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PR A C T I C E

&

R E V I S I O N

K I T

BPP Learning Media is the sole ACCA Platinum Approved Learning Partner content for the FIA suite of qualifications. In this, the only FMA/F2 Practice and Revision Kit to be reviewed by the examiner:

We include Do you know? Checklists to test your knowledge and understanding of topics

We provide you with two mock exams including the Pilot paper

We provide the ACCA examiners answers as well as our own to the Pilot paper as an additional revision aid

BPP's i-Pass product also supports this paper and is a vital tool if you are taking the computer based exam.

FOR EXAMS FROM FEBRUARY 2013 TO JANUARY 2014

FMA

PAPER F2

MANAGEMENT ACCOUNTING

Note FIA FMA and ACCA Paper F2 are examined under the same syllabus and study guide.

FMA/F2 MANAGEMENT ACCOUNTING

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First edition May 2011 Second edition November 2012

ISBN 9781 4453 9978 2 (Previous ISBN 9781 4453 7313 3) e-ISBN 9781 4453 9254 7

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 London W12 8AA

www.bpp.com/learningmedia

Your learning materials, published by BPP Learning Media Ltd, are printed on paper obtained from traceable sustainable sources.

All our 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, except where otherwise stated.

BPP Learning Media Ltd 2012

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CONTENTS

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Contents Page

Finding questions Question index ..............................................................................................................................v

Helping you with your revision the ONLY FMA/F2 Practice and Revision Kit to be reviewed by the examiner .............................................................................................. 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 .................................................................................................................................. 121

Formula sheet and tables ............................................................................................................. 179

Exam practice Mock exam 1 (Pilot Paper) Questions......................................................................................................................... 185 Answers........................................................................................................................... 201 ACCA examiners answers.................................................................................................. 207

Mock exam 2 Questions......................................................................................................................... 213 Answers........................................................................................................................... 229

Review form

FMA/F2 MANAGEMENT ACCOUNTING

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QUESTION INDEX

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Question index

Time allocation

Page

Marks Mins Questions Answer

Part A: The nature, source and purpose of management information

1 Accounting for management 20 24 5 121

2 Sources of data 12 14 9 121

3 Cost classification 22 26 13 122

4 Cost behaviour 36 43 14 123

5 Presenting information 8 10 19 125

Part B: Cost accounting methods and systems

6 Accounting for materials 38 46 23 125

7 Accounting for labour 24 29 27 128

8 Accounting for overheads 46 55 33 130

9 Absorption and marginal costing 34 41 39 134

10 Job, batch and service costing 30 36 45 137

11 Process costing 30 36 48 139

12 Process costing, joint products and by-products 14 17 51 141

13 Alternative costing principles 12 14 53 143

Part C: Budgeting

14 Forecasting 62 74 57 143

15 Budgeting 20 24 62 147

16 The budgetary process 48 58 64 149

17 Making budgets work 12 14 69 152

18 Capital expenditure budgeting 8 10 73 153

19 Methods of project appraisal 44 53 73 153

FMA/F2 MANAGEMENT ACCOUNTING

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Time allocation

Page

Marks Mins Questions Answer

Part D: Standard costing

20 Standard costing 14 17 81 157

21 Basic variance analysis 36 43 82 157

22 Further variance analysis 42 50 86 160

Part E: Performance measurement

23 Performance measurement 26 31 93 163

24 Applications of performance measurement 26 31 95 164

25 Cost management 4 5 98 165

Mixed banks

26 Mixed bank 1 40 48 99 165

27 Mixed bank 2 40 48 104 169

28 Mixed bank 3 40 48 108 171

29 Mixed bank 4 30 36 113 174

30 Mixed bank 5 20 24 116 177

Mock exams

Mock exam 1 (Pilot paper) 100 120 185 201

Mock exam 2 100 120 213 229

USING YOUR PRACTICE AND REVISION KIT

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Helping you with your revision the ONLY FMA/F2 Practice and Revision Kit to be reviewed by the examiner!

BPP Learning Media the sole Platinum Approved Learning Partner - content As ACCAs sole Platinum Approved Learning Partner content, BPP Learning Media gives you the unique opportunity to use examiner-reviewed revision materials for exams from February 2013 to January 2014. By incorporating the examiners comments and suggestions regarding syllabus coverage, the BPP Learning Media Practice and 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 Pilot Paper. Mock exam 2 reflects the question styles and syllabus coverage of the exam.

FMA/F2 MANAGEMENT ACCOUNTING

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Using your BPP Practice and Revision Kit

Aim of this Practice and 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