ICAG Paper 1.4 Cost & Management Accounting case studies
ICAG Paper 1.4 Cost & Management Accounting · Put your knowledge to work in context.
ICAG Paper 1.4, Cost and Management Accounting, is one of the professional-level papers in the Chartered Accountants qualification offered by the Institute of Chartered Accountants, Ghana (ICAG), a body established by Act of Parliament, ICAG Act 2020, Act 1058. The paper suits candidates who have completed the foundation stage and are building the costing and management accounting competence expected of a chartered accountant in practice, industry or the public sector. The ICAG Paper 1.4 Cost & Management Accounting case studies are 5 cases and about 3,376 words.
1Kelbrook Precision Coatings: high–low analysis across a step cost
Kelbrook Precision Coatings operates a powder-coating plant and quotes for contract work on a machine-hour recovery basis. The management accountant extracted six months of total production overhead, together with machine hours: 2,200 hours £79,600; 2,600 hours £86,800; 2,900 hours £92,200; 3,400 hours £110,200; 3,800 hours £117,400; 4,200 hours £124,600.
659 words, about 3 min2Northgate Chemicals: abnormal loss and a disputed normal loss allowance
Northgate Chemicals runs a single continuous process. In March, 10,000 litres of raw material were introduced at a cost of £48,000.
645 words, about 3 min3Brindley Health & Leisure Club: flexed budget and a 'conservative' target
Brindley Health & Leisure Club prepares a monthly budget at 1,800 members: subscription income £36 per member, variable running costs £8 per member and fixed costs £38,000, giving a budgeted surplus of £12,400. In November, membership averaged 1,600 and subscription income was £54,900; variable costs were £13,400 and fixed costs £39,700.
678 words, about 3 min4Harlow Additives: favourable material variances that hide a quality problem
Harlow Additives blends two chemicals, Alfa and Beta, into a fuel additive. The current standard for a batch producing 4,500 litres of saleable additive specifies 5,000 litres of input: 3,000 litres of Alfa at £2.40 per litre and 2,000 litres of Beta at £3.60 per litre.
670 words, about 3 min5Delmorton Group: transfer pricing with scarce capacity and an ROI gate
Delmorton Group comprises two divisions. Division A manufactures component X at a variable cost of £28 and sells it on the open market at £48; its capacity is 60,000 units a year and external demand at £48 is 45,000 units.
724 words, about 4 min