FIA MA1: Management information - Study Text 2015

Reference document content FIA MA1 "Management information - Study Text 2015" to capture the details of: The nature and purpose of management accounting, cost accounting techniques, standard costing,...

FIA MA1 MANAGEMENT INFORMATION INTERACTIVE TEXT FOR EXAMS FROM FEBRUARY 2014 TO AUGUST 2015 2014 2015 MA1 MANAGEMENT INFORMATION BPP Learning Media is the sole ACCA Platinum Approved Learning Partner – content for the FIA qualification In this, the only MA1 study text to be reviewed by the examiner: • We highlight the most important elements in the syllabus and the key skills you will need • We signpost how each chapter links to the syllabus and the study guide • We provide lots of exam focus points demonstrating what the examiner will want you to • We emphasise key points in regular fast forward summaries • We test your knowledge of what you’ve studied in quick quizzes • We examine your understanding in our exam question bank • We reference all the important topics in our full index BPP’s Practice & Revision Kit and i-Pass products also support this paper FOR EXAMS FROM FEBRUARY 2014 TO AUGUST 2015 I N T E R A C T I V E T E X T MA1 MANAGEMENT INFORMATION First edition March 2011 Third edition September 2013 ISBN 9781 4453 7023 Previous ISBN 9781 4453 9962 eISBN 9781 4453 7058 A note about copyright Dear Customer British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library Published by BPP Learning Media Ltd BPP House, Aldine Place 142-144 Uxbridge Road London W12 8AA www.bpp.com/learningmedia Printed in the United Kingdom by Ricoh Ricoh House Ullswater Crescent Coulsdon CR5 2HR Your learning materials, published by BPP Learning Media Ltd, are printed on paper obtained from traceable sustainable sources 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 BPP Learning Media We are grateful to the Association of Chartered Certified Accountants for permission to reproduce past examination questions The suggested solutions in the exam answer bank have been prepared by BPP Learning Media Ltd © BPP Learning Media Ltd 2013 ii What does the little © mean and why does it matter? 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CONTENTS Contents Page Introduction Helping you to pass – the ONLY MA1 study text reviewed by the examiner! v Chapter features vi Studying MA1 vii The Computer Based Examination xiv Tackling Multiple Choice Questions xv Part A Part B Part C Part D Part E 10 The nature and purpose of cost and management accounting Business organisation and accounting Introduction to management information 21 Cost classification and measurement Cost units, cost classification and profit reporting 37 Management responsibility and performance measurement 55 Source documents and coding Source documents and coding 71 Cost accounting Accounting for material and labour costs 99 Overhead costs 125 Job, batch and process costing 143 The spreadsheet system The basics of using spreadsheets 169 Using spreadsheets to present information 199 Exam question bank 235 Exam answer bank 243 Index 247 Review form iii MA1 MANAGEMENT INFORMATION iv INTRODUCTION Helping you to pass – the ONLY MA1 study text reviewed by the examiner! BPP Learning Media – the sole Platinum Approved Learning Partner content As ACCA’s sole Platinum Approved Learning Partner – content, BPP Learning Media gives you the unique opportunity to use examiner-reviewed study materials for exams from February 2014 to August 2015 By incorporating the examiner’s comments and suggestions regarding the depth and breadth of syllabus coverage, the BPP Learning Media Interactive Text provides excellent, ACCA-approved support for your studies The PER alert! To become a Certified Accounting Technician or qualify as an ACCA member, you not only have to pass all your exams but also fulfil a practical experience requirement (PER).To help you to recognise areas of the syllabus that you might be able to apply in the workplace to achieve different performance objectives, we have introduced the ‘PER alert’ feature You will find this feature throughout the Interactive Text to remind you that what you are learning in order to pass your FIA and ACCA exams is equally useful to the fulfilment of the PER requirement Your achievement of the PER should be recorded in your online My Experience record Tackling studying Studying can be a daunting prospect, particularly when you have lots of other commitments The different features of the Text, the purposes of which are explained fully on the Chapter features page, will help you whilst studying and improve your chances of exam success Developing exam awareness Our Texts are completely focused on helping you pass your exam Our advice on Studying MA1 outlines the content of the paper, the recommended approach to studying and any brought forward knowledge you are expected to have Exam focus points are included within the chapters to highlight when and how specific topics might be examined Using the Syllabus and Study Guide You can find the syllabus and Study Guide on page ix of this Interactive Text Testing what you can Testing yourself helps you develop the skills you need to pass the exam and also confirms that you can recall what you have learnt We include Questions – lots of them – both within chapters and in the Exam Question Bank, as well as Quick Quizzes at the end of each chapter to test your knowledge of the chapter content v MA1 MANAGEMENT INFORMATION Chapter features Each chapter contains a number of helpful features to guide you through each topic Tells you what you will be studying in this chapter and the relevant section numbers, together with the ACCA syllabus references Puts the chapter content in the context of the syllabus as a whole Links the chapter content with ACCA guidance Summarises the content of main chapter headings, allowing you to preview and review each section