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Cost per patient-year N$22 000 N$29 800 N$22 667 1 3 Advantages (benefits) which Medicare could obtain by implementing an ABC system: 1 Medicare can gain a more detailed understanding of costs and cost drivers This is useful from a cost management perspective 2 ABC will help Medicare identifying which programs are the most costly to operate 3
• The amount of pension cost for defined benefit plan shall be determined by the use of an immediate-gain actuarial cost method • The amount of pension costs for a cost accounting period are assignable only to that period • Costs are allocable to the extent that they are funded • Effective date: March 30, 1995 - Next cost accounting period
1 Explain the meaning and scope of cost accounting; 2 S tate the objectives of cost accounting; 3 D ifferentiate between cost accounting and financial accounting; 4 Comprehend the importance of cost accounting ; 5 Understand the Objections to Cost Accounting and rebuttal thereof ; 6
ASSIGNMENT 1 QUESTION 1 [16 Marks] a) No Statement Financial Accounting Management Accounting Mark 1 Prepares financial statements 2 Emphasis is on the past rather than the future 3 Focuses on parts as well as the entire enterprise 4 It is subject to the principles of GAAP 5
ASSIGNMENT ONE QUESTION 1 (25 Marks) a ) The financial consequences would be as follows; If the Oshakati depot is closed the sales revenue of N$1 5 million will be forgone However, tyres cost of N$900 000, wages and salaries of N$220 000 and 15 of overheads (15 X N$430 000 = N$64 500) would no longer be incurred