Job Costing – NBC Institute

IMAC – MAR 2024 – L1 – Q3 – Job Costing

Explain decision-making levels within an organization, sources of management accounting information, and factors for an effective job costing system.

Question

a) Management accounting is the provision of financial and non-financial decision-making information to managers.

Required:
i) Explain the decision-making levels within an organization and state an example each of the kind of decision taken at the various levels. (9 marks)
ii) Explain TWO (2) sources of management accounting information and state an example each of the information to be obtained. (6 marks)

b) One form of specific order costing methods that seeks to attribute costs to jobs is known as job costing.

Required:
Enumerate THREE (3) factors that are necessary to ensure an effective and workable job costing system. (5 marks)

Answer

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Tags: Decision-Making Levels, Job Costing System, Sources of Management Accounting Information
Level: Level 1

Topic: Job Costing
Series: MAR 2024

IMAC – NOV 2019 – L1 – Q1 – Job Costing

Calculate overhead absorption rates and estimate the costs and invoice price for a job.

Question

You have just been appointed the full-time Management Accountant for Genuine Jobbers Limited, a company based in the North Industrial Area in Accra that produces cartons to meet customers’ specific requirements. You have been tasked to determine the cost and invoice price per job for the forthcoming period and have been provided with the following:

Budgeted statement of profit or loss for the financial year ended 31 March, 2020:

The sales department is currently negotiating a price for an enquiry for job number 45A/2020 and the following information has been provided for that purpose:

Direct costs estimates:

	GH¢
Direct material	18,000
Direct labour: Grinding department 400 hours @ GH¢10 each	4,000
Finishing department 300 hours @ GH¢12 each	3,600

Note:

It is recommended that production overheads are charged to jobs on the basis of direct labour hours worked.
Selling and administrative expenses are charged at 10% of production cost.
It is a policy of the company to make a profit margin as budgeted on each job.

Required:
a) Compute the overheads absorption rates for each of the production departments. (4 marks)
b) As the Management Accountant, estimate the costs of Job 45A/2020 in the light of the information provided, and hence an invoice price for the Sales Manager’s use. (16 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Invoice Price Calculation, Job Costing, Overhead Absorption
Level: Level 1

Topic: Job Costing
Series: NOV 2019

IMAC – MAR 2024 – L1 – Q3 – Job Costing

Explain decision-making levels within an organization, sources of management accounting information, and factors for an effective job costing system.

Question

a) Management accounting is the provision of financial and non-financial decision-making information to managers.

b) One form of specific order costing methods that seeks to attribute costs to jobs is known as job costing.

Required:
Enumerate THREE (3) factors that are necessary to ensure an effective and workable job costing system. (5 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Decision-Making Levels, Job Costing System, Sources of Management Accounting Information
Level: Level 1

Topic: Job Costing
Series: MAR 2024

IMAC – NOV 2019 – L1 – Q1 – Job Costing

Calculate overhead absorption rates and estimate the costs and invoice price for a job.

Question

Budgeted statement of profit or loss for the financial year ended 31 March, 2020:

The sales department is currently negotiating a price for an enquiry for job number 45A/2020 and the following information has been provided for that purpose:

Direct costs estimates:

	GH¢
Direct material	18,000
Direct labour: Grinding department 400 hours @ GH¢10 each	4,000
Finishing department 300 hours @ GH¢12 each	3,600

Note:

It is recommended that production overheads are charged to jobs on the basis of direct labour hours worked.
Selling and administrative expenses are charged at 10% of production cost.
It is a policy of the company to make a profit margin as budgeted on each job.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Invoice Price Calculation, Job Costing, Overhead Absorption
Level: Level 1

Topic: Job Costing
Series: NOV 2019

Topic: Job Costing

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IMAC – MAR 2024 – L1 – Q3 – Job Costing

Explain decision-making levels within an organization, sources of management accounting information, and factors for an effective job costing system.

IMAC – NOV 2019 – L1 – Q1 – Job Costing

Calculate overhead absorption rates and estimate the costs and invoice price for a job.

IMAC – MAR 2024 – L1 – Q3 – Job Costing

Explain decision-making levels within an organization, sources of management accounting information, and factors for an effective job costing system.

IMAC – NOV 2019 – L1 – Q1 – Job Costing

Calculate overhead absorption rates and estimate the costs and invoice price for a job.

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IMAC – MAR 2024 – L1 – Q3 – Job Costing

Explain decision-making levels within an organization, sources of management accounting information, and factors for an effective job costing system.

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IMAC – NOV 2019 – L1 – Q1 – Job Costing

Calculate overhead absorption rates and estimate the costs and invoice price for a job.

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IMAC – MAR 2024 – L1 – Q3 – Job Costing

Explain decision-making levels within an organization, sources of management accounting information, and factors for an effective job costing system.

You're reporting an error for "IMAC – MAR 2024 – L1 – Q3 – Job Costing"

IMAC – NOV 2019 – L1 – Q1 – Job Costing

Calculate overhead absorption rates and estimate the costs and invoice price for a job.

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