Tài liệu ACCA mới nhất môn F2,textbook

Management Accounting
Paper F2
Integrated Course Notes
ACF2CN07(D)




(i)
BPP provides revision courses, question days,
mock days and specific material to assist you in
this important phase of your studies.
F2 Management Accounting
(Computer Based Exam)
Study Programme
Page
Introduction to the paper and the course (ii)
1 Information for management 1.1
2 Cost classification 2.1
3 Cost behaviour 3.1
4 Expected values and correlation and regression 4.1
End of Day 1 – refer to Course Companion for Home Study 
5 Spreadsheets 5.1
6 Materials costs 6.1
7 Labour costs 7.1
8 Overheads and absorption costing 8.1
End of Day 2 – refer to Course Companion for Home Study 
9 Absorption costing and marginal costing 9.1
10 Process costing 10.1

11 Process costing, joint products and by-products 11.1
End of Day 3 – refer to Course Companion for Home Study 
12 Job and service costing 12.1
13 Budgeting 13.1
14 Standard costing 14.1
End of Day 4 – refer to Course Companion for Home Study 
15 Basic variances 15.1
16 Further variances 16.1
17 CVP analysis 17.1
End of Day 5 – refer to Course Companion for Home Study 
18 Relevant costs 18.1
19 Linear programming 19.1
End of Day 6 – refer to Course Companion for Home Study 
20 Answers to Lecture Examples 20.1
21 Appendix A: Pilot Paper questions 21.1
22 Appendix B: Formulae given in the exam 22.1
Don’t forget to plan your revision phase!
• Revision of syllabus
• Testing of knowledge
• Question practice
• Exam technique practice
INTRODUCTION
(ii)
Introduction to Paper F2
Management Accounting

Overall aim of the syllabus
The overall aim of the paper is to develop knowledge and understanding of the application of management
accounting techniques to support the management process of planning, control and decision making.
The syllabus

The broad syllabus headings are:
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
Main capabilities
On successful completion of this paper, candidates should be able to:
• Explain the nature and purpose of Cost and Management Accounting
• Describe costs by classification, behaviour and purpose
• Apply essential business mathematics and use computer spreadsheets
• Explain and co-ordinate budgets and standard costing for planning feedback and control
• Use Management Accounting techniques to make and support decision-making
Links with other papers









This diagram shows where direct (solid line arrows) and indirect (dashed line arrows) links exist between this
paper and other papers that may follow it.
The Management Accounting syllabus assumes knowledge acquired in paper F1 Accountants in Business, and
develops and applies this further and in greater depth. Paper F5 Performance Management assumes knowledge
acquired at this level.
APM (P5)

Advanced Performance Mana
gement
PM (F5)
Performance Mana
gement
AB (F1)
Accountants in Business
MA (F2)
Mana
gement Accounting
FM (F9)
Financial Mana
gement
INTRODUCTION
(iii)
Assessment methods and format of the exam
Examiner: David Forster
Students have the option to take either a paper-based or a computer-based exam.
Both exams contain 100% compulsory questions worth either 1 or 2 marks, making up a total of 90 marks to be
completed in two hours as follows:
– 40 two-mark questions
– 10 one-mark questions
Questions will assess all parts of the syllabus and will include both computational and non-computational
elements.

INTRODUCTION
(iv)
Course Aims
Achieving ACCA's Study Guide Outcomes
A The nature and purpose of cost and management accounting

A1 Accounting for management Chapter 1
A2 Cost and management accounting versus financial accounting Chapter 1

B Cost classification, behaviour and purpose


B1 Production and non-production costs Chapter 2
B2 Direct and indirect costs Chapter 2
B3 Fixed and variable costs Chapter 3

C Business mathematics and computer spreadsheets


C1 Dealing with uncertainty Chapter 4
C2 Statistics for business Chapter 4
C3 Use of computer spreadsheets Chapter 5

