining cost, revenue and profit in the construction industry.
3. acquire knowledge of the basis of pricing in the service industry.
4. appreciate the use of Process Costing in ascertaining cost of goods produced in the processing industry.

UNIT SPECIFIC OBJECTIVES CONTENT TEACHING AND LEARNING ACTIVITIES EVALUATION

UNIT 1 The student will be able to: Assist students to:

JOB/BATCH 3.1.1 explain the terms Job/Batch Meaning of Job/Batch costing. state the meaning of job/batch costing. Answer questions
COSTING costing. Job costing: specific order costing given.
where work is undertaken to
customer‟s specification.

3.1.2 state the characteristics of Characteristics of job/batch costing. list the characteristics of job/batch costing.
job/batch costing -jobs Can be separately identified
-jobs are done according to customers
specification discuss the advantages of job/batch costing.

3.13 state the advantages of Job/Batch Advantages of job/batch costing.

Costing. -helps to fix selling price
-helps to determine profit on jobs discuss the circumstances under which
job/batch costing will be applicable.
3.1.4 state the circumstances under -Job/batch costing will be applicable
which Job/Batch costing will be where the customer has specific
applicable. requirements. Design Job cost sheet from given data.
-where job is of a relatively small Format:
nature. Job Cost Sheet GH¢
3.1.5 ascertain the cost of Job/Batch Ascertainment of Job/Batch cost by Direct material xx
from given data. Preparing of Job cost sheet. Direct labour xx
Direct Expenses xx
Prime Cost xx
Overheads xx Students prepare
Total cost xx job cost sheet from
Profit margin xx given data.
Selling price xx
==
apply job/batch costing in calculating the cost of
a job or batch under small scale business
15
 UNIT SPECIFIC OBJECTIVES CONTENT TEACHING AND LEARNING EVALUATION
ACTIVITIES

UNIT 2 The student will be able to: Assist students to:

CONTRACT 3.2.1 explain the term “Contract Meaning of contract costing; visit a construction site and observe the Write report on their visit
COSTING Costing”. that form of order costing which applies nature of constructional activities.
where work is undertaken to customers
requirements and each order is of long
duration.

3.2.2 explain conditions under which Contract costing is applied under discuss the circumstances under which Work exercises from given
contract costing apply conditions where the job takes a longer contract is applied. data.
time to complete.

3.2.3 state the characteristics of Characteristics of Contract costing discuss the characteristics of contract
Contract costing. -job is of a relatively longer period costing.
-usually undertaking outside the
company‟s premises

3.2.4 explain the terms associated with Terms used in contract costing e.g.; discuss the meaning of the terms listed
Contract costing material, retention, stage of under content.
completion, contract revenue,
contract cost of sale, recognized
profit, value of work certified,
progress billings, progress payment
and work in progress.

3.2.5 prepare Contract account. - preparation of Contract Account and prepare contract accounts. Students prepare contract
Contractee‟s Account account from given
information.
3.2.6 determine contract revenue, - Determination of relevant income determine contract revenue, contract
contract cost of sales and statement entries (Contract cost of sales and profit/loss on contract.
profit/loss on contract. Revenue, Contract Cost of Sale,
Recognized Profit )

3.2.7 prepare contractee‟s account. Contractee‟s Account prepare contractee‟s account Students work exercise
- Determination of relevant Balance from given data
Sheet Extracts (Work in Progress,
Receivable from contractee,
Closing Inventories, Accruals and
Prepayments.

16
 UNIT SPECIFIC OBJECTIVES CONTENT TEACHING AND LEARNING EVALUATION
ACTIVITIES

UNIT 3 The student will be able to: Assist students to:

SERVICE 3.3.1 explain the term “Service Costing” Meaning of service costing; a form of discuss the meaning of service costing.
COSTING operating costing where standardised
services are provided.

3.3.2 identify organizations where Organizations where service costing will visit some service organizations within Present reports on
service costing would be be appropriate. the locality to observe the costing of observation.
appropriate. e.g. Hospitals, Transport, Catering, services.
Educational institutions.

3.3.3 identify the objectives of service Objectives of service costing. discuss objectives of service costing. State four objectives and
costing as applied to a particular -determine cost per unit of service, of service costing.
organization. -help fix prices for services.

3.3.4 determine the standardized unit Determination of standardized unit of determine standardized unit of Work exercises from given
of measurement. measurement. measurement. data.

3.3.5 ascertain the cost per unit for Ascertainment of cost per unit of service demonstrate the computation of service
service rendered. rendered where: costs using data from various service
- one rate is involved organizations.
- more than one rate are
involved.
UNIT 4

PROCESS 3.4.1 explain process costing. Meaning of process costing : discuss the meaning of process costing. Present report on
COSTING that form of operating costing which observation.
applies where standardized goods are
produced.

