UNIVERSITY COLLEGE DUBLIN
Bachelor of Science (Sri Lanka)
Financial & Management Accounting (ACC2002L)
STUDY GUIDE
BSc 20 PT / Sri Lanka
January 2017
1
Author: Dr. Ming Yen Tan (Jan 2017)
This manual was prepared for University College Dublin as a comprehensive support for
students completing the above mentioned Degree programme.
© This publication may not be reproduced, in whole or in part without permission from
University College Dublin.
Module Co-ordinator:
Dr. Ming Yen Tan
Mobile:
86-13509692701
Office:
86-755-82680031
Email:
mingyentan@gmail.com
2
TABLE OF CONTENTS
PAGE
WELCOME MESSAGE
4
1. INTRODUCTION
5
a. Background details
b. Module aims
c. Programme goals
2. MODULE OUTLINE
8
a. Module learning outcomes
b. Themes and topics
c. Learning materials
3. MODULE DELIVERY SCHEDULE
11
a. Session arrangements
b. Student engagement
c. Office hours arrangements
4. ASSESSMENT DETAILS
13
a. Assignments
b. Module assessment components
i. Assignment 1 – Individual assignment
ii. Assignment 2 – Group project
iii. Assignment 3 – Examination
5. GRADING
19
a. University grading policy
b. Grade descriptors for assessment components
6. CONCLUDING COMMENTS
23
APPENDICES
24
1.
2.
3.
4.
Student code of practice – Group Work
Team agreement form
Guidelines for submission
Past year examination paper – Feb 2016
3
WELCOME MESSAGE
As co-ordinator of the Financial & Management Accounting module, I wish to welcome you to
the module.
To operate effectively within the Global Business World, an understanding of the theory and
practice of Accounting is essential. This module is designed to deepen your interest and
expertise in the area of Accounting and the Study Guide is designed to support your
learning.
While much of the focus is on knowledge acquisition, attention is also given to enhancing
and developing your professional and personal skills and competencies. To successfully
complete this module, several learning activities (individual and group) are to be completed
(prior to, and during the bloc sessions) which should provide enjoyment and fun, and also
facilitate the attainment of the module learning outcomes.
Should you require clarification on any matter pertaining to the module, please do not
hesitate to contact me.
Dr. Ming Yen Tan
Module coordinator
4
PART 1: INTRODUCTION
This Study Guide is designed to provide you with details of this module, the learning
outcomes, delivery and assessment arrangements. The Study Guide consists of 6 parts.
Part 1 gives background details to the subject area are provided and the broad aims of the
module are set out.
Part 2 consists of the module outline. In this part the (a) module learning outcomes, (b) the
themes and topics to be explored are explained along with the (c) learning supports to be
used.
Part 3 gives details of the module delivery arrangements. It sets out the session
arrangements and the expectations in relation to your prior preparation and student
engagement.
Part 4 provides details of the assessment techniques used in this module explaining the
assessment components, their rationale.
Part 5 explains the UCD grading policy and grade descriptors drawing on the university
document are given for each assessment component (i) Assignment 1 and (ii) Examination
(closed book).
Part 6 presents the concluding comments.
a. Background Details
The aim of this module is to give students an introduction to the financial accounting
environment in which organisations operate, including the preparation of financial statements
and financial statement analysis. Students will understand/appreciate the information needs
of managers and the strategic role of management accounting information
b. Module Aims
On completing this module students will be expected to be able to explain the factors which
impact on the financial accounting environment, the purpose of financial accounting describe
the primary uses and basic concepts of financial accounting information and undertake basic
analysis of the performance and financial position of an organisation from its financial
statements. Understand/appreciate the information needs of managers and the strategic role
of management accounting information; Identify and use cost information for product/service
costing, control and decision-making purposes; Apply decision-making concepts to a variety
of business situations.
5
Programme Goals
Bachelor of Science (BSc) Sri Lanka
PROGRAMME
GOAL
LEARNING OUTCOME
MODULE TITLE:
Management
Specific Knowledge
Explain current theoretical underpinnings of Assignment 1 &
Assignment 2 –
business and organization management.
short question
Financial &
Management
Accounting
Our graduates will be
current
in
management theory
and practice.
Examination –
Short Essay
Question
Apply business models and theory to identify Examination –
and resolve problems in functional and across Short Essay
Question
functional areas.
Demonstrate knowledge of and the usefulness Assignment 2
of quantitative techniques and controls in the short question
business environment.
Business
Communication
Our graduates will be
able to design and
deliver
a
short
presentation (oral or
written) on a current
business topic.
–
Prepare short business presentations (written
and oral) on a current topic to key
stakeholders.
Research and analyze specific business case Assignment 2
studies / problems / topics and write a concise short question
report detailing the findings and recommended
actions.
–
Locate information sources to facilitate the
completion of research projects and the
technologies to analyze and interpret the data
collected.
Personal
Engage in module-related team activities
Development
& within and outside class.
Reflective Learning
Explain the essence of organization behaviour
Our graduates will be pertinent to business managers and how they
able to
reflect on may apply in the workplace environment.
their learning with a
view to enhancing
personal
and
Assignment 2
short question
–
Examination –
Short Essay
Question
6
professional
pathways.
career
Global, Multicultural Identify the main factors and variables that
and
Diversity influence multinational entities’ business
Perspectives
operations,
planning
and
competitive
positioning.
Our graduates will
understand
the
impact of culture and
social developments Recognize ethical and social responsibility
on
business issues in the business environment and know
how to apply a process of ethical inquiry.
management
decisions.
Assignment 2 –
short question
Examination –
Short Essay
Question
Examine ethical and legal implications of Examination –
managerial decisions and their effect on Short Essay
Question
organizational stakeholders.
Identify business opportunities/problems and Assignment 2 –
develop alternative solutions, taking account of short question
Our graduates will be possible
consequences
(intended
or
Examination –
able
to
critically unintended).
Short Essay
appraise
business
Question
developments
and
advise on strategic
Evaluate qualitative and quantitative data from
business projects.
multiple perspectives paying attention to
sourcing, biases and logic.
Strategic Thinking
Analyze developments in key business sectors Examination –
and comment critically on a firm operating in Short Essay
Question
the sector.
7
PART 2: MODULE OUTLINE
Module Title:
Financial & Management Accounting
Module Code:
ACC2002L
No. of ECTS:
10
Type
Specified Learning Activities
Lectures
Autonomous Student Learning
Total
Hours
85
30
125
240
a. Module Learning Outcomes
On completing this module, students will be expected to be able to:

Have an understanding of the financial accounting environment, the purpose of
financial accounting and the primary uses and basic concepts of financial accounting
information.

