In the AAT Principles of Costing syllabus, what is the primary purpose of a costing system within an organisation?
Cost Recording System
Question · Easy
Which of the following best describes a 'cost unit'?
Part of an organisation that is classified as cost, revenue, profit or investment.
Recording system
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Introduction
About the AAT Principles of Costing (PCTN) Assessment
Study guide
A 'cost centre' is best defined as:
Read the clue and guess the term in 6 tries.
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Costs that can be specifically and directly identified with a cost unit are known as:
Cost Classification
Numeric, alphabetic or alphanumeric reference attached to a cost so that it can be recorded and analysed.
The sum of direct materials, direct labour and direct expenses is called the:
Which of the following would normally be classified as a direct material cost for a furniture manufacturer?
Kind of cost tied to the units produced, such as the labour spent making them, as opposed to an overhead.
Chapter 1: The Cost Accounting Framework
1.1 Purpose and Role of Cost Accounting
The salary of a factory maintenance engineer who services all machines would be classified as:
Swap tiles to line up three of the same term.
Term Match
A cost that stays the same in total regardless of the level of output (within the relevant range) is a:
Kind of production overhead that stays relatively constant whatever the volume produced, such as factory depreciation.
A cost that changes in direct proportion to the level of activity, such as raw material used per unit, is a:
A telephone bill consists of a fixed line rental plus a charge for each call made. This is an example of a:
Time-___: labour payment method based on hours worked rather than units produced.
1.2 Cost Accounting versus Financial Accounting
As output increases, what happens to the fixed cost per unit?
Question · Medium
Flip two cards at a time to find matching terms.
Term Pairs
Production overheads are best described as:
Inventory method that assumes the oldest items bought or produced are sold before newer ones.
Recording techniques
Within a numeric cost coding system, a business uses code 200 for the Production cost centre and a sub-code 10 for materials. Which code records production materials?
Cost Coding
What is the main benefit of using a structured cost coding system?
Inventory method that assumes the newest items received are issued before older ones.
1.3 Responsibility Accounting and Cost Centres
An alphabetic code uses 'PR' for Production, 'AD' for Administration and 'SL' for Selling. A cost relating to the sales team's commission should be coded:
Find five hidden terms in a grid of letters.
Term Search
A business buys 100 units at £4 and later 100 units at £6. Using the FIFO method, what is the cost of issuing 120 units to production?
Inventory Valuation
Inventory method that values issues and closing stock at a mean unit price blending opening items with those bought or made during the period.
A business buys 100 units at £4 and later 100 units at £6. Using the LIFO method, what is the cost of issuing 120 units to production?
A business buys 100 units at £4 and later 100 units at £6. Using AVCO (weighted average), what is the cost per unit of stock held before any issue?
Element of cost covering employee pay, including time rates, overtime, piecework and bonuses.
Chapter 2: Cost Recording, Sourcing, and Coding
2.1 Cost Units and Cost Objects
During a period of consistently rising purchase prices, which inventory method gives the HIGHEST closing inventory valuation?
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Which inventory document records the receipts, issues and running balance of a particular item of material?
Single item or measure of output for which a cost is calculated.
A worker is paid £12 per hour on a time-rate basis and works 38 hours in a week. What is the gross basic pay?
Labour Costing
A worker is paid £0.80 for every unit produced under a piecework scheme and makes 600 units in a week. What is the gross pay?
Extra payment made to an individual worker or to a team under a labour costing scheme.
2.2 Cost Coding Systems and Principles
A worker's basic rate is £10 per hour. Overtime is paid at time-and-a-half. If 4 overtime hours are worked, what is the total overtime PAY for those hours?
Under a time-rate-plus-bonus scheme, a worker earns basic pay of £400 plus a bonus of £0.50 for each unit produced above a target of 500 units. If 560 units are made, what is the total gross pay?
Activity basis for overhead rates, counted for either labour or machines.
Which payment method links an employee's pay directly to the number of units they produce?
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