3.4.2 identify characteristics of Process Characteristics of process costing. discuss the characteristics of process
Costing -materials go through several stages of costing
processing.
-goods produced are identical.
-output of one process becomes input
for the next process.

Note: Embark on educational visits to an

entity in the locality that uses process
costing.

17
 UNIT SPECIFIC OBJECTIVES CONTENT TEACHING AND LEARNING EVALUATION
ACTIVITIES
Guide students to:
UNIT 4 (CONT’D) The student will be able to:
3.4.3 explain the purposes of process Purposes of process costing: explain the concept of process costing.
PROCESS costing -to determine the average cost of Work exercises
COSTING production at the end of every from given data.
stage.
-to calculate the cost of
production.

3.4.4 state the circumstances Circumstances under which identify some manufacturing firms that use process
under which process costing process costing is applicable. costing e.g. breweries, bottling companies, oil refining
is applied. -where the products are identical. companies, etc.
-where different stages are
involved.

3.4.5 explain the terms associated Meaning of terms:

with process costing. Joint products
by - products
scrap
waste
normal loss
abnormal loss
abnormal gain
equivalent units.
3.4.6 calculate equivalent of calculate equivalent units of WIP from given data.
Calculation of equivalent units
completed units and work-in-
progress from given data using
FIFO and weighted average

3.4.7 prepare statement of production prepare statement of production cost and valuation using
Preparation of statement of
cost and valuation from given given data.
production cost and valuation at
information.
the end of each process.
3.4.8 determine normal and abnormal determine normal and abnormal loss, scrap, wastage and
Determination of normal loss,
loss, scrap, wastage and abnormal gain from given data.
abnormal loss, scrap, wastage
abnormal gain. e.g.
and abnormal gain.
Process Account
Date Details Qty Unit/ Amt Date Details Qty Unit/ Amt
3.4.9 prepare process, abnormal loss, Cost Cost
Preparation of process
abnormal gain and scrap sale
accounts, abnormal loss Material xx xx xx Normal loss xx xx xx
accounts. Labour xx xx xx Abnormal loss xx xx xx
account, abnormal gain account Expenses xx xx xx Transfer to
and scrap sale account. Overheads xx xx xx next process xx xx xx
Abnormal gain xx xx xx

xxx xxx xxx xxx xxx xxx

== == == == == ==
18
 SENIOR HIGH SCHOOL - YEAR 2 - TERM 3
SECTION 4

COSTING TECHNIQUES FOR CONTROL AND DECISION MAKING (1)

General objectives: The student will:

1. appreciate the use of marginal costing technique in decision making.

2. acquire skills in constructing and interpreting traditional breakeven chart.

UNIT SPECIFIC OBJECTIVES CONTENT TEACHING AND LEARNING EVALUATION

ACTIVITIES

UNIT 1 The student will be able to: Assist students to:

MARGINAL AND 4.1.1 explain Marginal Costing and Marginal Costing applies only direct cost discuss the meaning of marginal and Answer questions relating
ABSORPTION Absorption Costing. to production and Absorption Costing absorption costing. to differences between
COSTING applies both direct and fixed cost to Marginal Costing and
production. Absorption Costing.

4.1.2 explain the following terms Meaning of terms associated with Marginal discuss the standard definitions of the
associated with marginal Costing. terms.
costing fixed cost, variable cost, semi-variable
cost, contribution, break-even point,
margin of safety, period cost, product
cost, etc

4.1.3 prepare income statement Preparation of income statement using prepare income statement using Answer questions given.
from given data using both both Marginal Costing and Absorption Marginal Costing approach and
Marginal Costing approach Costing. Absorption Costing approach.
and Absorption Costing
UNIT 2 approach.

BREAK EVEN 4.2.1 explain break-even analysis. Meaning of break-even analysis. discuss the meaning and of break even Answer questions relating
ANALYSIS analysis of relationship between costs, analyses: to break-even analysis.
volume and profits at various levels of
activity.

4.2.2 explain the uses/importance Uses of Break even analysis discuss uses of break-even analysis.
of Break even analysis E.g. helps in fixing prices.
used in decision making.
etc.

19
 UNIT SPECIFIC OBJECTIVES CONTENT TEACHING AND LEARNING ACTIVITIES EVALUATION

UNIT 2 (CONT’D) The student will be able to: Assist students to:

BREAK EVEN 4.2.3 list the assumptions and Assumptions and limitations of discuss the assumptions and limitations underlying Mention five
ANALYSIS limitations of break-even break-even analysis. break-even analysis. assumptions and five
analysis. -all production is sold. limitations of
-cost can be separated into fixed breakeven analysis.
and variable components.
-etc
Limitations of Break Even analysis
-all production may not be sold
-all cost may not be separable into
fixed or variable cost.

