INTRODUCTION


This qualification is suitable for candidates who are working, or are preparing to work, in an accounting environment at a level that requires a moderate level of cost accounting knowledge and skill, as well as a basic understanding of cost accounting principles and practice. Candidates attempting this qualification should have the knowledge and skills equivalent to the LCCI level 1 Book-keeping qualification in order to understand the relationships between financial accounting and cost accounting, and basic accounting terms. Successful candidates may progress go the LCCI Cost Accounting and/or Management Accounting Level 3 qualifications.


COST ACCOUNTING (LEVEL II)


AIMS


The aim of this qualification are to enable candidates to develop:

    • A detail understanding of how financial transaction data may be processed to provide cost accounting data.
    • A basic understanding of how cost accounting information can be used for the purposes of planning and control within business organizations.
    • The ability to apply this understanding of planning and control in a variety of business settings.


TARGET AUDIENCE AND CANDIDATE PROGRESSION


This qualification is suitable for candidates who are working, or are preparing to work, in an accounting environment at a level that requires a moderate level of cost accounting knowledge and skill, as well as a basic understanding of cost accounting principles and practice. Candidates attempting this qualification should have the knowledge and skills equivalent to the FIC Level 1 Book-keeping qualification in order to understand the relationships between financial accounting and cost accounting, and basic accounting terms. Candidates who achieve Cost Accounting (Level 2) may progress to the Cost Accounting and/or Management Accounting (Level 3) qualifications.


LEVEL OF ENGLISH REQUIRED


Candidates should have a standard of English equivalent to intermediate or upper intermediate for Business.


STRUCTURE OF THE QUALIFICATION


The Certificate of Cost Accounting (Level 2) is a single unit qualification that consists of the range of topics detailed below:


SYLLABUS TOPICS


    1. Basic terminology and cost classification
    2. Costing for materials
    3. Costing for labor
    4. Costing for overheads
    5. Costing methods
    6. Marginal costing
    7. Budgetary planning and control
    8. Standard costing and variances
    9. Accounting systems


GUIDED LEARNING HOURS


FIC recommends that 140-160 Guided Learning Hours (GLHs) provide suitable course duration for an ‘average’ candidate at this level. This figure includes direct contact hours as well as other time when candidates ‘work is being supervised by teachers. Ultimately, however, it is the responsibility of training centers to determine the appropriate course duration based on their candidates ‘ability and level of existing knowledge. FIC experience indicates that the number of GLHs can vary significantly from one course to another.


ASSESSMENT


ASSESSMENT OBJECTIVES


The examination will assess the candidate’s ability to:

    • Demonstrate detailed knowledge and understanding of methods of cost accounting data processing
    • Demonstrate knowledge and understanding of planning and control principles, techniques and processes
    • Apply the knowledge and understanding of planning and control in a variety of business settings

EXAMINATION FORMAT


The time allowance for the examination is 2.5 hours. The paper will consist of 5 compulsory questions. All questions will carry equal marks. At least 2 of the following syllabus topics will appear on each examination:

    1. Costing for materials
    2. Costing for labor
    3. Costing for overhead

MARK ALLOCATION


A positive marking approach is used; although candidates will be penalized for initial calculation errors, they will gain marks for consequential ‘own figures’ as long as the correct use of principles has been demonstrated.


CERTIFICATION


Successful candidates will be awarded the certificate in Cost Accounting (Level 2) based on the achievement of the percentages and grades below:

    • Pass 50%
    • Merit 60%
    • Distinction 75%