ACCA COURSE NOTES - gaodun.com

1 MANAGEMENT ACCOUNTINGACCA F2 FIA FMAOpenTuition COURSE NOTES can be downloaded FREE from belongs to - please do not support piracy by downloading from other for the latest updates, watch free video lectures and get free tutor support on the forumsACCA COURSE NOTESDECEMBER 2014 EXAMINATIONSP lease spread the word about OpenTuition, so that all acca students can with your support can the site exist and continue to provide free study materials!THE BEST THINGS IN LIFE ARE FREEFREE acca RESOURCES BY paper (free COURSE NOTES / lectures / revision lectures / tests / flashcards and more - on line on )F1 Accountant in Business / FAB Foundations in Accountancy F2 Management Accounting / FMA Foundations in AccountancyF3 Financial Accounting / FFA Foundations in AccountancyF4 Corporate & Business Law (English & global )F5 Performance ManagementF6 Taxation (UK)F7 Financial ReportingF8 Audit and AssuranceF9 Financial ManagementP1 Governance, Risk & EthicsP2 Corporate ReportingP3 Business AnalysisP4 Advanced Financial ManagementP5 Advanced Performance ManagementP7 Advanced Audit & Assuranceand CAT/FIA COURSE NOTES are also available on the siteTo fully benefit from these notesplease watch the free acca Lectures on the OpenTuition websiteFree acca COURSE NOTES Free acca lectures Free tests Free tutor support StudyBuddy Largest acca forums OpenTuition COURSE NOTES can be downloaded FREE from belongs to - please do not support piracy by downloading from other for the latest updates.

2 Watch free video lectures and get free tutors support on the forumsaDecember 2014 Examinations acca F2 / FIA FMAFree lectures are available on Accounting for Management 12 Sources of Data 53 Presenting Information 94 Cost Classification 135 Inventory Control 236 Accounting for labour 337 Accounting for Overheads 378 The Management Accountant s Profit Statement Absorption Costing 459 The Management Accountant s Profit Statement Marginal Costing 4910 Process Costing Introduction 5711 Process Costing Losses 6112 Process Costing Work-in-Progress 6513 Process Costing Joint Products 7314 Alternative cost accounting 7915 Budgeting 8116 Behavioural aspects of budgeting 8917 Semi-Variable Costs 9118 Time Series Analysis 9919 Index Numbers 10320 Interest 10921 Investment Appraisal 11522 Variance Analysis 12123 Performance Measurement Overview 13124 Financial Performance Measurement 13325 Non-financial performance measurement 13926 Divisional Performance Measurement 143 Answers To Examples 147 Answers To Multiple Choice Tests 171 paper F2 Spread the word about that all acca Students can benefit from free acca resourcesPrint and share our posterFREE acca !

3 COURSE NotesFREE acca !Lectures & TestsFind! acca !StudyBuddyACCA !Tutors on the ForumsFree resources for accountancy studentsFree resources for acca students100% Free300,000 members can t be wrongFree COURSE NOTES , Free lecturesFree Tests and FlashcardsFree Forums with tutor supportStudyBuddy FinderChat and Study Groupsand much moreFree acca COURSE NOTES Free acca lectures Free tests Free tutor support StudyBuddy Largest acca forums paper F2 FORMULAEFORMULAE SHEETR egression analysisEconomic order quantityEconomic batch quantitya= yn-b xnb=n xy- x yn x -( x)r=n xy- x y(22nn x -( x) )(n y -( y) )=2C DC=2C DC (1-DR22 220h0h))a= yn-b xnb=n xy- x yn x -( x)r=n xy- x y(22nn x -( x) )(n y -( y) )=2C DC=2C DC (1-DR22 220h0h))a= yn-b xnb=n xy- x yn x -( x)r=n xy- x y(22nn x -( x) )(n y -( y) )=2C DC=2C DC (1-DR22 220h0h))iDecember 2014 Examinations acca F2 / FIA FMAFree lectures are available on acca COURSE NOTES Free acca lectures Free tests Free tutor support StudyBuddy Largest acca forums 8 December 2014 Examinations acca F2 / FIA FMAF ormulaE Chapter 2 iiDecember 2011 Examinations paper F2iiFree acca COURSE NOTES Free acca lectures Free tests Free tutor support StudyBuddy Largest acca forums 9 End of Question PaperiiiDecember 2014 Examinations acca F2 / FIA FMAF ormulaE Chapter 2 iiiDecember 2011 Examinations paper F2 Free acca COURSE NOTES Free acca lectures Free tests Free tutor support StudyBuddy Largest acca forums ivDecember 2014 Examinations acca F2 / FIA FMAFree lectures are available on acca COURSE NOTES Free acca lectures Free tests Free tutor support StudyBuddy Largest acca forums Chapter 1 ACCOUNTING FOR MANAGEMENT1 IntroductionThe purpose of

