January 2023

Inventory valuation methods: Effects of different methods on profit

By |2022-09-15T12:32:19+02:00January 24th, 2023|Cambridge AS A Level Accounting, Notes, ZIMSEC A Level Accounting|

Cambrige AS and A Level Accounting Notes (9706)/ ZIMSEC  Advanced Accounting Level Notes: Inventory valuation: Inventory valuation methods: Effects of different valuation methods on profit

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Absorption Costing: Statement of Profit or Loss Example

By |2022-09-15T12:30:37+02:00January 24th, 2023|Cambridge AS A Level Accounting, Notes, ZIMSEC A Level Accounting|

Cambrige AS and A Level Accounting Notes (9706)/ ZIMSEC  Advanced Accounting Level Notes: Absorption Costing: Statement of Profit or Loss Example

  • We have already looked at the format of a Statement of Profit or Loss under Absorption Costing here
  • It is now time to look at an example

Example Question

Oakwood Manufacturing Ltd started in business on 1 January 20×8 […]

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Types of Costs: Period, Opportunity, Sunk and Relevant costs

By |2022-09-15T12:32:28+02:00January 24th, 2023|Cambridge AS A Level Accounting, Notes, ZIMSEC A Level Accounting|

Cambrige AS and A Level Accounting Notes (9706)/ ZIMSEC  Advanced Accounting Level Notes: Types of Costs: Period, Opportunity, Sunk and Relevant costs

  • In addition to looking at how costs behaviour in relation to the level of activity ( units produced)
  • It […]
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Costing for Labour: Introduction

By |2022-09-15T12:32:19+02:00January 24th, 2023|Cambridge AS A Level Accounting, Notes, ZIMSEC A Level Accounting|

Cambrige AS and A Level Accounting Notes (9706): Costing for labour

  • In most entities the two largest expenses are usually material/purchases and labour
  • We have already looked at costing for materials (inventory) here
  • We will now examine the costing for labour
  • First we will look at the basic terms involved and different labour setups and scenarios of typical […]
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Absorption Costing: Statement of Profit Worked Example

By |2022-09-15T12:30:36+02:00January 24th, 2023|Cambridge AS A Level Accounting, Notes, ZIMSEC A Level Accounting|

Cambrige AS and A Level Accounting Notes (9706)/ ZIMSEC  Advanced Accounting Level Notes: Absorption Costing: Statement of Profit Worked Example

The Question

Zambe Ltd produces […]

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Direct materials, indirect materials and labour

By |2022-09-15T12:32:27+02:00January 24th, 2023|Cambridge AS A Level Accounting, Notes, ZIMSEC A Level Accounting|

Cambrige AS and A Level Accounting Notes (9706)/ ZIMSEC  Advanced Accounting Level Notes: Types of Costs: Direct materials, indirect materials and labour

  • It is important to point out at this stage that there are generally three types of entities:
    1. Manufacturing entities that make goods and sell them
    2. Merchandising entities that purchase goods and sell them for a profit […]
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Costing for Labour: Remuneration Methods

By |2022-09-15T12:32:18+02:00January 24th, 2023|Cambridge AS A Level Accounting, Notes, ZIMSEC A Level Accounting|

Cambrige AS and A Level Accounting Notes (9706): Costing for labour: Remuneration methods

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  • Now that we have examined the basics of labour within organisations
  • It is time to look at remuneration methods
  • There are three basic remuneration […]
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Uses and Limitations of Absorption Costing

By |2022-09-15T12:30:36+02:00January 24th, 2023|Cambridge AS A Level Accounting, Notes, ZIMSEC A Level Accounting|

Cambrige AS and A Level Accounting Notes (9706)/ ZIMSEC  Advanced Accounting Level Notes: Absorption Costing: Uses and Limitations of Absorption Costing

  • According to research by CIMA the leading Management Institute
  • Traditional costing methods such as Absorption costing are still in widely used by manufacturing businesses throughout the world
  • There is are reasons for this

Uses/Advantages of Absorption costing

  • Often used […]
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Inventory valuation: Introduction

By |2022-09-15T12:32:27+02:00January 24th, 2023|Cambridge AS A Level Accounting, Notes, ZIMSEC A Level Accounting|

Cambrige AS and A Level Accounting Notes (9706)/ ZIMSEC  Advanced Accounting Level Notes: Inventory valuation: Introduction

  • It has already been pointed out elsewhere that there are several types of entities:
    1. Manufacturing entities that make goods and sell them
    2. Merchandising entities that purchase goods and sell them for a profit for example supermarkets
    3. Entities that provide services for […]
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Costing for Overheads: Introduction

By |2022-09-15T12:32:18+02:00January 24th, 2023|Cambridge AS A Level Accounting, Notes, ZIMSEC A Level Accounting|

Cambrige AS and A Level Accounting Notes (9706)/ ZIMSEC  Advanced Accounting Level Notes: Costing for Overheads: Introduction

  • A business needs to know the cost per unit of its products for many reasons
  • For example in order to be able to:
  • Value its inventory properly
  • Come up with an appropriate selling price so that they can ensure they are making […]
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