4.2.4 determine break-even point in -Determination of break-even point discuss how break-even point is determined and
units and values. in units and value. computed in units and value.

4.2.5 Segregate fixed cost and - Segregating mixed cost into fixed mention methods of segregating mixed cost and
variable cost from mixed and variable. guide students to determine fixed and variable
cost. costs using only High and Low method.
UNIT 3

BREAK EVEN 4.3.1 use graphical presentation to - Graphical presentation of break- draw and interpret the traditional and contribution Prepare break-even
CHART determine break-even point. even points (traditional and break-even charts. charts indicating total
contribution charts) revenue, total cost,
E.g. Traditional or Conventional break-even fixed cost, variable
4.3.2 Interpret break-even charts. - Interpretation of break-even chart cost, margin of safety,
charts with particular reference to angle of incidence, etc.
margin of safety, angle of Sales/ Revenue
incidence, break-even point, total Cost
cost line, fixed costs line and Margin of
variable cost line, contribution and safety Total cost
profit zones.
BE sales
Fixed cost

Margin of safety
0 BE units
Output in units

4.3.3. explain and calculate the Computation of C/S ratio and how it calculate C/S ratio.
contribution/sales ratio and used to calculate the breakeven
demonstrate its use in point.
calculating sales, profit and
break-even point.

20
 SENIOR HIGH SCHOOL - YEAR 3 - TERM 1
SECTION 1

COSTING TECHNIQUES FOR CONTROL AND DECISION MAKING (2)

General objectives: The student will:

1. appreciate the role of budgeting and budgetary control in controlling expenditure.
2. understand the relationship between functional budgets and master budget
3. be predisposed to the meaning and the role of Standard Costing in decision making.

UNIT SPECIFIC OBJECTIVES CONTENT TEACHING AND LEARNING EVALUATION

ACTIVITIES

UNIT 1 The student will be able to: Guide students to:

BUDGETING 1.1.1 explain the concept of “Budgeting” Explanation of Budgetary Control. – differentiate budgeting from budgetary
AND and “Budgetary Control”. preparation of budgets and comparison of control.
BUDGETARY budget to actual for corrective action.
CONTROL
1.1.2 outline budgeting procedures. Procedure for preparing budget. discuss procedure for the preparation of Work exercises to
. Identifying objectives, Forecasting, budget a budget. demonstrate their
period, determining principal budget factor, understanding.
coordination, etc.

1.1.3 outline the importance/advantages Importance of budgeting and budgetary discuss the importance of budgeting and
of budgeting as a tool for control. budgetary control.
controlling business activities. -defining responsibilities
-evaluating performance

1.1.4 explain the disadvantages of Disadvantages of budgeting and discuss disadvantages of budget and
budgeting and budgetary control. budgetary control in business. budgetary control in business.
UNIT 2 expensive to install and operate
requires expertise to operate
FUNCTIONAL
BUDGETS 1.2.1 prepare functional budgets Functional budgets prepare functional budgets from given Prepare functional
Sales budget data. budgets from given data.
Production budget E.g. - cash Budget
Material usage budget uses excel on computer where available. - sales budget, etc.
Material purchase budget
Expense budget
Capital expenditure budget
Cash budget.

21
 UNIT SPECIFIC OBJECTIVES CONTENT TEACHING AND LEARNING EVALUATION
ACTIVITIES

UNIT 2 (CONT’D) The student will be able to: Assist students to:
-functional budgets feed into the master
FUNCTIONAL 1.2.2 explain the relationship between budget explain how functional budgets feed into Prepare master
BUDGETS functional budgets and master the master budget budget from given
budget. data.

1.2.3 explain the concept of principal Principal budget factor and its impact on discuss the concept of principal budget
budget factor/key factor/ limiting budget preparation. factor in budget preparation.
factor in budget preparation. -principal budget factor limits the total
scope of operations

1.2.4 explain the process of budget Budget administration: discuss the process of budget
administration. Budget committee administration.
Budget officer
Budget manual
Budget implementation
Budget reporting
Budget review
UNIT 3
1.3.1 explain standard cost and Meaning of standard cost and standard discuss the meaning of standard costing
STANDARD standard costing costing. and differentiate it from standard cost.
COSTING -standard cost is a predetermined cost
-standard costing is the establishment of
standards and comparism with actual for
corrective action.

