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1 How may a cost system be defined ?
2. A principal point in connection with the creation of a cost system is a knowledge of the company's plant, machinery, methods, layout, and flow of work. With this knowledge the accountant possesses the essential background information to develop the necessary cost procedures. Explain how the accountant would use this information.
3. A chart of accounts, accompanied by adequate instructions, is a great aid to better accounting, costing, and controlling. Explain.
4. The journal voucher control system is said to be one of the most effective means of internal control when designed to fit a specific enterprise and properly administered.
(a) Explain how the voucher can be a means of internal control.
(b) How does a voucher serve as a connecting link between general accounting and cost accounting?
2. A principal point in connection with the creation of a cost system is a knowledge of the company's plant, machinery, methods, layout, and flow of work. With this knowledge the accountant possesses the essential background information to develop the necessary cost procedures. Explain how the accountant would use this information.
3. A chart of accounts, accompanied by adequate instructions, is a great aid to better accounting, costing, and controlling. Explain.
4. The journal voucher control system is said to be one of the most effective means of internal control when designed to fit a specific enterprise and properly administered.
(a) Explain how the voucher can be a means of internal control.
(b) How does a voucher serve as a connecting link between general accounting and cost accounting?
5. If a factory is located in one city or state and the general office in another,it is desirable to separate a portion of the records.
(a) Name four control accounts and the subsidiary ledgers that would likely be kept at the factory.
(b) How are ledgers kept in balance between the factory and the general office?
(c) What entry would be made on the factory books when goods are shipped directly to a customer? Assume inventory records are maintained at the factory.
(d) What entry would be made on the home office books for transaction (c)
(a) Name four control accounts and the subsidiary ledgers that would likely be kept at the factory.
(b) How are ledgers kept in balance between the factory and the general office?
(c) What entry would be made on the factory books when goods are shipped directly to a customer? Assume inventory records are maintained at the factory.
(d) What entry would be made on the home office books for transaction (c)
(e) A factory sends goods it has produced to another branch factory. What entry would be made on the producing factory's books?
6. (a) Where a portion of the accounting is done at the factory and a factory ledger is maintained, what accounts are most likely to be in the factory ledger ?
(b) What is the principal reason for maintaining accounts at the factory?
7. (a) What are the four major activities provided by a digital computer?
(b) A computer system may collect and analyze business data in different ways for different levels of management. Discuss.
8. What advantages does the electronic data processing system offer for cost accounting record keeping ?
6. (a) Where a portion of the accounting is done at the factory and a factory ledger is maintained, what accounts are most likely to be in the factory ledger ?
(b) What is the principal reason for maintaining accounts at the factory?
7. (a) What are the four major activities provided by a digital computer?
(b) A computer system may collect and analyze business data in different ways for different levels of management. Discuss.
8. What advantages does the electronic data processing system offer for cost accounting record keeping ?