D Cost accounting techniques


D1 Accounting for materials Chapter 6
D2 Accounting for labour Chapter 7
D3 Accounting for overheads Chapter 8
D4 Marginal and absorption costing Chapter 9
D5 Job and batch costing Chapter 12
D6 Process costing Chapters 10, 11
D7 Service/operation costing Chapter 12

E Budgeting and standard costing


E1 Nature and purpose of budgeting Chapter 13
E2 Functional budgets Chapter 13
E3 Flexible budgets and standard costing Chapters 13, 14
E4 Basic variance analysis under absorption and marginal costing Chapter 15
E5 Reconciliation of budgeted profit to actual profit Chapter 16
INTRODUCTION
(v)
F Short-term decision making techniques


F1 Cost-volume-profit analysis Chapter 17
F2 Relevant costing Chapter 18
F3 Limiting factors Chapter 19

INTRODUCTION
(vi)
Classroom tuition and Home study
Your studies for BPP consist of two elements, classroom tuition and home study.
Classroom tuition
In class we aim to cover the key areas of the syllabus. To ensure examination success you will need to spend
private study time reinforcing your classroom course with question practice and reviewing areas of the Course
Notes and Study Text.
Home study
To support you with your private study BPP provides you with a Course Companion which helps you to work at
home and aims to ensure your private study time is effectively used. The Course Companion includes a Home
Study section which breaks down your home study by days, one to be covered at the end of each day of the
course. You will find clear guidance as to the time to spend on various activities and their importance.

You are also provided with progress tests and two course exams which should be submitted for marking as they
become due.
These may include questions on topics covered in class and home study.
BPP Learn Online
Come and visit the BPP Learn Online free at www.bpp.com/acca/learnonline for exam tips, FAQs and syllabus
health check.
ACCA Forum
We have thriving ACCA bulletin boards at www.bpp.com/accaforum. Register and discuss your studies with
tutors and students.
Helpline
If you have any queries during your private study simply contact your class tutor on the telephone number or
e-mail address that they will supply. Alternatively, call +44 (0)20 8740 2222 (or your local training centre if
outside the London area) and ask for a tutor for this paper to speak to you or to call you back within 24 hours.
Feedback
The success of BPP’s courses has been built on what you, the students tell us. At the end of the course for each
subject, you will be given a feedback form to complete and return.
If you have any issues or ideas before you are given the form to complete, please raise them with the course
tutor or relevant head of centre.
If this is not possible, please email

INTRODUCTION
(vii)
Key to icons

Question practice from the Study Text
This is a question we recommend you attempt for home study.

Real world examples
These can be found in the Course Companion.

Section reference in the Study Text
Further reading is needed on this area to consolidate your knowledge.

Formula to learn


Formula given in exam


INTRODUCTION
(viii)


1.1

Syllabus Guide Detailed Outcomes
Having studied this chapter you will be able to:
• Distinguish between data and information.
• Identify and explain the attributes of good information.
• Outline the managerial processes of planning, decision making and control.
• Explain the difference between strategic, tactical and operational planning.
• Describe the purpose and role of cost and management accounting within an organisation's management
information system.
• Compare and contrast financial accounting with cost and management accounting.
Exam Context
The contents of this chapter are mainly to serve as an introduction to the ACCA's Management Accounting paper.
Although this chapter is an introductory chapter it is still highly examinable. You should expect questions on every
chapter including this one.
Qualification Context
Chapter 1 provides an introduction to the management accounting environment and provides a context for the rest of

this syllabus. This is examined again at paper F9 (Financial Management) where the relationship between financial
management and management accounts is discussed.


Information for
management
1: INFORMATION FOR MANAGEMENT
1.2
Overview



Information for
management
Role of management
accounting function
Data and information Information for planning
Information for control
Information for decision
making
Qualities
Comparison with financial
accounting
1: INFORMATION FOR MANAGEMENT
1.3
1 Management accounting
Purpose
1.1 The purpose of management accounting is to assist management in running their business
to achieve an overall objective.
1.2 What could a business have as its objective?

