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Ms.R.Geetha’s Paper 4 Checklist for June 2007 for Groups 1 & 3

	Key areas that MUST be covered	Date
MATERIAL
	Meaning of: Raw materials Work in progress Finished good
	Purchase cycle – function of specific documents
	Buffer/safety stock – formula and functions To meet sudden sales/production demands To counter seasonal fluctuations To take advantage of higher discounts for bulk orders
	FIFO, LIFO, CWA and Periodic pricing stock valuations
	FIFO vs. LIFO advantages & disadvantages which method gives higher stock valuation when market prices are higher? Why?
	EOQ, holding cost & ordering cost reasons components of c & h
	Periodic stocktaking vs. Continuous stocktaking
	Perpetual inventory system
	Stock discrepancies reasons how to avoid
	Stock control – FORMULA reorder level min/max stock control levels average stock
	Common fallacy (pg 95 Text)
LABOUR
	Components of labour cost gross pay, net pay, NIC etc.
	Components of direct & indirect labour cost
	Documents – job card etc.
	Use/benefits of payroll accounting system
	Overtime premium = direct or indirect? When/Why?
	Piecework scheme & other incentive schemes
	Labour turnover, efficiency & utilisation ratios (pg 115 Text)
EXPENSES
	Revenue vs. Capital expenditure
	Direct vs. indirect expenses
	Depreciation definition formula – straight line & reducing balance