Read the STANDARD

TKI Accounting Assessment Resources

Download all these exemplars and commentary (PDF, 414KB)

For Excellence, the student needs to demonstrate comprehensive understanding of a job cost subsystem for an entity.

This involves:

• justifying the application of elements of a job cost subsystem to an entity to enable an entity to maintain its viability
• processing detailed financial information to justify the cost of a job.

The student has accurately processed detailed job costing transactions to justify the cost of the job. The justification is evident in the student’s decision to calculate overheads using machine hours as the cost driver, based on the information provided in the resource material (1).

The purpose and benefits of operating a job cost subsystem have been explained (2).

The student has demonstrated comprehensive understanding of how the subsystem contributes to the company’s ability to remain viable. They have linked reduced profitability of production jobs to the ability to raise finance, and have understood that expanding the bespoke aspect of the business would have reputational and growth benefits (3). 

The student has provided justification of why machine hours is an appropriate cost driver, and why a large mark-up is appropriate for the product being manufactured (4).

Accurate explanations of accounting entries within the subsystem have been provided (5).

For Merit, the student needs to demonstrate in-depth understanding of a job cost subsystem for an entity.

This involves:

• explaining the application of elements of a job cost subsystem to an entity to maintain its viability
• processing detailed financial information to determine the cost of a job.

The student has processed detailed job costing transactions on job cost records, in journals and ledgers (1).The purpose of a job cost subsystem has been explained (2) with links made to how elements of the subsystem, such as internal controls, enable the business to be economically viable (3).

The student’s processing is sufficiently detailed for Excellence (1).

This evidence does not reach Excellence since this standard sits in the Systems cell of the Accounting matrix - further detail is required in the narrative. The student could explain specific consequences of  missing out on bespoke orders and of budgeted profit not being met (4).

For Merit, the student needs to demonstrate in-depth understanding of a job cost subsystem for an entity.

This involves:

• explaining the application of elements of a job cost subsystem to an entity to maintain its viability
• processing detailed financial information to determine the cost of a job.

The student has processed detailed job costing transactions on job cost records, in journals and ledgers (1).

The purpose of a job cost subsystem has been explained (2) and the student has drawn a relationship between elements of the subsystem and the ability of East-West Sails to continue to operate into the future (3).

For a more secure Merit, the student could provide more detail around why the overhead rate may be inaccurate. The internal control components of materials requisition forms and time sheets, and how these contribute to viability, could be explained (4).

For Achieved, the student needs to demonstrate understanding of a job cost subsystem for an entity.

This involves:

• explaining the purpose and elements of a job cost subsystem for an entity
• processing financial information to determine the cost of a job
• applying elements of a job cost subsystem to an entity to maintain its viability.

This student has processed job costing transactions on job cost records, in journals and ledgers (1).

The purpose of a job cost subsystem has been explained (2). Some connections between the subsystem and the viability of the firm have been explained (3).

To reach Merit, the student could explain how the overhead rate is calculated, explain why material requisition forms need to be authorised, and accurately apply a 130% mark-up to the cost of production (4).

For Achieved, the student needs to demonstrate understanding of a job cost subsystem for an entity.

This involves:

• explaining the purpose and elements of a job cost subsystem for an entity
• processing financial information to determine the cost of a job
• applying elements of a job cost subsystem to an entity to maintain its viability.

This student has processed job costing transactions on job cost records, in journals and ledgers (1).

The purpose of a job cost subsystem has been explained (2) with limited explanations provided of how the subsystem contributes to East-West Sails’ ability to remain sustainable (3).

For a more secure Achieved, the student would recognise that GST needs to be included in the selling cost to the client, and would demonstrate their understanding of over- and under-application of overheads (4).

For Achieved, the student needs to demonstrate understanding of a job cost subsystem for an entity.

This involves:

• explaining the purpose and elements of a job cost subsystem for an entity
• processing financial information to determine the cost of a job
• applying elements of a job cost subsystem to an entity to maintain its viability.

This student has processed job costing transactions on job cost records, in journals and ledgers (1).

The purpose of a job cost subsystem has been explained (2) and the student has demonstrated understanding of several elements of the subsystem (3).

To reach Achieved, the student would go beyond identifying that overcharging clients is better for Cool Canvas than undercharging, to explain how over-applying overheads may cause the selling price to be uncompetitive, or under-applying them may impact on the business’s ability to cover its overhead costs (4).