) (

4 73

10

 ) (
6 74

10

11

12

13

 ) (
5 30 77

14

15

16

17

18

19

20

21

22

23

 ) (
7 38 88

24

25

26


X Y

27

28


X Y
29

30


X Y

31

32

33

34

 ) (
10 40 91

35


4P

36

37

38

39

40

41

42

43

44


(a)

45

EXEMPLARS AND COMMENTS

The exemplars below are taken from Questions 4 and 6 of Sample Paper 1B, Questions 5 and 9 of Paper 2A, and Questions 7 and 10 of Paper 2B. Page references for the respective questions and marking guidelines of the exemplars in the Information Booklet are provided. Exemplars are presented by question, from Level 5 (if available) to Level 1. Where certain questions or levels fall short of samples, readers are encouraged to refer to the Chinese version for additional information. PAPER 1 Section B Question 4 (refer to p. 93 of the Booklet for the marking guidelines) This question tests candidates knowledge of the investment products available in Hong Kong and their understanding of the factors affecting personal investment decisions. Sample 1: Level 4

46

Comments Demonstrates good knowledge of the types of financial products available in the Hong Kong securities market. Shows clear understanding of the factors affecting personal investment decisions, particularly in comparison with the decision to keep money in a fixed deposit account. Explanation is well articulated with appropriate use of business terminology.

47

Sample 2:

Level 3

Comments Demonstrates knowledge of the financial products available in Hong Kong and a general understanding of the factors affecting personal investment decisions. Fixed deposits are mistakenly thought to be immune from a declining economy. Communication skill is satisfactory and arguments are in general clearly presented.

48

Sample 3:

Level 2

Comments Demonstrates basic knowledge of the financial products available in Hong Kong but fails to identify them by category as required. Understanding of the factors affecting personal investment decisions is limited and confusion is revealed in relating policy, stability and war with the social environment. Arguments are not clear with occasional imprecise use of business terminology.

49

Sample 4:

Level 1

Comments Demonstrates elementary knowledge of the financial products available in Hong Kong and the factors to be considered in personal investment decisions. Generic answers are put forward with no attempts to illustrate arguments with elaboration.

50

PAPER 1 Section B Question 6 (refer to p. 94 of the Booklet for the marking guidelines) This question tests candidates knowledge and understanding of accounting ratios as well as human resource management. In the first two parts, candidates are expected to synthesise and evaluate the given information for assessing the profitability and liquidity of a business. The last part is an open-ended question in which candidates are expected to propose two relevant measures. Sample 5: Level 5

51

Comments Demonstrates a good analysis of ratios for explaining differences in profitability and commenting on liquidity. The suggested human resource measures are clearly explained and well suited to the case. Able to communicate arguments clearly with good elaboration and appropriate use of business terminology.

52

Sample 6:

Level 4

53

Comments Knowledge and understanding of accounting ratios is satisfactorily demonstrated by making both internal and external comparisons, although misconception is revealed in the interpretation of the companys low net profit ratio. The suggested human resource measures are relevant to the case. Generally able to elaborate on arguments with appropriate use of business terminology.

54

Sample 7:

Level 3

55

Comments Demonstrates adequate knowledge of accounting ratios and has applied it to the given information for profitability and liquidity analysis. The suggested human resource measure reflects a superficial understanding about compensation. Communication ability is fair and answers are mostly explained with some use of business terminology.

56

Sample 8:

Level 2

57

Comments Demonstrates basic knowledge of ratio analysis but comparisons are mostly made with industry averages, rather than between ratios of the same company. The suggested human resource measures do not adequately take into account the context of worker layoff resulting from factory closure. Attempts are made to communicate arguments with use of business terminology.

58

Sample 9:

Level 1

Comments Demonstrates elementary business knowledge and application questions are responded to with generic answers which are out of context. Answers are simplistic with little use of business terminology.

59

PAPER 2A Question 5 (refer to pp. 58-59 of the Booklet for the question and p. 97 for the marking guidelines) This is an application question on financial accounting principles and processes. Candidates have to evaluate the suggested accounting treatment with reference to an accounting concept and to tackle the accounting problem of a partnership by making appropriate entries in the final accounts as well as the partners capital accounts. Sample 10: Level 4

60

61

Comments The conceptual question is well analysed, demonstrating the candidates ability to evaluate information in the context of accounting concepts. Demonstrates good application of the knowledge in accounting for partnerships. Answer is well presented in the proper format with good use of accounting terminology.

62

Sample 11:

Level 3

63

Comments Able to evaluate accounting treatment with reference to a relevant accounting concept, although the objectivity concept has also been inappropriately cited. Knowledge in accounting for partnerships is well applied except for the appropriations of profit. Answer is presented in the proper format with appropriate use of terminology.

64

Sample 12:

Level 2

65

Comments The prudence concept has been cited instead of the more relevant money measurement concept. Demonstrates basic knowledge of accounting for partnerships with respect to the routine items only. Goodwill adjustment is incorrectly calculated. Arguments are put forward with some use of accounting terminology and presentation of accounting entries is acceptable.

66

Sample 13:

Level 1

67

68

Comments An irrelevant concept has been cited and no reference is made to the given scenario. Demonstrates elementary knowledge of accounting entries but profit appropriations have been presented above the net profit line. Improper account titles and terminology are given in the answer.