Be able to carry out basic analysis of the performance and financial position of an
organisation from its financial statements.

Understand/appreciate the information needs of managers and the strategic role of
management accounting information;

Identify and use cost information for product/service costing, control and decisionmaking purposes; Apply decision-making concepts to a variety of business situations.
Students completing the Financial & Management Accounting module are expected to
participate in session discussions and learning activities and be familiar with recent
developments in the business world.
b. Themes and topics
Financial & Management 
Accounting
Understand the role of accounting in an organisation.

Appreciate the significance and limitations of accounting.

Appreciate the basic rules and conventions under which
statements are compiled.

Identify & understand the basic components of financial
statements.

Prepare financial statements.
8
Interpretation of Financial 
Statements
Identify the major categories of ratios that are used for
analysis purposes.

Be able to calculate important ratios and explain their
meaning and significance.

Understand their limitations and potential problems.

Appreciate cost behaviour and the relevance of fixed and
variable costs.

Develop an awareness of the different types of costs, and
the ways in which costs can be classified.

Appreciate how the cost of a product or service is
calculated based on the different elements of cost.
Cost Behaviour
Profit 
Cost
Volume
Analysis

Understand break-even charts. Calculate point where
target profit is made.

Calculate the break-even point for any particular activity i.e.
the point at which sales revenues and costs are equal.

Calculate margin of safety.

Explain the usefulness of absorption costing to managers.

Understand how overheads are incorporated into the cost
of a product or service.

Calculate an overhead absorption rate and use this to
derive a product cost.

Explain and deal with the under- or over-absorption of fixed
overheads.
Costing 
Explain the reasons for and basis of Activity Based
Costing.
Costing/Job Costing
Activity
(ABC)
Based
Use the marginal cost equation to solve problems.
Cash Flows Budgeting

Compare traditional and ABC systems.

Calculate product costs using ABC.

Discuss the limitations of ABC.

Understand the basis of cash flows budgeting.

Explain why we produce cash flow budget.
Module Text:
Accounting – An Introduction: by Eddie McLaney & Peter Atrill 6th edition. (FT-Prentice-Hall,
2012).
9
c. Learning Materials
For this module, please read the assigned chapters in the prescribed text and the additional
readings assigned (see list below).
Readings from Prescribed Text:
Chapter 1-16
Other Assigned Readings (essential):
Handouts supported by the lecturer.
Exercises.
Other useful sources
Students completing this module are expected to participate in session discussions and
learning activities and be familiar with recent developments in the business world. To
facilitate this, the following source material is useful

The Economist

The Wall Street Journal

The South China Morning Post

The Financial Times

Business Week

Fortune
10
PART 3: MODULE DELIVERY SCHEDULE
The module delivery relies on students’ ability to engage in prior preparation, to seek
confirmation and clarification as appropriate and to be actively engaged during the sessions.
a. Session Arrangements
Each student is expected to attend and be prepared for all sessions. The tables below
outline the structure for the session for each of the groups. Exercise and case studies will be
given in class.
Group 1: Module Delivery Schedule
No.
Topic
Date
Day
6 Jan 2017
Fri
Time
9:00am to 12:30pm
1
Introduction to Accounting
1:30pm to 5:30pm
Interpretation of Financial Statements
9:00am to 12:30pm
7 Jan 2017
2
Sat
Cost Behaviour
1:30pm to 5:30pm
Cost Volume Profit Analysis
9:00am to 12:30pm
8 Jan 2017
3
Sun
Costing/Job Costing
1:30pm to 5:30pm
Activity Based Costing (ABC)
9:00am to 12:30pm
9 Jan 2017
4
Mon
Cash Flows Budgeting
1:30pm to 5:30pm
Group 2: Module Delivery Schedule
No.
Topic
Date
Day
12 Jan 2017
Thu
Time
9:00am to 12:30pm
1
Introduction to Accounting
1:30pm to 5:30pm
Interpretation of Financial Statements
9:00am to 12:30pm
13 Jan 2017
2
Fri
Cost Behaviour
1:30pm to 5:30pm
Cost Volume Profit Analysis
9:00am to 12:30pm
14 Jan 2017
3
Sat
Costing/Job Costing
1:30pm to 5:30pm
Activity Based Costing (ABC)
9:00am to 12:30pm
15 Jan 2017
4
Cash Flows Budgeting
Sun
1:30pm to 5:30pm
11
Group 3: Module Delivery Schedule
No.
Topic
Date
Day
19 Jan 2017
Thu
Time
9:00am to 12:30pm
1
Introduction to Accounting
1:30pm to 5:30pm
Interpretation of Financial Statements
9:00am to 12:30pm
20 Jan 2017
2
Fri
Cost Behaviour
1:30pm to 5:30pm
Cost Volume Profit Analysis
9:00am to 12:30pm
21 Jan 2017
3
Sat
Costing/Job Costing
1:30pm to 5:30pm
Activity Based Costing (ABC)
9:00am to 12:30pm
22 Jan 2017
4
Sun
Cash Flows Budgeting
1:30pm to 5:30pm
Preparation Required in Advance of Sessions / Seminars
In addition to Assignment 1, you are expected to have read the above topics in advance of
meeting the module coordinator / course lecturer at the seminars. Students are expected to
be fully familiar with them. These readings are an important learning source and supplement
the session and text materials.
b. Student Engagement
During the sessions, students are expected to be able to discuss issues arising from the
assigned chapters and readings for the topics as scheduled above.
Session participation is a vital element in the design of this module. Therefore, all students
are expected to engage in class discussion and debate in order to facilitate the formation of
their critical judgements.
To support your learning, Power-Point slides will be available which may need to be
upgraded / modified during or following the sessions depending on the issues raised.
c. Office Hours
I will be available from 30 minute before the start of every class. Please arrange with me in
advance should you wish to meet me individually to discuss any aspect of this module.
12
PART 4: ASSESSMENT DETAILS
Assessment is undertaken to establish the extent of student learning on completing a module
and according to Biggs and Tang1 (2009) it is the senior partner of teaching and learning.
This module has three assessment components with specific weightings and marks awarded
totalling 1002. The purpose of each assessment is as follows:

