Home/COST ACCOUNTING
  1. Asked: January 20, 2023In:

    Explain four measures that a firm may take to prevent fraud in the payroll. (8 marks)November 2022

    Best Answer
    Jemshah Enlightened

    Segregation of duties: This involves separating the responsibilities of creating, approving, and processing payroll to different employees, so that one person is not responsible for all aspects of the process. Background checks: Conducting background checks on new hires and current employees to idenRead more

    1. Segregation of duties: This involves separating the responsibilities of creating, approving, and processing payroll to different employees, so that one person is not responsible for all aspects of the process.
    2. Background checks: Conducting background checks on new hires and current employees to identify any history of fraud or financial crime.
    3. Timely reviews: Regularly reviewing and reconciling payroll records, including employee timecards and paychecks, to identify any discrepancies or suspicious activity.
    4. Strong passwords: Implementing strong and unique passwords for payroll systems and regularly changing them to prevent unauthorized access.
    5. Training: Regularly training employees on fraud prevention and encouraging them to report any suspicious activity.
    6. Auditing: Conducting regular internal audits of payroll records to identify any errors or discrepancies.
    7. Access controls: Limiting access to payroll systems and records to only authorized employees and implementing a system of role-based access controls.
    8. Whistleblower policy: Implementing a whistleblowing policy to encourage employees to report any suspicious activity or fraud without fear of retaliation.
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  2. Asked: January 20, 2023In:

    Differentiate between each of the following type of costs: (i) Fixed costs and variable costs; (ii) Product costs and period costs; (iii) Relevant costs and irrelevant costs; (iv) Controllable costs and non-controllable costs.(8 marks)November 2022

    Best Answer
    Jemshah Enlightened

    (i) Fixed costs are costs that do not change with the level of production or sales, such as rent or salaries. Variable costs, on the other hand, are costs that vary with the level of production or sales, such as the cost of raw materials or utilities. (ii) Product costs are costs that are directly aRead more

    (i) Fixed costs are costs that do not change with the level of production or sales, such as rent or salaries. Variable costs, on the other hand, are costs that vary with the level of production or sales, such as the cost of raw materials or utilities.

    (ii) Product costs are costs that are directly associated with the production of goods, such as raw materials and direct labor. Period costs, on the other hand, are costs that are not directly associated with the production of goods, such as selling and administrative expenses.

    (iii) Relevant costs are costs that are directly related to a specific decision or situation and will be affected by that decision. Irrelevant costs are costs that are not directly related to a specific decision or situation and will not be affected by that decision.

    (iv) Controllable costs are costs that can be controlled by management through planning and decision making such as direct labor, direct materials and some overhead costs. Non-controllable costs are costs that cannot be controlled by management, such as rent or interest expenses.

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  4. Asked: January 20, 2023In:

    Explain four duties of a cost accountant in a manufacturing firm. (8 marks)November 2022

    Best Answer
    Jemshah Enlightened

    Cost analysis: Identifying and analyzing the costs of producing goods, including raw materials, labor, and overhead costs. Budgeting: Preparing and monitoring the budget for the manufacturing firm, including forecasting future costs and revenues. Product pricing: Analyzing costs and recommending priRead more

    1. Cost analysis: Identifying and analyzing the costs of producing goods, including raw materials, labor, and overhead costs.
    2. Budgeting: Preparing and monitoring the budget for the manufacturing firm, including forecasting future costs and revenues.
    3. Product pricing: Analyzing costs and recommending prices for products, taking into account factors such as competition, production costs, and market demand.
    4. Inventory management: Tracking and managing the firm’s inventory, including determining the most cost-effective methods for purchasing, storing, and using raw materials.
    5. Performance analysis: Analyzing the financial performance of the firm, including identifying areas for cost savings and revenue growth.
    6. Financial reporting: Preparing financial reports, such as cost and profit reports, to provide management with accurate and up-to-date information on the financial performance of the firm.
    7. Cost control: Implementing and monitoring cost control measures to ensure that the firm is operating as efficiently as possible.
    8. Compliance: Ensuring that the firm is compliant with all relevant laws and regulations, including tax laws and accounting standards.
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