@IVE(Tuen Mun) A-Level Principles of Accounts Paper examination review and teaching experiences sharing By Mr Tony Lim--Lecturer Department of Business Services and Management Institute of Vocational Education (Tuen Mun) 22/11/2008

2 (A) Paper 2 syllabus review Costing -principles and methods (eg overheads absorption) Planning and control (eg Standard Costing, Budgeting) Decision making (eg Marginal Costing, NPV ) Financial accounting theory

3 (B) Past Paper Analysis -Costing principles and methods

4 (B) Past Paper Analysis -Planning and control

5 (B) Past Paper Analysis Decision Making

6 (B) Past Paper Analysis --Financial accounting theory, and applications.(20%)

7 (C) Examiners’ comment

8 (D) Students’ comment 1) Difficult to understand the questions, and to apply theory in answering; 2) Difficult to apply data in the calculation questions; 3) Complicated areas: –Standard costing, budgeting, NPV applications, overheads absorption.

9 (E) Teaching experiences sharing (1) Examiners are based on the concept of management perspective to set their questions Students are difficult to understand the questions because they lack business experience and applications. Eg 1 direct Vs indirect costs Eg 2 absorption of overheads based on actual unit of basis

10 (E) Teaching experiences sharing (2) Some simple cases studying are recommended to draw students’ observations of the costing behaviour This can help students to understand: -- variable and fixed costs -- applications of high/ low method to separate any semi-variable costs -- calculation of flexible budgeting.

11 (E) Teaching experiences sharing (3) Some process costing questions were based: Calculation of loss in process Calculation of equivalent units(Year 2008-Q2a)

12 (E) Teaching experiences sharing (4a) Planning and control techniques are essential in management accounting Eg---Budgetary control is designed to control cost centres; ---Preparation of budget PNL accounts and balance sheets are different from cash budgets(eg non-cash expenses are ignored. )

13 (E) Teaching experiences sharing (4b) Eg 2 Standard costing and variance analysis are important in cost units controlling

14 (E) Teaching experiences sharing (5a) Decision Making—long-term. To calculate PV by discounting the future time value of money. PV = 1/ (1 +r )ª

15 (E) Teaching experiences sharing (5b) Decision Making—short-term. Only relevant costs will be considered.

16 (F) Sources of examination questions Past years A-level questions; Professional bodies past questions: ---AAT; CIMA; ACCA

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