Assessment 1 – Individual Assignment: This assignment aims to develop learning
interest of students to the module of Financial & Management Accounting.

Assessment 2 – Group Project: This assignment is designed to assess the broad
understanding and application of financial and management accounting principles to
various management decisions.

Assignment 3 – Examination: This assignment is the formal closed book examination
which aims to get insights on your understanding of accounting theory and practice
addressed in the module.
Students are expected to complete all assignments ensuring that they are submitted by the
specified date. All submissions must be typed, be well laid out, written in an academic style
with appropriate headings (introduction, main part and concluding comments) and sections.
Please ensure that all submissions are entirely your own work – for UCD’s policy on
plagiarism click on the link http://www.ucd.ie/registry/academicsecretariat/plag_pol_proc.pdf
Students are expected to complete all assignments ensuring that they are submitted by the
specified date. The weighting assigned for each component is shown in Table 2 below. (* I =
Individual; G = Group)
Table 2 – Assessment Components
Assessment components
Weighting
Individual / Group*
1. Assignment 1
10%
Individual
2. Assignment 2
20%
Group (maximum 3 students)
3. Assignment 3
70%
Individual
Module Assessment Components
1
Biggs, J. and Tang, C. 2009, Teaching for Quality Learning at University, Maidenhead: Open
University/McGraw Hill.
2
As the Overseas Programme modules are worth 10 ECTS they should be graded out of 200 marks.
13
In the following pages, further details of each assessment component are presented along
with expectations in relation to prior preparation and completion.
To support student learning, provide detailed grade descriptors for their submission –
indicate what standards need to be met for a student to get an A, B, C, D, E, F, G or NG
grade are listed in Table 3: UCD Grading System.
(i) Assignment 1 – Individual Assignment; Date: 19th February 2017
Assignment 1 addresses on fundamental concepts in financial accounting and management
accounting.
Answer both Question 1 and Question 2. Maximum words count for Assignment 1 is
800 words.
Please read the Grade Descriptors in Assignment 1 Grade Descriptor Table in Table 4.
Assignment 1
Question 1
(60 marks)
Explain the strengths and weaknesses of these kinds of business ownership: sole
proprietorship, partnership and limited company.
Question 2
(40 marks)
Discuss 4 main distinctions/ differences between Financial Accounting and Management
Accounting.
(Total: 100 marks)
(End)
14
(ii) Assignment 2: Group Project
Assignment 2 is aimed to enhance students’ understanding on the board concepts and
theories of financial and management accounting and their application in business decision
making. Both quantitative questions and qualitative questions are set to assess students’
capacity in correct calculation and critical discussion on the use of the calculated results for
decision making purpose.
Answer both Question 1 and Question 2. Maximum words count for Assignment 2 is
1,500 words.
This assignment must be completed in group of 3 persons.
As this is a group assignment, all members of the group will receive the same mark for the
written submission of the project. However, all members are also required to submit an
individual paper recording their contribution to group project. These individual papers should
include reflections and experiences of working on the project within the group context.
Reflections should include such elements as how the project contributed to the student’s
overall learning on the module, how the group worked together, limitations within the activity,
etc.
You should also complete the Team Agreement Form which can be found in the Orientation
folder on the Programme Area on Blackboard and is also included in the appendices at the
end of this study guide. Please refer to Appendix 2.
Please read the Grade Descriptors in Assignment 2 Grade Descriptor Table in Table 5.
15
Assignment 2 Deadline 3rd March 2017
Question 1
(50 marks)
Best Ltd, an advertising agency, is considering a purchase of new equipment at the end of
November. The investment has been budgeted at €250,000. The management needs to
evaluate how much cash will be available at the end of the year, so that they can decide how
to finance new investment.
The Accounting Department provided you with the following information:
1. Cash available at the end of August 2016 is €10,000.
2. Sales in July were €220,000 and they increasing of 10% on monthly basis.
3. 70% of sales is collected in cash, the remaining 30% is collected with two months credit.
4. Monthly purchases are 60% of the previous month sales. All purchases are on credit basis
and are paid in first month after purchase.
5. Wages and commission are paid each month. Wages are fixed amount of €12,000 and
commission is 7% of previous month sales.
6. Management overheads are €20,000 and are paid on monthly basis
7. The company has set up a standing order to pay the rent and council tax. The payments
will start in January and the amount is €12,000 every two months.
8. Telephone, heating and electricity bills to pay are estimated to be €17,000 every month.
9. The depreciation charge for the companies fixed assets is €13,000 per month.
10. A loan of €150,000 has been taken in January 2016. The interest rate is 10% p.a. Best
Ltd, is repaying the interest on the loan on bi-monthly basis, starting from February 2016.
11. The tax bill is €30,000 and it has to be paid in November.
12. The minimum amount of cash the company needs to retain at the end of each month is
€20,000.
Required:
(a) Prepare a report that presents the company cash position over the period of September
2016 to November 2016. Based on your findings advice Best Ltd td on possibility of
financing purchase of new equipment.
(30 marks)
(b) In the future Best Ltd is considering using one of the two approaches: top down budget
and bottom up budgets. Write a statement critically discussing the use of each of those
two types of budget. Explain advantages and disadvantages of each approach.
(20 marks)
16
Question 2
(50 marks)
