WASSCE Candidates’ Weaknesses In Principles of Cost Accounting And Remedies | Extract From Chief Examiners Report Towards WASSCE 2023

WASSCE Candidates’ Weaknesses In Principles of Cost Accounting And Remedies | Extract From Chief Examiners Report Towards WASSCE 2023

Teachers preparing students for any examination are always worried about the potential weaknesses in answers that their students will provide during the examination. Fortunately, the main examining body, the West Africa Examination Council always provide WASSCE candidates’ weaknesses in Principles of Cost Accounting during the last held examinations.

WAEC Summary of 2021 WASSCE Principles of Cost Accounting Paper Two (2)

A. SUMMARY OF CANDIDATES STRENGTHS

Candidates were able to;

• Explain cost.
• Distinguish between the following costing terminologies

(a) controllable and uncontrollable cost

(b) product and period cost

(c) cost unit and unit cost

• Explain the following methods of remuneration

(a) piece rate

(b) time rate

• Explain the following terms

(a) normal loss

(b) waste

(c) scrap

(d) abnormal loss

• Define budget
• Outline the benefits of a budget to an organisation
• Prepare stock ledgers using Last in First Out and Weighted Average methods of costing issues

B. SUMMARY OF CANDIDATES WEAKNESSES

Candidates were not able to;

1. Explain premium bonus
2. State the factors to consider before instituting incentive schemes in a firm
3. Give examples of cost units for breweries, pharmaceuticals and soliciting firms
4. Prepare journal entries to record cost transactions
5. Compute suitable overhead absorption rates for different operations departments
6. Prepare profit statements for two separate months using marginal costing approach

C. SUGGESTED REMEDIES FOR THE WEAKNESSES

• The differences between the various incentive schemes like premium bonus and overtime etc. should be well explained.

• Emphasis should be placed on explanation of the factors to consider before instituting incentive schemes
• The meaning of cost unit and examples of cost units in a typical manufacturing and service industries should be well explained.
• Candidates should be taught how to determine the most suitable overhead absorption rate for a firm when there are several alternatives of absorption rates.
• Candidates should also be advised to read the question carefully and understand the exact requirements of the question before attempting to answer.

WAEC Summary of 2020 WASSCE Principles of Cost Accounting Paper Two (2)

A. SUMMARY OF CANDIDATES’ STRENGTH

Candidates were able to:

(1) state the reasons for cost classification;

(2) list the documents used in the store;

(3) explain the purpose of retention in cost accounting;

(4) distinguish between joint products and by products;

(5) list the characteristics of job order costing;

(6) explain the various types of standards;

(7) compute overheads absorbed by different departments;

(8) compute the cost of producing an order using batch costing;

(9) calculate the:

• Variable cost per unit;
• Contribution per unit;
• Break-even point in units and value.

(10) compute the wage rate for normal work;

(11) compute the overtime premium rate.

B. SUMMARY OF CANDIDATES’ WEAKNESSES

Candidates were not able to:

(1) classify various costs according to their groups;

(2) explain the importance of fixing the following cost control levels:

• economic order quantity;
• re-order level;
• maximum stock level;
• minimum stock level;
• buffer stock.

(3) compute the over or under absorbed overheads for the different departments;

(4) the profit to be made from the production of 25,000 units;

(5) prepare a cash budget for the first quarter of the year;

(6) compute the total cost of operation under the two different scenarios i.e.

• where the existing workers are allowed to do overtime and
• where more workers are engaged at normal rate

C. SUGGESTED REMEDIES

(1) The purpose and basis of cost classification should be well explained to candidates.

(2) Candidates should be thought not only the meaning of the cost control levels but also to understand the importance of those measures.

(3) Candidates should be thought to understand that the difference between overhead absorbed and actual overhead incurred is either over absorbed or under absorbed overhead.

(4) The topic of break-even analysis should be well taught especially how to calculate the expected profit at a certain level of production.

(5) Candidates should be taught cash budget especially the timing of the receipts from debtors and payment to creditors.

(6) Candidates should be taught to apply the principles in labour remuneration, to compute the cost of labour to include all expenses on workers.

WAEC Summary of 2019 WASSCE Principles of Cost Accounting Paper Two (2)

A. SUMMARY OF CANDIDATES’ STRENGTHS

Candidates were able to:

(i) explain some of the qualities of cost accounting information;

(ii) explain and state the causes of labour turnover;

(iii) state the importance of standard costing;

(iv) explain Principal Budget Factor and budget manual and state the advantages of operating a system of budgetary control;

(v) classify cost correctly to some extent;

(vi) prepare cost ledgers to show cost of sales using First In First Out and Last In First Out methods of valuing stock issues;

(vii) calculate the various costs for students of Oyibo High School;

(viii) compute the cost, contribution and break-even point for a company.

See also: Candidates’ Weaknesses In Economics And Remedies | Extract From Chief Examiners Report For WASSCE 2023

B. SUMMARY OF CANDIDATES’ WEAKNESSES

Candidates were not able to:

(i) explain Management Accounting and some characteristics of cost accounting information;

(ii) highlight the costs associated with labour turnover;

(iii) explain standard costing and list the benefits of variance analysis;

(iv) explain budget committee;

(v) classify costs under various basses;

(vi) compute the profit or loss at the proposed output level after computing break-even point in units and value;

(vii) prepare a statement to reconcile profits disclosed by Financial Accounts and Cost Accounts.

A. SUGGESTED REMEDIES FOR THE WEAKNESSES

(i) The explanations of the characteristics of Cost Accounting information and their

implication on the accounts should be emphasized.

(ii) The types of costs associated with labour turnover should be well thought.

(iii) Standard costing as well as the benefits of variance analysis should be well explained to candidates.

(iv) The composition and functions of the budget committee should be well explained.

(v) The teaching of cost classification as well as the classification of the various types of cost in the cost build up should be emphasized.

(vi) The teaching of the determination of cost of various types of services should be improved.

(vii) The preparation of a statement to reconcile the profit of Cost and Financial Accounts including the format of presentation of the statement should be emphasized.

It is the hope of our team that candidates will perform better when teachers and candidates go through this summary of strengths, WASECE candidates’ weaknesses in Principles of Cost Accounting and remedies and apply same

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