ACCA F2 Management Accounting - 2010 - Study text - Emile Woolf Publishing
Подождите немного. Документ загружается.
ACCA
F2 Study Text
Management Accounting
PublishingPublishing
ACCA
PublishingPublishing
Visit us at
www.emilewoolfpublishing.com
distancelearning@emilewoolfpublishing.com tel: +44(0) 1483 225746
Using a blended learning approach, our distance learning package will steer you towards
exam success.
Our aim is to teach you all you need to know and give you plenty of practice, without
bombarding you with excessive detail. We therefore offer you the following tailored package:
ACCA Distance Learning Courses
Learn quickly and efficiently
•
Access to our dedicated distance learning website – where you’ll find a regular blog from the distance
learning department – reminders, hints and tips, study advice and other ideas from tutors, writers and
markers – as well as access to your course material
•
Tutor support – by phone or by email, answered within 48 hours
•
The handbook – outlining distance learning with us and helping you understand the ACCA course
•
The key study text – covering the
syllabus without excessive detail and
containing a bank of practice questions
for plenty of reinforcement of key topics
•
A key study guide – guiding you through
the study text and helping you revise
•
An online question bank for additional
reinforcement of knowledge
Study phase
•
An exam kit – essential for exam
preparation and packed with exam-
standard practice questions
•
2 tutor-marked mock exams to be sat
during your studies
•
Key notes - highlighting the key
topics in an easy-to-use format
Revision phase
Total price: £160.95
ACCA
Paper
F2
Management Accounting
Publishing
Publishing
Welcome to Emile Woolf‘s study text for
Paper F2 Management Accounting which is:
Written by tutors
Comprehensive but concise
In simple English
Used around the world by Emile Woolf Colleges including
China, Russia and the UK
ii
Go to www.emilewoolfpublishing.com for Q/As, Notes & Study Guides © EWP
Secondeditionpublishedby
EmileWoolfPublishingLimited
CrowthorneEnterpriseCentre,CrowthorneBusinessEstate,OldWokinghamRoad,
Crowthorne,BerkshireRG456AW
Email:info@ewiglobal.com
www.emilewoolfpublishing.com
©EmileWoolfPublishingLimited,September2010
Allrightsreserved.Nopartofthis publicationmaybereproduced,storedinaretrieval
system,ortransmitted,
inanyformorbyanymeans,electronic,mechanical,photocopying,
recording,scanningorotherwise,withoutthepriorpermissioninwritingofEmileWoolf
PublishingLimited,orasexpresslypermittedbylaw,orunderthetermsagreedwiththe
appropriatereprographicsrightsorganisation.
Youmustnotcirculatethisbookinany
otherbindingorcoverandyoumustimpose
thesameconditiononanyacquirer.
Notice
EmileWoolfPublishingLimitedhasmadeeveryefforttoensurethatatthetimeof
writingthecontentsofthisstudytextareaccura te, butneitherEmileWoolfPublishing
Limitednoritsdirectorsoremployees
shallbeunderanyliabilitywhatsoeverforany
inaccurateormisleadinginformationthisworkcouldcontain.
BritishLibraryCataloguinginPublicationsData
AcataloguerecordforthisbookisavailablefromtheBritishLibrary.
ISBN:978‐1‐84843‐004‐4
PrintedandboundinGreatBritain.
Acknowledgements
Thesyllabusandstudyguidearerep roducedbykindpermissionoftheAssociationof
CharteredCertifiedAccountants.
© EWP Go to www.emilewoolfpublishing.com for Q/As, Notes & Study Guides iii
Paper F2
Management Accounting
C
Contents
Page
Syllabus and study guide 1
Formulae 9
Chapter 1: The nature and purpose of cost and management accounting 11
Chapter 2: Cost classification 25
Chapter 3: Cost behaviour and cost estimation 41
Chapter 4: Business mathematics and computer spreadsheets 61
Chapter 5: Accounting for materials and labour 87
Chapter 6: Accounting for overheads 125
Chapter 7: Accounting for costs: ledger entries 161
Chapter 8: Marginal costing and absorption costing 177
Chapter 9: Job costing, batch costing and service costing 193
Chapter 10: Process costing 203
Chapter 11: Budgeting 239
Chapter 12: Standard costing and variance analysis 257
Chapter 13: Cost-volume-profit (CVP) analysis 305
Chapter 14: Relevant costs 321
Chapter 15: Limiting factors and linear programming 339
Appendix: Spreadsheets 361
Answers to exercises and practice multiple choice questions 371
Practice questions 401
Answers to practice questions 423
Index 451
iv Go to www.emilewoolfpublishing.com for Q/As, Notes & Study Guides © EWP
Note about the F2 examination paper and practice questions in this study
text
The F2 examination paper consists of 50 multiple choice questions (or ‘objective
testing’ questions). It is therefore important that you should test your ability in
answering multiple choice questions (MCQs) when you study this subject.
Some MCQs are included at the end of each chapter in this text as practice questions. If
you want more practice, there are many more MCQs in the Examination Kit produced
by Emile Woolf Publishing Limited (EWP) for the F2 examination and also in EWP’s
distance learning materials for F2.
