Acca Questions Lrp
QUESTIONS
KAPLAN PUBLISHING
1
PAPER F5 : PERFORMANCE MANAGEMENT
SPECIALIST COST AND MANAGEMENT ACCOUNTING TECHNIQUES
MANAGEMENT ACCOUNTING
‘In the broadest sense, all accounting is management accounting. All financial and cost information generated by accountants is of some interest to management. But, in practice, where management accounting differs from financial accounting ...’ (from An Insight into Management Accounting by John Sizer) Required: (a) (b) Give a brief definition of management accounting. (6 marks) Give a discussion of the major differences between management and financial accounting. (20 marks) (Total: 25 marks)
2
KAPLAN PUBLISHING
LECTURER RESOURCE PACK – QUESTIONS
A COLLEGE
A college offers a range of degree courses. The college organisation structure consists of three faculties, each with a number of teaching departments. In addition, there is an administrative/management function and a central services function. The following cost information is available for the year ended 30 June 20X7: (1) Occupancy costs Total £1,500,000. Such costs are apportioned on the basis of area used which is: Square feet Faculties 7,500 Teaching departments 20,000 Administration/management 7,000 Central services 3,000 (2) Administration/management costs Direct costs: £1,775,000. Indirect costs: an apportionment of occupancy costs. Direct and indirect costs are charged to degree courses on a percentage basis. (3) Faculty costs Direct costs: £700,000. Indirect costs: an apportionment of occupancy costs and central service costs. Direct and indirect costs are charged to teaching departments. (4) Teaching departments Direct costs: £5,525,000. Indirect costs: an apportionment of occupancy costs and central service costs plus all faculty costs. Direct and indirect costs are charged to degree courses on a percentage basis. (5) Central services Direct costs: £1,000,000. Indirect costs: an apportionment of occupancy costs. Direct and indirect
KAPLAN PUBLISHING
1
PAPER F5 : PERFORMANCE MANAGEMENT
SPECIALIST COST AND MANAGEMENT ACCOUNTING TECHNIQUES
MANAGEMENT ACCOUNTING
‘In the broadest sense, all accounting is management accounting. All financial and cost information generated by accountants is of some interest to management. But, in practice, where management accounting differs from financial accounting ...’ (from An Insight into Management Accounting by John Sizer) Required: (a) (b) Give a brief definition of management accounting. (6 marks) Give a discussion of the major differences between management and financial accounting. (20 marks) (Total: 25 marks)
2
KAPLAN PUBLISHING
LECTURER RESOURCE PACK – QUESTIONS
A COLLEGE
A college offers a range of degree courses. The college organisation structure consists of three faculties, each with a number of teaching departments. In addition, there is an administrative/management function and a central services function. The following cost information is available for the year ended 30 June 20X7: (1) Occupancy costs Total £1,500,000. Such costs are apportioned on the basis of area used which is: Square feet Faculties 7,500 Teaching departments 20,000 Administration/management 7,000 Central services 3,000 (2) Administration/management costs Direct costs: £1,775,000. Indirect costs: an apportionment of occupancy costs. Direct and indirect costs are charged to degree courses on a percentage basis. (3) Faculty costs Direct costs: £700,000. Indirect costs: an apportionment of occupancy costs and central service costs. Direct and indirect costs are charged to teaching departments. (4) Teaching departments Direct costs: £5,525,000. Indirect costs: an apportionment of occupancy costs and central service costs plus all faculty costs. Direct and indirect costs are charged to degree courses on a percentage basis. (5) Central services Direct costs: £1,000,000. Indirect costs: an apportionment of occupancy costs. Direct and indirect