Super Automotive is a small automotive engineering company that produces a single product
called the “Wonderful”, which is used as an alternative to the standard alternator in cars and
vans. The summarized profit and loss account for the year ended 31st December 2016 is
shown below:
€
Sales (30,000
units)
Direct materials
Direct labour
Variable overheads
Fixed overheads
Profit
60,000
120,000
90,000
110,000
€
600,000
(380,000)
220,000
Required:
(a) Calculate the following amounts:
(i)
Contribution per unit
(2 marks)
(ii)
Break-even point in units
(2 marks)
(iii)
Margin of safety in units
(2 marks)
(iv)
Profit or loss if the sales were 12,000 units
(2 marks)
(v)
The number of units required to produce a profit of €159,000, assuming the
selling price, variable cost per unit and the fixed costs were to remain the same.
(2 marks)
(b) Draw the breakeven graph. Make sure to label the graph correctly. (Note: Please draw
the graph accurately and legibly. Marks are awarded for accuracy.
(10 marks)
(c) The management evaluate a proposal of reducing the selling price by 10% this will cause
sales to rise by 3,000 units. Calculate the new breakeven point.
(10 marks)
(d) Explain to somebody who has no background in accounting what the breakeven point is,
what are its benefits and drawbacks and demonstrate why everything sold after the
breakeven point is actually profit to the company.
(20 marks)
(End)
17
(iii) Assignment 3: Examination:
The examination (3 hours) and it will take place on Saturday the 18th March 2017. It will
focus on module themes and the material covered in the text, cases, assigned readings and
class discussions. For this, students are expected to demonstrate their understanding of
theory and practice addressed throughout the module. The examination question format will
be designed to allow you show your understanding of the topics discussed and also reveal
your learning (new and prior). More specific guidelines regarding the examination paper
format and questions will be provided during the final session.
The examination paper has three sections. Students are required to answer all the three
sections according to the following format:
Section A
Compulsory 25 multiple-choice questions from financial accounting and
management accounting topics.
Section B
Answer 1 question from a choice of 2 questions on financial accounting topics.
Section C
Answer 1 question from a choice of 2 questions on management accounting
topics.
Short questions are developed which require students to make correct calculations using
various financial accounting and management accounting methods as described in the
module outline. Students will have the opportunity to ask questions about its design and style
and be advised the type of answers expected.
Please read the Grade Descriptors in Assignment 3 Grade Descriptor Table in Table 6.
A recent past examination paper is included in Appendix of this Study Guide, please
noted and prepared for the different style of examination format and questions. The
purpose of the past examination paper is to specific the level of the type of questions
asked in the examination. No solution to be provided.
18
PART 5: GRADING
This section of the Study Guide provides students with details of the UCD grading system
and also explains criterion referenced grading (UCD Policy). Under criterion referenced
grading, students are graded on the quality of their work without reference to other students
(norm referenced). For instance, the submission that meets the required guidelines in terms
of writing style, analysis, description and / or summary will be awarded according to the
standards set out. All students’ work is graded to indicate the standard attained using the
criterion referenced approach.
Table 3: UCD Grading System
Grade
Description
A+
A
Grade Point
4.2
Excellent
4.0
A-
3.8
B+
3.6
B
Very good
3.4
B-
3.2
C+
3.0
C
Good
2.8
C-
2.6
D+
2.4
D
Acceptable
D-
2.2
2.0
E
Marginal
1.6
F
Fail (unacceptable, no compensation)
1.0
G
Fail (Wholly unacceptable; no compensation)
0.4
Fail (Wholly unacceptable; no relevant attempt)
0.0
NG
19
More specific grade descriptors are set out for your assessment components in the following
pages. Table 4 below provides descriptors for Assignment 1 – please read them prior to
submitting your work.
Table 4: Grade Descriptors – Assignment 1 (Individual Assignment)
Grade
A
Criteria
A comprehensive, highly-structured, focused and concise response to the
assessment task, consistently demonstrating:
 an extensive and detailed knowledge of the subject matter
 a highly-developed ability to apply this knowledge to the task set
A thorough and well-organised response to the assessment task, demonstrating:
B
 a broad knowledge of the subject matter
 considerable strength in applying that knowledge to the task set
An adequate and competent response to the assessment task, demonstrating:
C


adequate but not complete knowledge of the subject matter
omission of some important subject matter or the appearance of several minor
errors
 capacity to apply knowledge appropriately to the task albeit with some errors
The minimum acceptable standard of response to the assessment task which:
D

E


F

shows a basic grasp of subject matter but may be poorly focussed or badly
structured or contain irrelevant material
 has one major error and some minor errors
 demonstrates the capacity to complete only moderately difficult tasks related to
the subject material
Inadequate and incompetent response to the assessment task, demonstrating:
inadequate and incomplete knowledge of the subject matter
omission of major important subject matter or the appearance of several major
errors
 lack capacity to apply knowledge appropriately to the task albeit with major
errors
Unacceptable standard of response to the assessment task which:
shows minimum grasp of subject matter and poorly focussed or badly
structured and
 has some major errors and minor errors
 lack capacity to complete moderately difficult tasks related to the subject
material
Minimum evidence of attempting the assessment task
G
 Lack evidence of relevant answers to the questions
 Lack capacity to understand fully the expectation of the questions
Not answering the questions asked in the assessment task at all.
NG


