ACCA Paper F2 Management accounting - Free ebook

144 Pages·2010·2.49 MB·English

ACCA Paper F2 – Management accounting

Course slides

Slide 6

Syllabus

A
The nature and purpose of cost and
management accounting

B
Cost classification, behaviour and purpose

C
Business mathematics and computer
spreadsheets

D
Cost accounting techniques

E
Budgeting and standard costing

F
Short-term decision-making techniques

Slide 7

Format of the Exam

Format of the Exam
Marks

1 mark
question

10 questions

Paper based exam: All multiple choice
with a choice of 2 or 3 answers.
Predominantly „wordy‟ questions.

10

2 mark
questions

40 questions

Paper based exam: All multiple choice
with a choice of 4 answers including
words and calculations.

80

Total
90

Slide 8

The BPP Learning Media classroom slides

What do these slides cover?

– A selection of key areas of the syllabus

Using the slides

– Use the slides as a point of reference
– Add detail by talking around the slides (eg using

material from the corresponding Study Text chapter)

– Consider adding slides yourself to suit your course
– Recommend students attempt appropriate questions

from the Practice & Revision Kit

Chapter 1

Information for

management

Study Text Chapter 1

Slide 10

Purpose

• Assist management in running their

business to achieve an overall objective

• What is the overall objective of a

business?

Slide 11

Data and information

• Data is the RAW MATERIAL

• Information is the PROCESSED DATA

Slide 12

Planning, control and decision making

• Planning – Long term strategies

– Short term targets

• Control – Performance of the organisation

– Review corporate plan

• Decision making – autonomy of managers

Slide 13

Key roles of a management accountant

• Costing

• How to put a cost on our products and services

• Decision-making

• What to produce/how should we finance it etc

• Planning

• Assessment of business requirements/budgeting

• Control

• Assessing inefficiencies

• Performance Evaluation

• Comparison to targets

Chapter 2

Cost classification

Study Text Chapter 2

Slide 15

Introduction

• Arrange costs into logical groups

– By function e.g. production, admin, finance
– By nature e.g. labour, materials, stationery

• Grouping by function:

Pool of costs

Production costs
Non production costs

Slide 16

Introduction

• Grouping by nature:

Pool of costs

materials
Labour
Expenses

Slide 17

Cost classification

£

Production costs
X

Non-production costs X

TOTAL COST/EXPENSES
X

Direct
Prod‟n cost

Indirect
Prod‟n cost

Admin costs

Selling &
Distribution

Slide 18

Cost classification

Non-production costs

Direct Production costs

Direct materials
X

Direct labour
X

Direct expenses
X

Indirect Production costs

Indirect materials
X

Indirect labour
X

Indirect expenses
X

Total Production costs
X

TOTAL COSTS
X

Administration costs
X

Selling and distribution costs
X

Slide 19

A typical cost card for a cost unit

Direct Production costs

Direct materials (5kg @ $3/kg)
15.00

Direct labour (3hrs @ $6/hr)
18.00

PRIME COST
33.00

Indirect Production costs

Variable overheads
2.00

Fixed overheads
3.00

FULL PRODUCT COST
38.00