Syllabus of PIPFA Level 2 Cost Accounting

Get access to latest and updated syllabus of PIPFA Level 2 Cost Accounting now. Here you will find detailed course content or Syllabus of PIPFA Level 2 Cost Accounting for upcoming attempt.

Unfortunately, PIPFA does not publish it’s own study text. But you need not to worry as you can use study texts of ICAP and/or ICMAP. You will have the advantage on other students. The reason being ICAP and ICMAP study texts are comparatively more difficult than the books recommended by PIPFA examination body.

Syllabus of PIPFA Level 2 Cost Accounting

Syllabus GRID:

Here is the grid for syllabus of PIPFA Level 2 Cost Accounting.

GRIDWEIGHTAGE
Cost accounting concepts and accounting for material labor and factory overheads30 – 40
Costing Systems40 – 50
Standard costing and variance analysis15 – 25
Total100

Course Outline:

The course outline for syllabus of PIPFA Level 2 Cost Accounting for upcoming attempt gives an overview of the course .The detailed Syllabus of PIPFA Level 2 Cost Accounting for upcoming attempt is given below the course outline section.

Cost Accounting Concepts:             

  • Elements of cost             
  • Direct and indirect cost           
  • Applied and actual overheads        
  • Fixed and variable overheads        
  • Period and product costs        

Cost accounting concepts and Accounting for material, labor and factory overheads:

  • Material

•  Procedure for procurement and recording of material

•  Material costing methods

•  Basis of valuation (FIFO, weighted average)

•  Accounting for material and related costs

  • Labor

•  Direct and indirect labor

•  Remuneration methods (periodic basis, hourly rate, straight piece rate, differential piece rate, incentive wage plans)

•  Labor related costs (Overtime, bonus, vacation pay, guaranteed wage plans and pensions)

•  Accounting for labor and labor related costs

  • Overheads

•  Nature of factory overhead expenses

•  Calculation and use of predetermined factory overhead rate

•  Accounting for actual and applied overheads and under/over absorbed overheads

•  Allocation, apportionment and absorption of service departments overheads

•  Analysis of under/over absorption in terms of expenditure and volume variance

•  Administrative and selling overheads

Costing Systems:

  • Job costing and batch costing
  • Process costing
  • Costing of joint and by-products
  • Marginal and absorption costing

Standard Costing and variance:

  • Introduction to standard costing
  • Establishing standard costs
  • Calculation of variances

•  Material variances (Price, Usage, Mix and Yield variance)

•  Labor variances (Rate and efficiency variances)

•  Overheads (Three and four variance methods)

  • Analysis and interpretation of variances

Detailed Syllabus Contents:

The detailed Syllabus of PIPFA Level 2 Cost Accounting for upcoming attempt is given below.

Cost Accounting Concepts     

  • Explain the flow of cost in the production process using examples
  • Prepare accounting entries for the flow of cost.
  • Describe manufacturing overheads using examples
  • Compare manufacturing, administrative and selling costs
  • Identify manufacturing overheads from data provided
  • Describe and distinguish between actual overhead and applied overhead    
  • Calculate applied overheads using data provided.  
  • Apply inventory valuation methods (namely, FIFO, weighted average, lower of cost and net realizable value) in simple scenarios
  • Comment on the suitability of inventory valuation under FIFO, weighted average, lower of cost and net realizable value
  • Compare inventory valuation under FIFO, weighted average, lower of cost and net realizable value
  • Calculate NRVs of inventories in a given scenario. 
  • Discuss productivity and efficiency measurement in relation to controlling labor costs
  • Explain the concept of Remuneration systems, incentive wage plans and types therein.
  • Record labor costs
  • Apply the impact of learning curve theory on the productivity of employees. 
  • Describe manufacturing overheads using examples
  • Compare manufacturing, administrative and selling costs
  • Identify manufacturing overheads from data provided
  • Describe and distinguish between actual overhead and applied overhead
  • Calculate applied overheads using data provided.
  • Compare actual and absorbed overheads from data provided
  • Analyze over or under absorption in terms of expenditure and volume variances
  • Account for over or under- absorbed overheads.
  • Allocate costs to production and service departments using information provided
  • Allocate costs of service departments to production department using data and information provided.

Costing Systems:    

  •  Describe job order costing
  • Calculate the cost of a job and inventories by application of job order costing
  • Prepare accounting entries under the job order costing system.  
  • Describe the process costing including the treatment of normal / abnormal loss / gain
  • Calculate cost of product and inventories by application of process costing
  • Prepare accounting entries under the process costing system.
  • Account for the cost of rework
  • Account for the units added in subsequent departments
  • Account for the N.R.V of by- product in process account.
  • Describe joint and by products using examples
  • Allocate joint production costs using sales value, physical units, average units and weighted average methods
  • Account for by-products using recognition of gross revenue, recognition of net revenue and replacement cost approaches.      
  • Explain the concept of marginal costing and apply on given data
  • Explain how marginal costing helps managerial decisions using examples.     

Standard Costing and Variance Analysis:

  • Explain standard costing using examples
  • Perform standard setting for material, labor and factory overhead.
  • Calculate, analyze and interpret various variances relating to material, labor and factory overhead.     
  • Variance is the difference between an actual and estimated cost Variance analysis is one step in the process of identifying and explaining the reasons for different outcomes

Focus

Syllabus of PIPFA Level 2 Cost Accounting Syllabus of PIPFA Level 2 Cost Accounting Syllabus of PIPFA Level 2 Cost Accounting

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