69

PAPER 2A Question 9 (refer to pp. 65-66 of the Booklet for the question and pp. 104-105 for the marking guidelines) This question is an integrated case testing candidates knowledge and understanding of a range of costing concepts and systems, as well as their application to cost accounting processes. Their ability to integrate the concept of entrepreneurship in the accounting module is also assessed. Sample 14: Level 5

70

71

Comments Demonstrates comprehensive knowledge and understanding of costing concepts in handling the integrated case. Application of knowledge is well illustrated in the identification of relevant cost items and in the preparation of income statement. Evaluation of the two costing methods is well explained. Able to discuss Marys enthusiasm from diverse perspectives, reflecting ability to integrate business knowledge from the compulsory part. Arguments are mostly well elaborated with an extensive use of appropriate accounting terminology.

72

Sample 15:

Level 4

73

Comments Demonstrates good knowledge and understanding of costing concepts in handling the integrated case. Generally able to identify the relevant direct and indirect cost items, and prepares the income statement as required. The breakeven ratio is correctly stated but application to the given data has not been successful. The two costing methods are compared in a routine manner. The open-ended part on entrepreneurship is less satisfactorily handled. Arguments are fairly well explained using generally appropriate terminology.
74

Sample 16:

Level 3

75

76

Comments Demonstrates adequate knowledge and understanding of costing concepts in handling the integrated case. Able to identify the relevant direct and indirect cost items. Processing of accounting information is less satisfactorily handled for preparing the income statement and ascertaining the breakeven sales amount. Some misconception is found in the comparison of the two costing methods. Communication skill is fair.

77

Sample 17:

Level 2

78

Comments Demonstrates basic knowledge and understanding of costing concepts in handling the integrated case. Able to identify the relevant direct and indirect cost items, but can only process minimal accounting information for preparing the income statement. The two costing methods are explained in a generic manner. Attempts to explain concepts and show understanding with basic accounting terminology.

79

Sample 18:

Level 1

Comments The integrated case is minimally attempted. of accounting terminology. Concepts are explained superficially with minimal use

80

PAPER 2B Question 7 (refer to p. 69 of the Booklet for the question and p. 108 for the marking guidelines) This question is a business case which aims to test candidates ability to apply their knowledge and understanding of a range of business management concepts spanning motivation theories, training and development, and capital investment appraisal. Sample 19: Level 5

81

82

83

Comments Demonstrates quite comprehensive knowledge and understanding of motivation theories, the training process and capital investment appraisal. Such knowledge is particularly well applied to the problem of low morale and in advising the approach of offering the training program, although the requirement of part (d) has been misunderstood. Arguments are generally well explained and illustrated with an appropriate use of business terminology.

84

Sample 20:

Level 4

85

86

87

Comments Demonstrates good knowledge and understanding of motivation theories, as well as the ability to explain the benefits and process of training. Relatively weak at identifying the financial and non-financial factors affecting the approach of offering the training program. Generally able to communicate clearly with the use of business terminology, except in the case of the obvious confusion between PV and cash flows.

88

Sample 21:

Level 3

89

90

91

Comments Demonstrates moderate knowledge of motivation theories in explaining the problem of low morale, and in applying the present value concept to the given cash flow pattern. Analysis of the benefits of training and development as well as the non-financial factors affecting the choice of approach tend to be generic. Arguments are in general briefly explained.

92

Sample 22:

Level 2

93

94

Comments Two of the benefits of training, as well as the steps of the training process are correctly identified, but they tend to be minimally illustrated. The present value concept is only correctly applied to the decision logic, but not the computations.

95

Sample 23:

Level 1

96

Comments Demonstrates elementary knowledge and understanding of the business concepts involved. Application to unfamiliar situations such as part (a) is not attempted at all. Viewpoints are generally put forward as statements with little explanation.

97

PAPER 2B Question 10 (refer to p. 71 of the Booklet for the question and p. 111 for the marking guidelines) This is an essay question which aims to test candidates ability to conduct an in-depth analysis of marketing issues, particularly the buying decision-making process of business buyers, and the comparison of the marketing mix strategies between business and consumer buyers. Candidates are expected to elaborate their arguments with reference to the contexts of bathroom and kitchen products. Sample 24: Level 5

98

99

100

Comments Demonstrates quite comprehensive understanding of the marketing concepts involved. Most of the steps in the buying decision-making process are identified and clearly explained. The differences in marketing mix strategies between business and consumer buyers are well illustrated with supporting reasons. Arguments are clearly communicated with a consistent use of appropriate marketing terminology.

101

Sample 25:

Level 4

102

103

Comments Demonstrates a good understanding of the marketing concepts involved. The steps of the buying decision-making process are satisfactorily identified but only briefly described. Generally able to analyse the differences in the marketing mix between business and consumer buyers, although some misconceptions are present. Appropriate marketing terminology has been used in the elaboration.

104

Sample 26:

Level 3

105

106

Comments Demonstrates adequate knowledge in explaining the buying decision-making process, particularly in its application to the unfamiliar situation of purchases of bathroom and kitchen products by property development companies. The differences in promotion and pricing are well illustrated, but not the other two Ps in the marketing mix. Communication ability is fair and answers are explained with some marketing terminology.

107

Sample 27:

Level 2

108

Comments The buying decision-making process is briefly described but is not well applied to the unfamiliar context of bathroom and kitchen products. The four Ps are explained in a generic way and no attempts are made to compare and contrast the marketing mix between business and consumer buyers. Makes little use of marketing terminology.

109

Sample 28:

Level 1

110

111

Comments The decision-making process is mistaken as the buying decision-making process of a business buyer. Common sense speculations are adopted in the comparison of marketing mix strategies and a number of misconceptions are revealed.

112