LSBF class notes ACCA F2

208 Pages·1994·0.74 MB·English

ACCA Paper F2

Management
Accounting

Class Notes

June 2011
© The Accountancy College Ltd January 2011
All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording or otherwise, without the prior written
permission of The Accountancy College Ltd.
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Contents
PAGE
INTRODUCTION TO THE PAPER 5
FORMULAE PROVIDED IN THE EXAMINATION PAPER 9
CHAPTER 1: INTRODUCTION TO COST ACCOUNTING 11
CHAPTER 2: COST CLASSIFICATION AND BEHAVIOUR 19
CHAPTER 3: BUSINESS MATHS 29
CHAPTER 4: MATERIALS, LABOUR, STOCK CONTROL 39
CHAPTER 5: OVERHEADS AND ABSORPTION COSTING 53
CHAPTER 6: COST BOOKKEEPING 65
CHAPTER 7: MARGINAL COSTING AND CONTRIBUTION THEORY 71
CHAPTER 8: COSTING FOR JOBS, BATCHES, AND SERVICES 79
CHAPTER 9: PROCESS COSTING, JOINT AND BY-PRODUCTS 91
CHAPTER 10: BUDGETS 113
CHAPTER 11: STANDARD COSTING AND VARIANCE ANALYSIS 123
CHAPTER 12: CVP ANALYSIS 139
CHAPTER 13: LIMITING FACTORS, LINEAR PROGRAMMING, RELEVANT COSTS 149
SOLUTIONS TO EXERCISES 161

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Introduction to the
paper

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INTRODUCTION TO THE PAPER
AIM OF THE PAPER
The aim of the paper is 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 candidates 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 Use management accounting techniques to make and support decision-
making.
Within these main capabilities, ACCA provides a more detailed guidance on the
syllabus. This can be found on pages 3 – 8 of your textbook.
RELATIONAL DIAGRAM OF MAIN CAPABILITIES
The nature and purpose of cost and management accounting
(A)
Cost classification,
behaviour and purpose
(B)

Cost

accounting techniques

(D)
Business
Mathematics
and computer
spreadsheets
Budgeting and
(C)
standard costing
(E)
Short-term decision-
making techniques
(F)

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INTRODUCTION TO THE PAPER
EXAMINER
The paper F2 examiner is David Forster, who previously examined paper 1.2.
David also wrote the F2 pilot paper, which gives us a good indication of how the
syllabus areas will be examined under F2.
David has made notable changes to the paper, both in format and syllabus content.
FORMAT OF THE EXAM PAPER
Paper F2 can be sat as a written or a computer based paper.
2 hour paper.
Both computational and non-computational questions.
90 marks in total.
40 two mark questions and 10 one mark questions.
Mix of MCQ and true or false. In the CBE equivalent, other question forms may be
used, such as multiple response, multiple-response matching, or number entry.

ALL QUESTIONS ARE COMPULSORY

ARTICLES
Five steps to multiple-choice success
17 May 2007
Steve Widberg describes a five-step approach to answering multiple-choice
questions.
Building knowledge
03 Nov 2006
Bob Souster, David Forster and Nicola Ventress guide students through the new
ACCA Qualification Knowledge Module papers / RELEVANT TO NEW ACCA
QUALIFICATION PAPERS F1, F2, AND F3.
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INTRODUCTION TO THE PAPER

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Formulae provided in
the examination
paper

Regression analysis
∑y b∑x
a = −
n n
n∑xy − ∑x∑y
b =
n∑x2 − (∑x)2
n∑ xy − ∑ x∑y
r = [( )( )]
n∑ x2 − (∑ x)2 n∑y2 − (∑y)2
Economic order quantity
2C D
= 0
C
h
Economic batch quantity
2C D
= 0
 D
C 1− 
h R

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FORMULAE PROVIDED IN THE EXAMINATION PAPER

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