Lack evidence of relevant answers to the questions
Did not understand the expectation of the questions
While the criteria detailed above refer to A – D grades (inclusive) only, please note that all bands will
be used (A+, A and A-; B+, B and B- etc) for grading assignments.
20
TABLE 5: Grade Descriptors – Assignment 2 (Group Project)
Grade
A
B
Criteria
A comprehensive, highly-structured, focused and concise response to the
assessment task, consistently demonstrating:
 an extensive and detailed knowledge of the subject matter
 a highly-developed ability to apply this knowledge to the task set
A thorough and well-organized response to the assessment task,
demonstrating:
 a broad knowledge of the subject matter
 considerable strength in applying that knowledge to the task set
An adequate and competent response to the assessment task, demonstrating:
C
D


adequate but not complete knowledge of the subject matter
omission of some important subject matter or the appearance of several
minor errors
 capacity to apply knowledge appropriately to the task albeit with some
errors
The minimum acceptable standard of response to the assessment task which:

shows a basic grasp of subject matter but may be poorly focussed or badly
structured or contain irrelevant material
 has one major error and some minor errors
 demonstrates the capacity to complete only moderately difficult tasks
related to the subject material
Inadequate and incompetent response to the assessment task, demonstrating:
E


F

inadequate and incomplete knowledge of the subject matter
omission of major important subject matter or the appearance of several
major errors
 lack capacity to apply knowledge appropriately to the task albeit with major
errors
Unacceptable standard of response to the assessment task which:
shows minimum grasp of subject matter and poorly focussed or badly
structured and
 has some major errors and minor errors
 lack capacity to complete moderately difficult tasks related to the subject
material
Minimum evidence of attempting the assessment task
G
 Lack evidence of relevant answers to the questions
 Lack capacity to understand fully the expectation of the questions
Not answering the questions asked in the assessment task at all.
NG


Lack evidence of relevant answers to the questions
Did not understand the expectation of the questions
While the criteria detailed above refer to A – D grades (inclusive) only, please note that all bands will
be used (A+, A and A-; B+, B and B- etc) for grading assignments.
21
TABLE 6: Grade Descriptors – Assignment 3 (Formal Closed Book Examination)
Grade
A
B
Criteria
A comprehensive, highly-structured, focused and concise response to the
assessment task, consistently demonstrating:
 an extensive and detailed knowledge of the subject matter
 a highly-developed ability to apply this knowledge to the task set
A thorough and well-organized response to the assessment task,
demonstrating:
 a broad knowledge of the subject matter
 considerable strength in applying that knowledge to the task set
An adequate and competent response to the assessment task, demonstrating:
C
D


adequate but not complete knowledge of the subject matter
omission of some important subject matter or the appearance of several
minor errors
 capacity to apply knowledge appropriately to the task albeit with some
errors
The minimum acceptable standard of response to the assessment task which:

shows a basic grasp of subject matter but may be poorly focussed or badly
structured or contain irrelevant material
 has one major error and some minor errors
 demonstrates the capacity to complete only moderately difficult tasks
related to the subject material
Inadequate and incompetent response to the assessment task, demonstrating:
E


F

inadequate and incomplete knowledge of the subject matter
omission of major important subject matter or the appearance of several
major errors
 lack capacity to apply knowledge appropriately to the task albeit with major
errors
Unacceptable standard of response to the assessment task which:
shows minimum grasp of subject matter and poorly focussed or badly
structured and
 has some major errors and minor errors
 lack capacity to complete moderately difficult tasks related to the subject
material
Minimum evidence of attempting the assessment task
G
 Lack evidence of relevant answers to the questions
 Lack capacity to understand fully the expectation of the questions
Not answering the questions asked in the assessment task at all.
NG


Lack evidence of relevant answers to the questions
Did not understand the expectation of the questions
While the criteria detailed above refer to A – D grades (inclusive) only, please note that all bands will
be used (A+, A and A-; B+, B and B- etc) for grading assignments.
22
PART 6: CONCLUDING COMMENTS
This Study Guide is designed to assist and guide your learning for this module. It is important
that you read it regularly and do so in conjunction with the core text, the assigned readings
and session materials. Should you need clarification on issues covered, please let me know
during the seminar sessions.
I hope you enjoy the module and wish you good luck with the rest of your study and for the
future.
Dr. Ming Yen Tan
January 2017
23
APPENDIX 1
UCD SCHOOL OF BUSINESS
STUDENT CODE OF PRACTICE – GROUP WORK3
There are many reasons for using group work in higher education such as enhancing student
learning, promoting social interaction among students, developing generic skills (including
negotiation, delegation and leadership) and the individual students’ strengths and expertise.
There is an onus on the group to ensure that individual members provide maximum effort in
completing the assigned task/project. There is evidence to suggest that individuals frequently
exert less effort on collective tasks than on individual tasks (Williams and Karau, 1991)4. As
the group size increases the Ringlemann Effect emerges: there can be an inverse
relationship between the size of the group and effort expended. It is fair to assume that
group effectiveness will increase when members work on tasks that are mutually important
and when each member believes they are contributing to an end goal.
UCD School of Business personnel are obliged to ensure that the operation and
management of assigned group-work are consistent with the integrity of the university
assessment process. It is also expected that, where the group-work contributes to a module
grade, members are awarded grades that accurately reflect their contribution to the
completion of the task.
This Code of Practice is developed to guide the work of student groups within an academic
setting and safeguard the integrity of group-based projects as part of our assessment of
student learning outcomes.
1. All Group members (whether assigned or self selected) are expected to contribute
actively and equitably to the completion of the exercise/project.
2. All groups will set out and agree basic ground rules for their group in terms of group
communication procedures, performance targets, arranging and organizing meetings,
records, progress reports, solving problems, finalizing the project and signing off.
3. Roles (such as leader, convener or facilitator) might be assigned to particular group
members to facilitate the working of the group and specific milestones (weekly) agreed.
4. Group membership diversity (cultural, professional etc.) needs to be acknowledged,
valued and utilized as appropriate.
3
Members of the School of Business Teaching and Learning Committee contributed to the
development of this protocol.
4
Williams, K.D., & Karau, S. J. (1991). Social loafing and social compensation: The effects of
expectations of co-worker performance. Journal of Personality and Social Psychology, 61(4), 570-581.
24
5. Group work undertaken by UCD School of Business students is subject to UCD policy on
academic programmes. For further details on this policy go to
http://www.ucd.ie/registry/academicsecretariat/student_code.pdf
6. UCD promotes an environment upholding the dignity and respect of all students as set
out in its policy on Dignity and Respect –
University College Dublin is committed to the promotion of an environment for work
and study which upholds the dignity and respect of the individual and which supports
every individual’s right to study and/or work in an environment which is free of any
form of harassment, intimidation or bullying.
The university recognizes the right of every individual to such an environment and
requires all members of the University community to recognize their responsibilities in
this regard.
Students are advised to read this policy document – click on:
http://www.ucd.ie/equality/policieslegislation/dignity_respect_policy.pdf
7. Any group member who is concerned about a member’s contribution to the group work
(and associated activities) must firstly communicate this (at the earliest time possible) to
the group members, and they must strive to resolve the problem.
8. If a group member believes that his/her concerns have not been addressed satisfactorily
within the group, the matter should be brought to the attention of the module coordinator.
The module coordinator/learning support officer (LSO) should strive to resolve the issue
at group level. Where this has not been achieved, the Academic Coordinator and/or the
School Head of Teaching and Learning will be informed.
9. Should the issues not be resolved, the parties above, taking into consideration the
stipulations of this code and the University policy documents to which it refers, will to
seek to mediate to find a solution, which is acceptable to group members and which
retains the integrity of the group work assessment process.
25
APPENDIX 2: TEAM AGREEMENT FORM
TEAM MEMBERS
CONTACT DETAILS
MOBILE
EMAIL
1
2
3
4
5
INFORMAL COMMUNICATION
We have decided
1)
2)
3)
MEETINGS
We have decided
1)
2)
3)
MAKING DECISIONS
We have agreed
1)
2)
3)
4)
5)
SANCTIONS
We hope to work in harmony together. We have different strengths. We accept that this is a group
piece of work and we are all responsible for doing our best. However we agree now that