Differences between standard cost and brainstorm to come out with differences
1.3.2 distinguish between standard cost
budgeted cost. between standard cost and budgeted
and budgeted cost.
cost.
Standard cost is predetermined cost for a
unit of product while budgeted cost is a
planned cost for a whole activity.

Different types of standards discuss the different types of standards

1.3.3 list and explain different types of
Expected/Attainable in groups and present reports in class.
standards.
standards
Ideal standards
Basic standards
Current standards.

22
 UNIT SPECIFIC OBJECTIVES CONTENT TEACHING AND LEARNING EVALUATION
ACTIVITIES

UNIT 3 (CONT’D) The student will be able to: Assist students to:

STANDARD 1.3.4 explain purposes of standard Purposes of standard costing: discuss the purposes of standard
COSTING costing. to set standards costing.
to fix selling prices
etc.

1.3.5 explain the advantages of Advantages of standard costing: discuss the advantages of standard Write an essay on
standard costing. helps to maintain the correct costing. advantages on standard
economic order quantity. costing.
deviations are revealed for
correction.
etc.
1.3.6 discuss the disadvantages of Disadvantages of standard costing: brainstorm to come out with the
standard costing. expensive to install. disadvantages of standard costing.
change in conditions may change
standards.
1.3.7 explain reasons why actual cost
Reasons why variances may occur.
may differ from standard cost discuss reasons why actual results may
resulting into variances. effective equipment used in differ from standards set.
production
changes in prices of materials
etc.
Calculate variances from
1.3.8 outline the importance of Importance of variance analysis as a list importance of variance analysis. given business
variance analysis. management control tool. information.

1.3.9 compute direct material cost Computation of simple variances involving: set standard cost for a chosen business
Variance, direct labour cost I. Direct Material Cost Variance analyzed activity, record actual cost, compute
variance and overhead cost into Price Variance and Usage Variance. variances, analyze the resultant
variance from given data. variances and brainstorm on how to
ii. Direct Labour Cost Variance analyzed prevent recurrence of adverse
into Rate Variance and Efficiency variances.
Variance. .
analyze overhead variances into fixed
iii. Overhead Cost Variance analyzed into and variable.
Fixed Overhead Variance and
Variable Overhead Variance.

23
 SENIOR HIGH SCHOOL - YEAR 3 - TERM 2
SECTION 2

COST BOOK KEEPING

General objectives: The student will:

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.

UNIT SPECIFIC OBJECTIVES CONTENT TEACHING AND LEARNING EVALUATION

ACTIVITIES

UNIT 1 The student will be able to: Assist learners to:

COST ACCOUNTS 2.1.1 describe various cost ledger Cost ledger control accounts and their list and describe the various cost ledger List and describe the
(INTERLOCKING) control accounts kept in the relationship with those in financial control accounts various cost ledger
costing books and their books: control accounts.
relationship with ledgers in the discuss the relationship between cost
financial books. -Cost ledger ledger accounts and accounts in the
-Stores ledger financial books.
-Work-in-progress ledger
-Finished goods ledger
-Overheads ledger

2.1.2 prepare the various cost ledger Preparation of cost ledger accounts. prepare cost ledger control accounts. Prepare cost ledger
accounts from given data. control accounts from
given data.
Explanation of interlocking (non- explain the principles of inter locking
2.2.1 explain the principle of integrated) accounting method. accounts.
interlocking accounts and the
need for reconciliation of cost
accounts and financial accounts.
UNIT 2
2.2.2 prepare a statement to reconcile Reconciliation of cost accounts profit discuss the need to reconcile cost Solve questions involving
RECONCILIATION cost accounting profit and and financial accounts profit. accounts and financial accounts. reconciliation of costing
OF COST AND financial accounting profit. profit and financial profit.
FINANCIAL reconcile cost accounting profit and
PROFITS financial accounting profit.

explain some of the reconciling items,

e.g. depreciation, interest on loan/
investment, notional rent, under/over
absorption, etc.

24
 UNIT PECIFIC OBJECTIVES CONTENT EACHING AND LEARNING EVALUATION
ACTIVITIES

UNIT 3 The student will be able to: Guide students to:

COST 2.3.1 explain the concept of integrated Explanation of integrated accounting explain integrated accounting method
ACCOUNTS accounts. method. (highlighting how it differs from
(INTEGRATED interlocking method.)
METHOD) A single accounting system where both
financial and cost accounts are maintained
as one set of books.

2.3.2 prepare ledger accounts and Preparation of ledger accounts and prepare ledger accounts from given data Solve questions involving
income statement using the income statement using integrated using the integrated accounting system. preparation of ledger
integrated accounts method. accounting approach. accounts and income
statement using the
integrated approach.

25