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CIMA BA2 Notes Chapter 8- Integrated accounting system
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CIMA BA2 Notes Chapter 8- Integrated accounting system
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BA 2 - Fundamentals of Management AccountingIntegrated accounting systems
Chapter eight
, 1
BA 2 - Integrated accounting systems. Quantia Learning
, 2
Each organisation maintains its own accounting
system to fit its needs, considering factors such as
statutory accounting requirements and
management information needs. This may range
from a simple manual systems to sophisticated
computerised systems capable of producing
detailed reports as and whenever required by
management.
In an integrated system the cost accounting
function and the financial accounting function are combined in one system, rather than
separating the two sets of accounts in two separate ledgers.
Integrated accounts is a ‘set of accounting records that integrates both financial and cost
accounts using a common input of data for all accounting purposes’ (CIMA Terminology).
These are the accounts required for an integrated accounting system:
● Raw materials control account
● Wages control account
● Production overhead control account
● Administration overhead control account
● Selling and distribution overhead control account
● Work in progress control account
● Finished goods control account
● Cost of sales control account
● Other accounts:
– Sales account
– Under-/over-absorption account
– Statement of profit or loss.
Control accounts are total or summary accounts. For example, the raw materials control account
records the total materials received and the total materials issued.
BA 2 - Integrated accounting systems. Quantia Learning
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