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Fma f2 SG Feb14 Aug15
Fma f2 SG Feb14 Aug15
Relational diagram with other papers This is the main document that students and
learning and content providers should use as the
This diagram shows direct and indirect links basis of their studies, instruction and materials
between this examination and other examinations respectively.
which precede or follow it. Some examinations are Examinations will be based on the detail of the
directly underpinned by others. These links are study guide which comprehensively identifies what
shown as solid line arrows. The indirect links are could be assessed within any examination session.
shown as dotted line arrows. The relational diagram The study guide is a precise reflection and
therefore indicates where learners are expected to breakdown of the syllabus. It is divided into sections
have underpinning knowledge and where it would based on the main capabilities identified in the
be useful to review previous learning before syllabus. These sections are divided into subject
undertaking study. areas which relate to the sub-capabilities included
in the detailed syllabus. Subject areas are broken
Overall aim of the syllabus down into sub-headings which describe the detailed
outcomes that could be assessed in examinations.
This explains briefly the overall objective of the These outcomes indicate what exams may require
examination and indicates in the broadest sense the students to demonstrate, and the broad intellectual
capabilities to be developed within the examination. level at which these may need to be demonstrated
(*see intellectual levels below).
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Qualification structure
The qualification structure requires candidates who wish to gain the Diploma in Accounting and Business to pass
the F1/FAB, the F2/FMA and the F3/FFA examinations and successfully complete the Foundations in
Professionalism module.
Diploma in
F1/FAB F2/FMA F3/FFA
+ + + FiP* = Accounting
and
Business
* Foundations in Professionalism
Syllabus structure
The Foundations in Accountancy suite of
qualifications is designed so that a student can
progress through three discrete levels; Introductory
Certificate level, Intermediate Certificate level and
the Diploma level. Students are recommended to
enter Foundations in Accountancy at the level which
is most appropriate to their needs and abilities and
to take examinations in order, but this is not a
requirement.
P3 P5 ACCA
F5
FIA FMA F2
MA2
MA1
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Syllabus controlling business costs. The syllabus concludes
with an introduction to measuring and monitoring
the performance of an organisation
AIM
The syllabus starts by introducing the nature, the D Compare actual costs with standard costs and
source and purpose of cost accounting and the analyse any variances
costing techniques used in business which are
essential for any management accountant . E Explain and apply performance measurements
and monitor business performance.
The syllabus then looks at the preparation and use
of budgeting and standard costing and variance
analysis as essential tools for planning and
Budgeting
(C)
Cost accounting
techniques
Standard costing (B)
(D)
Performance
measurement
(E)
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DETAILED SYLLABUS E Performance measurement
4 Presenting information
2. Statistical techniques
3. Budget preparation
4. Flexible budgets
D Standard costing
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Study Guide (Note: Derivation of random samples will not
be examined)
A THE NATURE, SOURCE AND PURPOSE OF
MANAGEMENT INFORMATION 3. Cost classification
g) Explain the limitations of management f) Explain and illustrate the use of codes in
information in providing guidance for categorising transaction.[k]
managerial decision-making.[k]
g) Describe and illustrate, graphically, different
2. Sources of data types of cost behaviour.[s]
a) Describe sources of information from within h) Use high/low analysis to separate the fixed and
and outside the organisation (including variable elements of total costs including
government statistics, financial press, situations involving semi variable and stepped
professional or trade associations, quotations fixed costs and changes in the variable cost per
and price list.[k] unit.[s]
b) Explain the uses and limitations of published i) Explain the structure of linear functions and
information/data (including information from equations.[s]
the internet) .[k]
j) Explain and illustrate the concept of cost
objects, cost units and cost centres.[s].
c) Describe the impact of general economic
environment on costs/revenue.[k] k) Distinguish between cost, profit, investment and
revenue centres.[k].
d) Explain sampling techniques (random,
systematic, stratified, multistage, cluster and l) Describe the differing needs for information of
quota) .[k] cost, profit, investment and revenue centre
managers.[k]
e) choose an appropriate sampling method in a
specific situation.[s]
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4. Presenting information (iv) Describe different remuneration methods:
time-based systems, piecework systems
a) Prepare written reports representing and individual and group incentive
management information in suitable formats schemes.[k]
according to purpose.[s] (v) Calculate the level, and analyse the costs
and causes of labour turnover.[s]
(vi) Explain and calculate labour efficiency,
b) Present information using tables, charts and
capacity and production volume ratios.[s]
graphs (bar charts, line graphs, pie charts
(vii) Interpret the entries in the labour
and scatter graphs) .[s].