We take the view, however, that MCQs on their own are insufficient for practising and
testing your ability. In order to understand management accounting properly, it is
important to have an appreciation of the ‘bigger picture’ and to see ‘techniques’ or
‘methods’ of management accounting in their entirety. We have therefore included a
number of longer practice questions at the end of this study text that deal with syllabus
topics in a unified way. These questions deal with each topic at a suitable level for the
F2 examination, even though they are too long for the examination itself.
© EWP Go to www.emilewoolfpublishing.com for Q/As, Notes & Study Guides 1
Paper F2
Management accounting
S
Syllabus and study guide
Aim
To develop knowledge and understanding of how to prepare and process basic cost
and quantitative information to support management in planning and decision-
making in a variety of business contexts.
Main capabilities
On successful completion of this paper, you should be able to:
A Explain the nature and purpose of cost and management accounting
B Describe costs by classification, behaviour and purpose
C Apply essential business mathematics and use computer spreadsheets
D Explain and apply cost accounting techniques
E Prepare and coordinate budgets and standard costing for planning, feedback
and control
F Using management accounting techniques to make and support decision-
making
Paper F2: Management accounting
2 Go to www.emilewoolfpublishing.com for Q/As, Notes & Study Guides © EWP
Rationale
The syllabus for Paper F2, Management Accounting, introduces candidates to costing
principles andtechniques, and elements of management accounting which are used
tomakeandsupportdecision‐making.
The syllabus starts by introducing the nature and purpose of cost accounting,
distinguishing it clearly from financial accounting. The next section is
cost
classification and behaviour. This is followed immediately by applied business
mathematics and the use of computer spreadsheets, which are essential for
candidatestounderstandthemeasurementandbehaviourofbusinesscostsandtobe
abletoclassifythemaccordingly.
Thenextareaofthesyllabusrepresentsacentralpart
ofthispaperanditintroduces
candidates to a variety of costing techniques used in business. It is followed by the
preparationanduseofbudgetingandstandardcostingasessentialtoolsforplanning
and controlling business costs. The syllabus finishes with an introductionto the use
ofmanagementaccountingin
supportingdecision‐making.
Syllabus content
A The nature and purpose of cost and management accounting
1 Accounting for management
2 Cost and management accounting versus financial accounting
B Cost classification, behaviour and purpose
1 Production and non-production costs
2 Direct and indirect costs
3 Fixed and variable costs
C Business mathematics and computer spreadsheets
1 Dealing with uncertainty
2 Statistics for business
3 Use of computer spreadsheets
D Cost accounting techniques
1 Accounting for materials
2 Accounting for labour
3 Accounting for overheads
4 Marginal and absorption costing
5 Job and batch costing
6 Process costing
7 Service/operation costing
Syllabus and study guide
© EWP Go to www.emilewoolfpublishing.com for Q/As, Notes & Study Guides 3
E Budgeting and standard costing
1 Nature and purpose of budgeting
2 Functional budgets
3 Flexible budgets and standard costing
4 Basic variance analysis under absorption and marginal costing
5 Reconciliation of budgeted profit to actual profit
F Short-term decision-making techniques
1 Cost-volume-profit analysis
2 Relevant costing
3 Limiting factors
Approach to examining the syllabus
The syllabus is assessed by a two hour paper-based or computer-based examination.
Questions will assess all parts of the syllabus and will include both computational
and non computational elements. The examination will consist of 40 two-mark
questions, and 10 one-mark questions.
Paper F2: Management accounting
4 Go to www.emilewoolfpublishing.com for Q/As, Notes & Study Guides © EWP
Study guide
Thisstudyguideprovidesmoredetailedguidanceonthesyllabus.Youshoulduse
thisasthebasisofyourstudies.
A The nature and purpose of cost and management accounting
1 Accounting for management
(a) Distinguish between data and information.
(b) Identify and explain the attributes of good information.
(c) Outline the managerial processes of planning, decision making
and control.
(d) Explain the difference between strategic, tactical and operational
planning.
(e) Distinguish between cost, profit, investment and revenue centres.
(f) Describe the differing needs for information of cost, profit,
investment and revenue centre managers.
2 Cost and management accounting versus financial accounting
(a) Describe the purpose and role of cost and management accounting
within an organisation’s management information system.
(b) Compare and contrast financial accounting with cost and
management accounting.
B Cost classification, behaviour and purpose
1 Production and non-production costs
(a) Explain and illustrate production and non-production costs.
(b) Describe the different elements of production cost - materials,
labour and overheads.
(c) Describe the different elements of non-production cost –
administrative, selling, distribution and finance.
(d) Explain the importance of the distinction between production and
non-production costs when valuing output and inventories.
2 Direct and indirect costs
(a) Distinguish between direct and indirect costs in manufacturing
and non-manufacturing organisations.
(b) Identify examples of direct and indirect costs in manufacturing
and non-manufacturing organisations.
(c) Explain and illustrate the concepts of cost objects, cost units and
cost centres.
3 Fixed and variable costs
(a) Describe and illustrate, graphically, different types of cost
behaviour.
(b) Explain and provide examples of costs that fall into the categories
of fixed, stepped fixed and variable costs.
(c) Use high/low analysis to separate the fixed and variable elements
of total costs including situations involving stepped fixed costs
and changes in the variable cost per unit.