This article analyzes coverage of the theory of account examinations conducted by the Association of International Accountants, Great Britain. The questions and problems which have appeared in the past are probably a good indication of what may be expected in future examinations for Certified Public Accountants course and the analogy developed by the author would indicate that over 90 per cent of the questions are either under the category of inventories or the application of overhead in process cost, job cost, or standard cost systems. This article will direct the reader's attention to the non-inventory phases of cost accounting appearing in the examinations studied. Examiners expect a candidate to be familiar enough with the field of cost accounting to be able to define and interpret the basic terms and principles of this phase of accounting. To attempt in this study to define all of the cost accounting terms in general use would result in a supplementary paper. Accounting for inventories presents a myriad of acute problems and the accounting profession as a whole has directed considerable thought to this area in recent years. Many separate studies and texts have been developed on this subject.