AKUAMICAH Ltd has been in business for the past 10 years. In the last meeting of the Board of Directors, it was proposed that a cost accounting system be established and a Cost Accountant employed. However, the Managing Director disputed this proposal on the grounds that there is no need for a cost accounting system. He also argued that there is no need for a Cost Accountant as the Accountant of the company is enough for all accounting functions. You are a trainee accountant who has just joined the company as an intern. Required: Write a report to the MD explaining what a cost accounting system is and discuss the argument by the Managing Director.
AKUAMICAH Ltd has been in business for the past 10 years. In the last meeting of the Board of Directors, it was proposed that a cost accounting system be established and a Cost Accountant employed. However, the Managing Director disputed this proposal on the grounds that there is no need for a cost accounting system. He also argued that there is no need for a Cost Accountant as the Accountant of the company is enough for all accounting functions. You are a trainee accountant who has just joined the company as an intern. Required: Write a report to the MD explaining what a cost accounting system is and discuss the argument by the Managing Director.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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QUESTION 1
AKUAMICAH Ltd has been in business for the past 10 years. In the last meeting of the Board of Directors, it was proposed that a cost accounting system be established and a Cost Accountant employed. However, the Managing Director disputed this proposal on the grounds that there is no need for a cost accounting system. He also argued that there is no need for a Cost Accountant as the Accountant of the company is enough for all accounting functions. You are a trainee accountant who has just joined the company as an intern. Required: Write a report to the MD explaining what a cost accounting system is and discuss the argument by the Managing Director.
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