1.3 The assumption that will usually be made in your studies is that companies wish to
maximise the wealth of their shareholders.
Usually this will be achieved by maximising profit.
2 Data and information
2.1 Data is the raw material for data processing.
2.2 Information is data that has been processed in some way to make it meaningful to the
person who receives it.
Lecture example 1
Preparation question

What are the general qualities of good information?

Solution











3 Planning, control and decision making
3.1 Information for management accounting is likely to be used for planning, control and
decision making.
3.2 Planning → establishing objectives
→ selecting appropriate strategies to achieve those objectives
1: INFORMATION FOR MANAGEMENT

1.4
Lecture example 2
Preparation question

The objectives of a firm may be:
Profit making firm Non profit making firm
• •
• •
• •
• •


3.3 Long-term strategic planning (corporate plan) involves determining an organisation's long-
term goals and then selecting appropriate strategies to attain those objectives.
3.4 Shorter term planning involves developing tactical and operational plans in order to
achieve the goals of the corporate plan.
3.5 Control → There are two key mechanisms within the control process.
(1) Actual performance is compared with planned performance of the
organisation as set out in the detailed operational plan and
adjusted in response.
(2) The corporate plan is reviewed to reflect significant new
information.
3.6
Decision Making
→ Managers at all levels within an organisation make
decisions.
It is the role of management accountants to provide information so
that management at whatever level can reach an informed
decision.
4 Role of management accountant

Main areas
Management accounting can be broken down into five main areas.
4.1 Costing
What is the cost of goods or services?
We need to know this to calculate the profit that a unit will generate, to help set prices and to
value inventory in the balance sheet.
1: INFORMATION FOR MANAGEMENT
1.5
4.2 Decision-making
There are many decisions managers may have to make such as:
– What should we produce?
– How should we finance the business?
– Is a project worthwhile?
4.3 Planning
Define objectives; assessing future costs and revenues to set up a budget.
Planning is essential in assessing the purchasing/production requirements of the business.
4.4 Control
Once plans have been made, they must be reviewed to ensure the company is following
them and any identified inefficiencies must be addressed.
4.5 Performance evaluation
The performance of divisions and employees can be assessed by comparing their
performance against budgets or divisional or individual targets.
Lecture example 3
Preparation question

What information may the managers of a business need?

Solution

External Information Internal Information














1: INFORMATION FOR MANAGEMENT
1.6
5 Management accounting and financial accounting
Lecture example 4
Preparation question

Complete the following table to compare financial and management accounting:
Financial accounting Management accounting
Legal requirement
Users
Level of precision
Rules
Reporting

Scope
Frequency
Format


5.1 Thus it is useful to think of the two as
Financial Accounting: recording and reporting historical data
Management Accounting: deciding where the company wants to go and ensuring it gets
there
5.2 It is important to remember that as management accounting is forward looking, it relies
heavily on guesses and approximations, to deal with future uncertainties. We therefore have
to use reasonable approximations in all our calculations.
6 Chapter summary 1
6.1 Data is raw material for data processing.
6.2 Information is data that has been processed in such a way as to be meaningful to the
person who receives it.
6.3 Good information should be relevant, complete, accurate, clear, timely, appropriately
communicated and the cost of it should be less than the benefit.
6.4 Information is used in a business for planning, control and decision making.
6.5 Financial accounting systems ensure that the assets and liabilities of a business are
properly accounted for. Management accounting systems provide information specifically for
managers.

