This question is based on ‘The Lekki Headmaster’. What was Bepo’s initial reaction when he first considered renewing his passport?

Cost accounting determines product/service costs for pricing, control, and decision-making. Direct costs: traceable to product (materials, direct labor). Indirect costs (overheads): shared across products.

Costing methods: job costing (each job separate), process costing (continuous production), activity-based costing (allocate by activities driving costs). Choice depends on production type.

Cost information supports: pricing decisions, make-or-buy decisions, profitability analysis, budgeting, cost control. Accurate costing is essential for competitiveness.