easily EXAMPLE Demonstrates how to apply key knowledge and techniques Definitions of important concepts that can often earn you easy marks in exams Tell you how specific topics may be examined Formulae which have to be learnt This feature gives you a useful indication of syllabus areas that closely relate to performance objectives in your Practical Experience Requirement (PER) Gives you essential practice of techniques covered in the chapter vi Chapter Roundup A full list of the Fast Forwards included in the chapter, providing an easy source of review Quick Quiz A quick test of your knowledge of the main topics in the chapter Exam Question Bank Found at the back of the Interactive Text with more examstyle chapter questions Cross referenced for easy navigation INTRODUCTION Studying MA1 How to Use this Interactive Text Aim of this Interactive Text To provide the knowledge and practice to help you succeed in the examination for Paper MA1 Management Information To pass the examination you need a thorough understanding in all areas covered by the syllabus and teaching guide Recommended approach (a) To pass you need to be able to answer questions on everything specified by the syllabus and teaching guide Read the Text very carefully and not skip any of it (b) Learning is an active process Do all the questions as you work through the Text so you can be sure you really understand what you have read (c) After you have covered the material in the Interactive Text, work through the Exam Question Bank, checking your answers carefully against the Exam Answer Bank (d) Before you take the exam, check that you still remember the material using the following quick revision plan (i) Read through the chapter topic list at the beginning of each chapter Are there any gaps in your knowledge? If so, study the section again (ii) Read and learn the key terms (iii) Look at the exam focus points These show the ways in which topics might be examined (iv) Read the chapter roundups, which are a summary of the fast forwards in each chapter (v) Do the quick quizzes again If you know what you're doing, they shouldn't take long This approach is only a suggestion You or your college may well adapt it to suit your needs Remember this is a practical course (a) Try to relate the material to your experience in the workplace or any other work experience you may have had (b) Try to make as many links as you can to other papers at the Introductory and Intermediate levels For practice and revision use BPP Learning Media’s Practice and Revision Kit, iPass and Passcards What MA1 is about The aim of this syllabus is to build a knowledge and understanding of the principles and techniques used in recording, analysing and reporting costs and revenues for internal management purposes It covers management information, cost recording, costing techniques, source documents and spreadsheets vii MA1 MANAGEMENT INFORMATION Approach to examining the syllabus Paper MA1 is a two-hour paper It can be taken as a written paper or a computer based examination The questions in the computer based examination are objective test questions – multiple choice, number entry and multiple response (See page xiv for frequently asked questions about computer based examinations.) The written examination is structured as follows: 50 compulsory multiple choice questions of two marks each viii Number of marks 100 INTRODUCTION Syllabus and Study guide ix NOTES NOTES NOTES NOTES NOTES NOTES NOTES NOTES NOTES NOTES NOTES NOTES NOTES FIA MA1 – MANAGEMENT INFORMATION (9/13) Review form Address: Name: During the past six months you recall seeing/receiving any of the following? (Tick as many boxes as are relevant) How have you used this Interactive Text? (Tick one box only) Distance learning (book only) Our advertisement in ACCA Student Accountant On a course: college As a tutor Our advertisement in Teach Accounting With 'correspondence' package Other advertisement Other Our brochure Why did you decide to purchase this Interactive Text? (Tick one box only) BPP email Have used BPP Texts in the past Our website www.bpp.com Recommendation by friend/colleague Recommendation by a lecturer at college Saw advertising Other Which (if any) aspects of our advertising you find useful? (Tick as many boxes as are relevant) Prices and publication dates of new editions Which BPP products have you used? Text ACCA email Kit i-Pass Information on Interactive Text content Passcards Facility to order books off-the-page None of the above Your ratings, comments and suggestions would be appreciated on the following areas Very useful Useful Not useful Good Adequate Poor Introductory section (How to use this Interactive Text) Key terms Examples Questions and answers Fast forwards Quick quizzes Exam alerts Exam Question Bank Exam Answer Bank Index Structure and presentation Icons Excellent Overall opinion of this Interactive Text Do you intend to continue using BPP products? Yes No Please note any further comments and suggestions/errors on the reverse of this page The BPP author of this edition can be emailed at benjaminsmith@bpp.com Please return this form to: Barry Walsh, FIA Product Manager, BPP Learning Media, FREEPOST, London, W12 8BR MA1 MANAGEMENT INFORMATION Review form (continued) Please note any further comments and suggestions/errors below ... marks 100 INTRODUCTION Syllabus and Study guide ix MA1 MANAGEMENT INFORMATION x INTRODUCTION xi MA1 MANAGEMENT INFORMATION xii INTRODUCTION xiii MA1 MANAGEMENT INFORMATION The Computer Based Examination... and revenues for internal management purposes It covers management information, cost recording, costing techniques, source documents and spreadsheets vii MA1 MANAGEMENT INFORMATION Approach to...MA1 MANAGEMENT INFORMATION BPP Learning Media is the sole ACCA Platinum Approved Learning Partner – content for the FIA qualification In this, the only MA1 study text to be reviewed