4 Management accounting is to assist management in running the business in ways that will improve the performance of the Data and informationOne way of assisting management is to provide them with good information to help them with their information can be provided to them in different ways, but is usually in the form of reports. For example, a report analysing costs of producing each of several products may assist management in deciding which products to is the management accountant who will be expected to provide the information, and in order to do so he/she needs to collect data. Data consists of the facts that are gathered and stored. Data has no clear meaning until it is processed analysed and sorted into What makes good information?Good quality information should: have a purpose and be relevant for the purpose be timely be understandable (to the manager using it) be accurate be complete (but not excessive) be communicated to the right person be communicated by an appropriate channel (for example, be printed or be sent electronically)1 December 2014 Examinations acca F2 / FIA FMAFree lectures are available on acca COURSE NOTES Free acca lectures Free tests Free tutor support StudyBuddy Largest acca forums 4 The main managerial processesThe main areas of management accounting are: CostingCost accounting is identifying the cost of producing an item (or providing a service) in order to, for example, assist in deciding on a selling price.

5 Plan how many staff will be required in the factory next year Decision decide on what selling price to charge for a new product check month-by-month whether the company is over or under spending on wages5 The different levels of planning strategic planninglong-term plans ( 5 to 10 years) for the what new offices to open? / what new products to launch? tactical planningmedium-term, more detailed, plans usually involving producing budgets for the next how many staff to employ next year? operational planningshort-term planning and which supplier to choose for a purchase next weekDecember 2014 Examinations acca F2 / FIA FMAA ccounting for MAnAgEMEnt chapter 1 2 Free acca COURSE NOTES Free acca lectures Free tests Free tutor support StudyBuddy Largest acca forums 6 C omparison of management accounting with financial accountingExamplE 1 Financial AccountingManagement Accounting3 December 2014 Examinations acca F2 / FIA FMAA ccounting for MAnAgEMEnt chapter 1 Free acca COURSE NOTES Free acca lectures Free tests Free tutor support StudyBuddy Largest acca forums TESTQuEstion 1 The following statements relate to financial accounting and to cost accounting:(i) The main users of financial accounting information are external to an organisation.

6 (ii) Cost accounting is that part of financial accounting which records the cash received and payments made by an of the following statements are true?A Statements (i) and (ii) are both Only statement (i) is Only statement (ii) is 2 Data is information that has been processed in such a way as to be meaningful to its this statement true or false?A Tr ueB FalseQuEstion 3 The following statement refers to a quality of good information:The cost of producing information should be greater than the value of the benefits of that information to this statement true or false?A Tr ueB False December 2014 Examinations acca F2 / FIA FMAA ccounting for MAnAgEMEnt chapter 1 4 Free acca COURSE NOTES Free acca lectures Free tests Free tutor support StudyBuddy Largest acca forums Chapter 2 SOURCES OF DATA1 IntroductionThe management accountant needs data in order to be able to process it into chapter lists various sources of data and also various sampling Primary and secondary sources of dataPrimary data are data that have been collected for the specific data are data that have been collected for some other purpose but which we then use for our Internal and external sources dataInternal data are data collected from our own records.

