ACCA F2 - Management Accounting - Practice and Revision Kit

314 Pages·2016·4.2 MB·English

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Foundations in Accountancy FMA / ACCA Paper F2
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Foundations in
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MANAGEMENT ACCOUNTING
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Welcome to BPP Learning Media's Practice &Revision Kit for FMA. In this
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FMA/F2 Practice & Revision Kit, which has been reviewed by the ACCA
examination team, we:
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 Include Do you know? Checklists to test your knowledge and understanding
of topics
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 Provide you with two mock exams including the Specimen Exam June 2014
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 Provide the ACCA exam answers to the Specimen Exam June 2014 as an
additional revision aid
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Note
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FIA FMA and ACCA Paper F2 are examined under the same syllabus and study guide.
FOR EXAMS FROM 1 SEPTEMBER 2016 TO 31 AUGUST 2017
FMA/F2 MANAGEMENT ACCOUNTING

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CONTENTS
Contents
Page
Finding questions
Question index..............................................................................................................................v
Helping you with your revision.......................................................................................................vii
Using your BPP Practice and Revision Kit......................................................................................viii
Passing the FMA/F2 exam.............................................................................................................ix
Approach to examining the syllabus................................................................................................ix
The Computer Based Examination...................................................................................................x
Tackling Multiple Choice Questions.................................................................................................xi
Using your BPP products..............................................................................................................xii
Questions and answers
Questions....................................................................................................................................3
Answers..................................................................................................................................149
Formula sheet and tables.............................................................................................................229
Exam practice
Mock exam 1 – Specimen Exam June 2014
 Questions.........................................................................................................................237
 Answers...........................................................................................................................253
 ACCA's exam answers.......................................................................................................261
Mock exam 2
 Questions.........................................................................................................................267
 Answers...........................................................................................................................281

Review form

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FMA/F2 MANAGEMENT ACCOUNTING

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QUESTION INDEX
Question index
Time
Page
allocation
Marks Mins Question Answer
Part A: The nature, source and purpose of
management information
1 Accounting for management 20 24 5 149
2 Sources of data 10 12 9 149
3 Cost classification 26 31 13 150
4 Cost behaviour 36 43 15 151
5 Presenting information 8 10 19 153
Part B: Cost accounting methods and systems
6 Accounting for materials 44 53 23 153
7 Accounting for labour 24 29 28 157
8 Accounting for overheads 48 58 35 159
9 Absorption and marginal costing 36 43 41 163
10 Job, batch and service costing 32 38 47 166
11 Process costing 30 36 50 168
12 Process costing, joint products and by-products 14 17 53 171
13 Alternative costing principles 16 19 55 172
Part C: Budgeting
14 Forecasting 64 77 59 173
15 Budgeting 20 24 65 177
16 The budgetary process 52 62 67 179
17 Making budgets work 12 14 72 182
18 Capital expenditure budgeting 8 10 77 183
19 Methods of project appraisal 48 58 77 183
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FMA/F2 MANAGEMENT ACCOUNTING
Time
Page
allocation
Marks Mins Question Answer
Part D: Standard costing
20 Standard costing 14 17 85 187
21 Basic variance analysis 38 46 86 188
22 Further variance analysis 44 53 91 191
Part E: Performance measurement
23 Performance measurement 52 62 99 195
24 Applications of performance measurement 44 53 104 196
Mixed banks
25 Mixed Bank 1 40 48 109 197
26 Mixed Bank 2 40 48 115 201
27 Mixed Bank 3 40 48 119 203
28 Mixed Bank 4 30 36 124 205
29 Mixed Bank 5 20 24 128 208
Multi-task questions
30 Budgeting 80 96 131 211
31 Standard costing 80 96 138 217
32 Performance measurement 80 96 142 222
Mock exams
Mock Exam 1 (Specimen Exam June 2014) 100 120 237 251
Mock Exam 2 100 120 267 279

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USING YOUR PRACTICE AND REVISION KIT
Helping you with your revision
BPP Learning Media – ACCA Approved Content Provider
As an ACCA Approved Content Provider, BPP Learning Media gives you the opportunity to use revision
materials reviewed by the ACCA examination team. By incorporating the ACCA examination team’s
comments and suggestions regarding the depth and breadth of syllabus coverage, the BPP Learning
Media Practice & Revision Kit provides excellent, ACCA-approved support for your revision.
Selecting questions
We provide signposts to help you plan your revision.
 A full question index listing questions that cover each part of the syllabus, so that you can locate
the questions that provide practice on key topics, and see the different ways in which they might
be tested
Attempting mock exams
There are two mock exams that provide practice at coping with the pressures of the exam day. We
strongly recommend that you attempt them under exam conditions. Mock Exam 1 is the Specimen
Exam June 2014. Mock Exam 2 reflects the question styles and syllabus coverage of the exam.
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FMA/F2 MANAGEMENT ACCOUNTING
Using your BPP Practice & Revision Kit
Aim of this Practice & Revision Kit
To provide the practice to help you succeed in both the paper based and computer based examinations
for Paper FMA/F2 Management Accounting.
To pass the examination you need a thorough understanding in all areas covered by the syllabus and
teaching guide.
Recommended approach
 Make sure you are able to answer questions on everything specified by the syllabus and teaching
guide. You cannot make any assumptions about what questions may come up on your paper. The
examination team aim to discourage 'question spotting'.
 Learning is an active process. Use the DO YOU KNOW? Checklists to test your knowledge and
understanding of the topics covered in FMA/F2 Management Accounting by filling in the blank
spaces. Then check your answers against the DID YOU KNOW? Checklists. Do not attempt any
questions if you are unable to fill in any of the blanks – go back to your BPP Interactive Text and
revise first.
 When you are revising a topic, think about the mistakes that you know that you should avoid by
writing down POSSIBLE PITFALLS at the end of each DO YOU KNOW? Checklist.
 Once you have completed the checklists successfully, you should attempt the questions on that
topic. Each section has a selection of MULTIPLE CHOICE QUESTIONS.
 Each mark carries with it a time allocation of 1.2 minutes (including time for selecting and
reading questions). A 10 mark multi task question should therefore be completed in 12 minutes.
 You should attempt each bank of MCQs to ensure you are familiar with their styles and to
practise your technique. Ensure you read Tackling Multiple Choice Questions on page xi to get
advice on how best to approach them.
 Once you have completed all of the questions in the body of this Practice & Revision Kit, you
should attempt the MOCK EXAMS under examination conditions. Check your answers against our
answers to find out how well you did.
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