JD2023 Chap 1 coding and the role of the trainee accountant

Which of the following would MOST likely be a responsibility of a trainee accountant?

• Producing a schedule of budgeted and actual costs to calculate variances

• Approving employee recruitment

• Authorising a contract for a new computerised accounting system

• Deciding on procedures for the authorisation of invoices

Consider the following tasks:

(1) Setting selling prices for products and services

(2) Approving departmental expenditure for control purposes

(3) Calculating the quantity of raw materials in the store

(4) Calculating wages for employees working on special shifts

Which tasks are likely to be carried out by a trainee accountant?

• 1 only

• 1 and 2 only

• 3, and 4 only

• 1, 2, 3, and 4

Which of the following are main purposes of cost coding?

• To enable a logical and systematic arrangement of costing records

  
  

• To facilitate electronic data processing

• To provide confidentiality

• To share production costs between products

Which of the following describes a hierarchical code?

• Each digit represents a classification, and each digit further to the right represents a smaller subset than those to the left.

• A digit, usually the first one, indicates the classification of the item

• The code is an abbreviation of the item being coded

• Each digit of the code gives information about the item

Which one of the following statements explain why coding systems are used?

• A code is more suited to communicating wider issues than a description

• The use of codes facilitates data processing

• A code is briefer than a description so saves time

• A code is more precise than a description so reduces ambiguity