7 These are the main source of primary data are data collected from elsewhere the internet, government statistics, financial newspapers. These will be secondary SamplingIt is common to collect data from a sample rather than from the whole population. Data from the sample are used as representative of the whole Sampling methodsYou should be aware of the following methods of sampling: random sampling Every item in the population has an equal chance of being selected systematic sampling Select (for example) every 10th item in the population5 December 2014 Examinations acca F2 / FIA FMAFree lectures are available on acca COURSE NOTES Free acca lectures Free tests Free tutor support StudyBuddy Largest acca forums stratified sampling Split the population into groups, and then select at random. For example, if 60% of the population are women and 40% are men, then 60% of the sample should be women and 40% men.

8 Multistage sampling For example, suppose a company has several thousand purchase invoices filed, filling 20 files. Take a random sample of (say) 5 files, and then a random sample of (say) 20 invoices from each of these files. cluster sampling For example, suppose a company has 100 offices through the country, each issuing sales invoices. Take a random sample of (say) 5 offices and check every invoice at each of these offices. quota sampling Suppose the population is 60% women and 40% men, and that we want to question a sample of 200 total. Decide on a quota of 120 women (60%) and 80 men (40%) and then stop people as they appear until we have the required number of 2014 Examinations acca F2 / FIA FMAS ourcES of Data chapter 2 6 Free acca COURSE NOTES Free acca lectures Free tests Free tutor support StudyBuddy Largest acca forums TESTQuEstion 1A sample of people is taken with the same proportion of individuals in separate age bands as in the population as a is an example of which type of sampling?

9 A Random samplingB Systematic samplingC Stratified samplingD Cluster samplingQuEstion 2It was decided to take a sample by selecting the 12th item and thereafter every 20th is an example of which type of sampling?A Random samplingB Systematic samplingC Stratified samplingD Cluster samplingQuEstion 3 Which of the following statements about stratified sampling is true?A The sample will not be representativeB The structure of the sample will not reflect that of the populationC Knowledge is needed of each item in the populationD The sample is chosen entirely at random7 December 2014 Examinations acca F2 / FIA FMAS ourcES of Data chapter 2 Free acca COURSE NOTES Free acca lectures Free tests Free tutor support StudyBuddy Largest acca forums December 2014 Examinations acca F2 / FIA FMAS ourcES of Data chapter 2 8 Free acca COURSE NOTES Free acca lectures Free tests Free tutor support StudyBuddy Largest acca forums Chapter 3 PRESENTING INFORMATION1 IntroductionThe management accountant has to provide information to management to help them make decisions, and it is important that the information is presented to them in a form that is easy for them to may be in the form of a report, or a table of figures.

10 Or as a chart or you will not be required to produce any of these, it is important that you are aware of the various formats TablesThese are a way of presenting actual numbers in a format that is easy to arSales $ 000 2014 Examinations acca F2 / FIA FMAFree lectures are available on acca COURSE NOTES Free acca lectures Free tests Free tutor support StudyBuddy Largest acca forums 3 Charts and graphsIn many cases, management do not need to see the actual numbers (and indeed the actual numbers may confuse them). Often a chart or graph can present the information more bar bar 2014 Examinations acca F2 / FIA FMAPrEsEnting information Chapter 3 10 Free acca COURSE NOTES Free acca lectures Free tests Free tutor support StudyBuddy Largest acca forums Component bar 2014 Examinations acca F2 / FIA FMAPrEsEnting information Chapter 3 Free acca COURSE NOTES Free acca lectures Free tests Free tutor support StudyBuddy Largest acca forums Scatter 2014 Examinations acca F2 / FIA FMAPrEsEnting information Chapter 3 12 Free acca COURSE NOTES Free acca lectures Free tests Free tutor support StudyBuddy Largest acca forums Chapter 4 COST CLASSIFICATION1 Cost classificationCost classification is the arrangement of cost items into logical groups.