If individuals have difficulties in working with the team or on the task, we will try to sort
them out promptly by talking with each other
We will seek advice - as soon as is possible - from our tutor for those serious problems which
we cannot resolve ourselves.
SIGNED
26
APPENDIX 3: 2 Important Documents
GUIDELINES FOR SUBMISSION
You are advised to read the following important documents before you commence your
studies on this module:
1. Guidelines for the Late Submission of Coursework
This document provides a detailed outline of the rules and regulations surrounding the
presentation, submission and marking of assignments. The guidelines provided must be
adhered at all times to avoid an unnecessary loss of marks. Further details on
www.ucd.ie/registry/academicsecretariat/late_sub.pdf
2. A Briefing Document for Students on Academic Integrity and Plagiarism.
The University understands plagiarism to be the inclusion of another person’s writings or
ideas or works, in any formally presented work (including essays, theses, examinations,
projects, laboratory reports, oral, poster or slide presentations) which form part of the
assessment requirements for a module or programme of study, without due
acknowledgement either wholly or in part of the original source of the material through
appropriate citation. Further details please go to
www.ucd.ie/registry/academicsecretariat/plag_pol_proc.pdf
Plagiarism is a form of academic dishonesty. In any assignment, plagiarism means that
you have presented information or ideas belonging to someone else falsely as being your
own original thoughts on a subject.
All assessments/projects submitted must be the result of your own work.
The following statement must be included on the cover page of all assignments
submitted:
I declare that all materials included in this essay/report/project/dissertation is the end
result of my own work and that due acknowledgement have been given in the
bibliography and references to ALL sources be they printed, electronic or personal.
Signed: Student name/s, student number
Date:
27
APPENDIX 4 – Past Examination Paper - Note to Students: Providing a copy of
this paper does not signify that future papers will follow the exact same format.
SEMESTER I EXAMINATION – 2016
ACADEMIC YEAR - 2015/2016
Bachelor of Business (Sri Lanka) BSc19 Part-Time
Financial & Management Accounting
ACC2002L
Professor Eamonn Walsh
Dr. Antoinette Flynn
Dr. Ming Yen Tan*
Time Allowed: 3 Hours
Instructions for candidates
The examination paper has three sections. Students are required to answer all three
sections as follows:
Section A Compulsory 25 multiple choice questions.
Section B Answer 1 of 2 questions.
Section C Answer 1 of 2 questions.
Instructions for Invigilators
Non-programmable calculators without a long-term data memory are permitted.
28
Section A – Multiple Choice Questions
(Total: 50 marks)
The following 25 items consist of a statement followed by FOUR possible
answers. You are required to select the most appropriate answer. Please enter
your answers in your exam script in the following format
Q1 A
Q2 B
Q3 C
Q4 A and so on.
Each item carries 2 marks. Negative marking will NOT apply.
1.
On 1 July 2013 Jason bought a machine for €15,500. He depreciates machinery
at a rate of 20% per annum on the reducing balance basis. A full year’s
depreciation is charged in the year an asset is purchased. His year end is
October 31. What is the depreciation charge on the machine for the year to 31
October 2015?
A.
B.
C.
D.
2.
In September 2015 Alice paid €15,600 for rent for the four months from
1 October 2015. What should be reported on Alice’s balance sheet at
30 November 2015?
A.
B.
C.
D.
3.
An accrual of € 7,800.
A prepayment of € 7,800.
An accrual of € 3,900.
A prepayment of € 3,900.
Which of the following is a current liability?
A.
B.
C.
D.
4.
€ 1,984.
€ 3,100.
€ 2,480.
€ 2,232.
Prepayment
Accrual
Cash at bank balance
Closing balance of inventory
Which of the following accounting equations is correct?
A.
B.
C.
D.
current assets = current liabilities
assets + capital = total liabilities
current assets less current liabilities = net current assets
fixed assets less current liabilities = capital
29
5.
A business borrowed € 6,800 from its bank, and used the cash to buy a new
computer. How is the accounting equation affected by these transactions?
A.
B.
C.
D.
6.
Liabilities
Decreased
Increased
Increased
Decreased
Using the following information, calculate the working capital:
€
Trade Receivables
6,000
Current Tax payable
3,000
Bank overdraft
3,000
Loan receivable within one year
1,000
Trade Payables
4,000
A.
B.
C.
D.
7.
Assets
Unchanged
Unchanged
Increased
Increased
€ Nil
€ (3,000)
€ (5,000)
€ 3,000
The accountant for the golf club shop has valued the shop inventory at the end
of the year as being €10,000. The accounting records show the following
amounts for the year from the books:
€
Purchases
84,000
Goods
returned
to
2,000
suppliers
Inventory at the beginning
16,000
The mark up on cost is 100%. What are the sales for the year?
A.
B.
C.
D.
8.
€122,000
€156,000
€150,000
€176,000
An organisation’s balance sheet represents:
A.
B.
C.
D.
A summary of the cash inflows and out flows of the organisation during a
particular period.
The trading performance of the organisation from a particular period.
The financial position of the organisation at a particular point in time.
The reconciliation of the balance per the bank statement with the
company’s own records
30
Information common to Question 9 and Question 10:
€
Sales
120,000
Rent expense
8,000
Interest expense
1,600
Cost of sales
64,000
Trade receivables
24,000
Salaries expense
16,000
Advertising expense
4,000
Office supplies expense
4,000
Corporation tax expense
2,960
9.
Gross profit is:
A. € 104,000
B. € 56,000
C. € 32,000
D. € 8,000
10. Net profit before interest and tax (PBIT) is:
A.
B.
C.
D.
€40,000
€24,000
€22,400
€19,440
11. In a traditional manufacturing company, product costs include:
A.
B.
C.
D.
Direct materials only.
Direct materials and direct labour only.
Direct materials, direct labour, and factory overhead.
Direct materials, direct labour, factory overhead, and selling and
administrative expenses.
12. The most likely strategy to reduce the breakeven point, would be to
A.
B.
C.
D.
Increase both the fixed costs and the contribution margin.
Decrease both the fixed cost and the contribution margin.
Decrease the fixed costs and increase the contribution margin.
Increase the fixed costs and decrease the contribution margin.
13. Prime cost can be defined as:
A. The total costs of manufacturing a product.
B. The cost of the first stage of the manufacture of a product.
C. The total costs of operating the production department where the product
is made.
31
D. The total direct costs of manufacturing a product.
14. Bravo Limited is a single product company and the following information is
provided:
Selling price (unit)
€20
Expected sales
5,000 units sold
Variable cost (unit)
€12
Fixed costs (total)
€25,000
What is the company’s margin of safety percentage for the budget period?
A. 62.6%
B. 37.5%
C. 28.5%
D. 27.5%
15. Of the four costs shown below, which would NOT be included in the cash
budget of an insurance firm?
A.
B.
C.
D.
Depreciation of non-current assets.
Commission paid to agents.
Office salaries.
Capital cost of a new computer.
16. Which of these is NOT immediately a cash inflow?
A.
B.
C.
D.
Credit sales
Interest received
Cash from customers for goods
Cash from sale of fixed assets
17. The direct costs of a paint manufacturer would usually include:
A.
B.
C.
D.
Bad debts.
Straight-line depreciation of equipment in the mixing process.
Labour costs of supervisory personnel.
Labour costs of workers working at the production line.
18. The following data are provided by Bravo Manufacturing Limited:
Budgeted labour hours
8,500
Budgeted overhead
€148,750
Actual labour hours
7,928
Actual overhead
€146,200
Based on the data given above, what is the predetermined labour hour
overhead absorption rate?
32
A.
B.
C.
D.
€ 18.76 per hour
€ 18.44 per hour
€ 17.50 per hour
€ 17.20 per hour
19. A Manufacturing Company predicted the following figures for the year starting
1 January 2015:
Production overhead
Direct labour (hours)
Hours of machine time
Department A
€36,000
20,000
10,000
Department B
€32,000
16,000
10,000
The company uses departmental overhead rates in absorbing production
overheads with the “cost driver” being machine-hours for Department A and
direct labour hours for Department B. The following estimates relate to Job 101
processed during the above year:
Direct labour hours worked
Hours of machine time taken
Department A
150
75
Department B
160
80
The total overhead to be assigned (for both departments) to Job 101, based on
the above information is:
A.
B.
C.
D.
€ 270
€ 320
€ 590
€1,116
20. A manufacturing company has a highly automated manufacturing plant
producing many different products. What is the most appropriate basis of
applying factory overhead costs to units of output?
A.
B.
C.
D.
Direct labour hours
Direct labour cost
Machine hours
Cost of materials used.
21. Which of the following is most likely to be a variable cost, where the cost driver
is the number of units produced?
A.
B.
C.
Advertising of a new product.
The cost of material used in manufacturing a new product.
The rent on factory premises for a new product.
33
D.
Straight line depreciation of equipment in the factory which produces the
new product.
22. When administered intelligently, budgets should:
A.
B.
C.
D.
Compel managers to look ahead
Provide a yardstick for evaluation
Promote communication and coordination
All of the above.
23. Activity-based costing could be appropriate in which of the following types of
organization?
A.
B.
C.
D.
Airline companies
Hospitals
Financial institutions
All of the above.
Question 24 and Question 25 are based on the following information:
Maintenance expenses of a company were analysed for purposes of cost prediction.
Examination of past records disclosed the following costs and volume measures:
Cost per month
Machine hours
High
Low
€39,200 €32,000
24,000 15,000
24. Using the high-low method of analysis, the estimated variable cost per machine
hour is:
A.
B.
C.
D.
€ 1.25
€12.50
€ 0.80
€ 0.08
25. Using the high-low technique, the estimated monthly fixed costs for
