This qualification is suitable for candidates who are working, or are preparing to work, in an accounting environment at a level that requires a high level of cost accounting knowledge and skill, as well as a basic understanding of cost accounting principles and practice. Candidates attempting this qualification should have the knowledge and skills equivalent to the FIC level 1 Book-keeping qualification and Costing Accounting (Level 2) in order to understand the relationships between financial accounting and cost accounting, and professional accounting terms.
COST ACCOUNTING (LEVEL III)
The aim of this qualification are to enable candidates to develop:
TARGET AUDIENCE AND CANDIDATE PROGRESSION
The examination is intended for those who work, or aspire to work, in the more advanced areas of accountancy. The complex business world of today makes Cost Accounting a necessity for all types of managers. Organizations must attempt to acquire and utilize their resources in the best way possible, and managers need reliable accounting data to anticipate the future and control day-to-day activity. There is an increasing demand for employees who are capable of providing such important information.
Candidates attempting this examination must be totally familiar with the basic cost accounting principles, methods and terminology as contained in the FIC Cost Accounting (Level 2) syllabus and it is recommended that a pass is obtained at this level before proceeding to this Cost Accounting (Level 3) examination. Candidates who achieve Cost Accounting (Level 3) may progress to the FIC examination of Cost Accounting and Quantitative Techniques (Level 4)
LEVEL OF ENGLISH REQUIRED
Candidates should have a standard of English equivalent to intermediate or upper intermediate for Business.
STRUCTURE OF THE QUALIFICATION
The Certificate of Cost Accounting (Level 2) is a single unit qualification that consists of the range of topics detailed below:
GUIDED LEARNING HOURS
FIC recommends that 140-160 Guided Learning Hours (GLHs) provide suitable course duration for an ‘average’ candidate at this level. This figure includes direct contact hours as well as other time when candidates ‘work is being supervised by teachers. Ultimately, however, it is the responsibility of training centers to determine the appropriate course duration based on their candidates ‘ability and level of existing knowledge. FIC experience indicates that the number of GLHs can vary significantly from one course to another.
The examination will assess the candidate’s ability to:
Candidates will need to show they can:
The time allowed for the examination is 3 hours, with the examination paper consisting of 5 questions. Candidates are required to answer all 5 questions, all questions carry equal marks. The emphasis of the paper will be quantitative; however, descriptive elements are incorporated into questions.
COVERAGE OF SYLLABUS TOPICS IN EXAMINATIONS
At least 1 question from each of the following syllabus topics will be set in each examination:
Typical tasks that will be used to assess candidates:
(a) preparation of:
(b) calculation of:
(c) support calculations and statements with:
This list is not exhaustive but is intended to show typical tasks that candidates must perform in the examination.
A positive marking approach is used; although candidates will be penalized for initial calculation errors, they will gain marks for consequential ‘own figures’ as long as the correct use of principles has been demonstrated.
Successful candidates will be awarded the certificate in Cost Accounting (Level 2) based on the achievement of the percentages and grades below: