Table Of Content

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