account.[s]
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(i) Describe the characteristics of job and 4 Alternative cost accounting
batch costing.[k]
(ii) Describe the situations where the use of job a) Explain activity based costing (ABC), target
or batch costing would be appropriate.[k] costing, life cycle costing and total quality
(iii) Prepare cost records and accounts in job management (TQM) as alternative cost
and batch costing situations. [s] management techniques.[k]
(iv) Establish job and batch costs from given
information.[s] b) Differentiate ABC, Target costing and life cycle
costing from the traditional costing techniques
b) Process costing (note: calculations are not required) .[k]
(i) Describe the characteristics of process
costing.[k] C BUDGETING
(ii) Describe the situations where the use of
process costing would be appropriate.[s] 1. Nature and purpose of budgeting
(iii) Explain the concepts of normal and
abnormal losses and abnormal gains.[k] a) Explain why organisations use budgeting.[k]
(iv) Calculate the cost per unit of process
outputs.[s] b) Describe the planning and control cycle in an
(v) Prepare process accounts involving normal organisation.[k]
and abnormal losses and abnormal gains.[s]
(vi) Calculate and explain the concept of c) Explain the administrative procedures used in
equivalent units.[s] the budgeting process.[k]
(vii) Apportion process costs between work
remaining in process and transfers out of a d) Describe the stages in the budgeting
process using the weighted average and process ( including sources of relevant data,
FIFO methods.[s] planning and agreeing draft budgets and
(viii)Prepare process accounts in situations purpose of forecasts and how they link to
where work remains incomplete.[s] budgeting).[k]
(ix) Prepare process accounts where losses and
gains are identified at different stages of the 2. Statistical techniques
process.[s]
(x) Distinguish between by-products and joint
a) Explain the advantages and disadvantages of
products.[k]
(xi) Value by-products and joint products at the using high low method to estimate the fixed
point of separation.[s] and variable element of costing.[k].
(xii) Prepare process accounts in situations
where by-products and/or joint products b) Construct scatter diagrams and lines of best
occur. [s] fit.[s]
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e) Adjust historical and forecast data for price e) Prepare master budgets (statement of profit or
movements.[s] loss and statement of financial position) [s]
f) Explain the advantages and disadvantages of f) Explain and illustrate ‘what if’ analysis and
scenario planning [s]
linear regression analysis.[k]
4. Flexible budgets
g) Describe the product life cycle and explain its
importance in forecasting.[k]
a) Explain the importance of flexible budgets in
control[k]
h) Explain the principles of time series analysis
(cyclical, trend, seasonal variation and
b) Explain the disadvantages of fixed budgets in
random elements) .[k]
control[k]
k) Use trend and seasonal variation (additive 5. Capital budgeting and discounted cash flows
and multiplicative) to make budget
forecasts.[s] a) Discuss the importance of capital investment
planning and control[k]
l) Explain the advantages and disadvantages of
time series analysis[k] b) Define and distinguish between capital and
revenue expenditure[k]
m) Explain the purpose of index numbers [k]
c) Outline the issues to consider and the steps
n) Calculate simple index numbers for one or involved in the preparation of a capital
more variables.[s] expenditure budget[k]
d) Explain and illustrate the difference between
o) Explain the role and features of a computer simple and compound interest, and between
spreadsheet system.[k] nominal and effective interest rates[s]
e) Explain and illustrate compounding and
p) Identify applications for computer discounting[s]
spreadsheets and their use in cost and
f) Explain the distinction between cash flow and
management accounting.[s]
profit and the relevance of cash flow to capital
investment appraisal[k]
3. Budget preparation
g) Identify and evaluate relevant cash flows for
a) Explain the importance of principal budget individual investment decisions.[s]
factor in constructing the budget’.[k]
h) Explain and illustrate the net present value
b) Prepare sales budgets[s] (NPV) and internal rate of return (IRR)
methods of discounted cash flow[s]
c) Prepare functional budgets (production, raw
materials usage and purchases, labour, i) Calculate present value using annuity and
variable and fixed overheads) [s] perpetuity formulae[s]
j) Calculate NPV, IRR and payback (discounted
d) Prepare cash budgets[s] and non-discounted) [s]
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k) Interpret the results of NPV, IRR and payback c) Establish the standard cost per unit under
calculations of investment viability[s] absorption and marginal costing[s]
b) Identify factors in a budgetary planning and i) Calculate actual or standard figures where the
control system that influence motivation[s] variances are given.[k]
a) Explain the purpose and principles b) Discuss the purpose of strategic and
of standard costing. [k] operational and tactical objectives and their
role in performance measurement[k]
b) Explain and illustrate the difference between
standard, marginal and absorption costing[k]
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c) Discuss the impact of economic and market (ii) explain the advantages and limitations of
conditions on performance measurement[k] return on investment and residual income[k]
g) Quality of service
d) Explain the impact of government regulation on
performance measurement[k] (i) distinguish performance measurement
issues in service and manufacturing
2 Performance measurement - application industries[k]
(ii) describe performance measures appropriate
a) Discuss and calculate measures of financial for service industries[k]
performance (profitability, liquidity, activity
and gearing) and non financial measures[s]
3. Cost reductions and value enhancement
b) Perspectives of the balanced scorecard
(i) discuss the advantages and limitations of a) Compare cost control and cost reduction[k]
the balanced scorecard[k]
(ii) describe performance indicators for b) Describe and evaluate cost reduction
financial success, customer satisfaction, methods[s]
process efficiency and growth[k]
(iii) discuss critical success factors and key c) Describe and evaluate value analysis[s]
performance indicators and their link to
objectives and mission statements[k] 4 Monitoring performance and reporting
(iv) establish critical success factors and key
performance indicators in a specific a) Discuss the importance of non-financial
situation[s] performance measures[k]
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SUMMARY OF CHANGES TO F2/FMA
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