1.7



Chapter 1: Questions
1: QUESTIONS
1.8

1.1 Information is data that has been manipulated into a report for a specific purpose.
True
False (1 mark)
1.2 Management accountants may provide information for management on which of the following:
(i) Cost of goods and services
(ii) Actual costs compared to expected costs
(iii) Expected profits and production plans
A (i) only
B (i) and (iii) only
C All of the above (1 marks)
1.3 Management accounts must be reported monthly.
True
False (2 marks)
1.4 (1) Management accounting will report information on the past period in order to compare it to the
original budget.
(2) Financial accounting will plan for the future periods.
A One true one false
B Both true
C Both false (1 mark)

1.9



Chapter 1: Answers
1: ANSWERS
1.10
1.1 True
1.2 C
1.3 False

1.4 A

END OF CHAPTER

2.1

Syllabus Guide Detailed Outcomes
Having studied this chapter you will be able to:
• Distinguish between cost, profit, investment and revenue centres.
• Describe the differing needs for information of cost, profit, investment and revenue centre managers.
• Explain and illustrate production and non-production costs.
• Describe the different elements of production cost – materials, labour and overheads.
• Describe the different elements of non-production cost – administrative, selling, distribution and finance.
• Explain the importance of the distinction between production and non-production costs when valuing output and
inventories.
• Distinguish between direct and indirect costs in manufacturing and non-manufacturing organisations.
• Identify examples of direct and indirect costs in manufacturing and non-manufacturing organisations.
• Explain and illustrate the concepts of cost objects, cost units and cost centres.
Exam Context
Cost classification is one of the key areas of the syllabus and as well as providing you with key terminology for many of
the following chapters, is also very examinable.
Qualification Context
This chapter includes terminology that will be used throughout the Fundamentals level of the ACCA qualification and on
to the Professional level of your studies.
Business Context
Grouping costs together is essential for a business to be able to analyse costs, budget and plan effectively.


Cost classification
2: COST CLASSIFICATION

2.2
Overview



Cost classification
Classification by function
Production costs Non production costs
Cost object
Cost unit
Cost centre
Materials
Labour
Overheads
Direct cost Indirect cost
Further
classification by
nature
Materials
Labour
Overheads
2: COST CLASSIFICATION
2.3
1 Introduction to cost classification
1.1 Cost classification is the arrangement of cost items into logical groups for example by their
function (administration, production etc) or by their nature (materials, wages etc).
The eventual aim of costing is to determine the cost of producing a product/service.
2 Production and non production costs
Classification by function
2.1 A company may first arrange cost items into groups by function. At the highest level there

could be groups of production costs and groups of non production costs.
Pool of total costs

Production costs Non production costs
Costs associated with the All other costs incurred
production of goods and in the business
services, from the supply of
raw materials to the
warehousing of finished goods
Lecture example 1
Preparation question

Give some examples of production and non production costs.

Solution




Production costs

Non production costs

2: COST CLASSIFICATION
2.4
2.2 Production costs can then the broken down further by their nature.
Production costs

Materials Labour Overheads
Cost of materials that Cost of the workforce Cost of any
are used in making the used in making overheads required to
product or service the product support the
production process
2.3 Non production costs can also be broken down further by their nature to aid analysis.
Non production costs

Administration Selling Distribution Finance
All other costs All costs incurred All costs incurred All costs incurred
incurred in in promoting and in making the to finance the
managing the retaining packed product business
organisation customers ready for despatch
and delivery to the
customer
Lecture example 2
Preparation question

Give examples of non-production costs under each of the four headings above.

Solution

Administration Selling Distribution Finance












2: COST CLASSIFICATION
2.5
Distinction between production and non production costs.
2.4 Remember the eventual aim of costing is to determine the cost of producing a product or
service.
This information is important to management for many reasons, the three most important
being:
(1) Profitability analysis
(2) Selling price determination
(3) Inventory valuation purposes.
For the purpose of the syllabus we will focus on the group of production costs identified in
the previous section.
3 Direct and indirect costs
3.1 Production costs can be split into direct costs and indirect costs of production.
Definition
3.2 A direct cost is a cost that can be traced in full to the product, service or department that is

being costed.
Total direct costs = Prime costs.
Definition
3.3 Indirect production costs are those costs which are incurred in the course of making a
product/service but which cannot be identified with a particular cost unit.
Indirect production costs are often referred to as production overheads.
Lecture example 3
Preparation question

Identify and group the costs involved in the production of a CD.

Solution



Total production costs