maintenance expenditure are:
A.
B.
C.
D.
€240,000
€ 20,000
€ 12,000
€ 19,200
34
Section B – Financial Accounting
Answer ONE question only from this section. All questions carry equal marks.
Question 1 (Total: 25 marks)
The following balance has been extracted from the ledgers of Jack Trading on
31 December 2015.
€
Purchases
37,364
Sales
98,480
Bad debts
392
Light and heat
2,080
Repairs
2,280
Trade receivables
18,600
Discount allowed
1,720
General expenses
1,840
Travelling expenses
2,600
Inventory as at 1st Jan 2015
15,920
Cash in hand
160
Printing and Stationary
700
Capital account
42,292
Trade payables
6,160
Equipment
31,000
Rates
1,520
Loan interest paid
300
Fixtures & fittings
14,000
Drawings
3,000
Rent received
1,380
Salaries and wages
14,596
Cash at bank
6,240
6% bank loan payable in
6,000
2017
The following notes are also relevant:
1. Make a Bad Debts Provision of
€ 900.
2. Depreciation for Fixtures and Fittings is to be charged at a rate of 10% of cost.
3. Depreciation for Equipment is to be based on straight line method with no
residual value at the end of its useful life. The useful life is 5 years.
4. Adjustment need to be made for the following items at the end of the year:
- Rent received in advance € 60.
- Rates prepaid
€ 120.
- Wages accrued due
€ 100.
5. Inventory as at 31 December 2015 was valued at € 6,744.
6. Taxation of € 3,600 is to be provided on the profit of the year.
Required:
(a)
Prepare an Income Statement for the year ended 31 December 2015.
(12 marks)
35
(b)
Prepare a Balance Sheet as at the 31 December 2015.
(13 marks)
(Total: 25 marks)
Question 2 (Total: 25 marks)
Apple Limited and Orange Limited are two companies that are similar in size and in
the same industry. The summarised final accounts of the two companies are as
follows:
€'000
Non-Current Assets
Current Assets
Inventories
Trade debtors
Bank
1,800
1,200
600
Current Liabilities
Trade creditors
Bank overdraft
1,000
-
Balance sheet as at 30 June 2015
Apple Ltd
Orange Ltd
€'000
€'000
€'000
2,400
2,200
3,600
1,000
2,600
1,760
880
-
1,144
1,276
2,640
2,420
220
Net Current Assets
5,000
2,420
Financed by:
Ordinary shares of €1 each, fully
paid
Retained Earnings
3,000
2,200
2,000
5,000
220
2,420
Trading and profit and loss for the year ended 30 June 2015
Apple Ltd
Orange Ltd
€'000
€'000
Sales
6,500
5,500
Less: Cost of goods sold
5,150
4,840
Gross Profit
1,350
660
Operating expenses
950
880
Profit (Loss) for the year
400
(220)
Note: Purchases for the year ended 30 June 2015 are as follow:
Apple Limited
- €5,350,000
36
Orange Limited
- €4,750,000
Required
(a) Calculate to two decimal places the following ratios for Apple Limited and
Orange Limited for the year 2015:
(i)
Gross profit ratio
(2 marks)
(ii)
Net profit ratio
(2 marks)
(iii)
Return on capital employed
(2 marks)
(iv)
Current ratio
(2 marks)
(v)
Acid test ratio
(2 marks)
(vi)
Debtors’ collection period
(2 marks)
(vii)
Creditors’ repayment period
(2 marks)
(b) Write a brief comment on the financial performance of the two companies in
terms of profitability.
(4 marks)
(c) Write a brief comment on the financial position of the two companies in terms of
short-term liquidity.
(4 marks)
(d) Identify THREE limitations of ratio analysis.
(3 marks)
(Total: 25 marks)
37
Section C – Management Accounting
Answer ONE question only from this section. All questions carry equal marks.
Question 3 (Total: 25 marks)
Brown Manufacturing Limited is engaged in the processing and selling of Product
SUPER. During the coming year, the management has determined the following cost
structure for Product SUPER.
Cost of material
Processing costs:
Variable
Fixed
€ 708 per kilogram
€ 210 per kilogram
€ 1,920,000 per year
Marketing costs:
Variable
Fixed
€ 162 per kilogram
€ 960,000 per year
Administrative costs
All fixed, € 1,740,000 per year
It is estimated that the company can sell all its output for the coming year at €1,500
per kilogram of material processed. Assume there is no loss or gain during the
processing of material.
Required:
(a)
What is the contribution margin for Brown Manufacturing Limited?
(2 marks)
(b)
What is the break-even point (in revenue) for Brown Manufacturing Limited?
(3 marks)
(c)
How many units does Brown Manufacturing Limited need to sell if the
company wants a profit of € 1,797,600?
(3 marks)
(d)
What is the maximum amount that Brown Manufacturing Limited can afford to
pay per kilogram of material and still break-even and selling only 120,000
kilogram of material during the current year?
(5 marks)
(e)
List THREE reasons to explain why break-even analysis can be a really useful
management tool.
(6 marks)
(f)
List THREE limitations of Cost-Volume Profit Analysis.
(6 marks)
38
(Total: 25 marks)
Question 4 (Total: 25 marks)
The following data relate to costs, output volume and cost drivers of Ace Supplies
Ltd. for June:
Product A Product B Product C
Production and Sales (Units)
6,000
4,000
3,000
Direct Production Costs
Direct materials
Direct labour
€ per unit
12
3
15
Labour hours per unit
Machine hours per unit
No. of production runs
No. of deliveries to customers
No. of production orders
No. of deliveries into store
0.5
2
8
3
30
17
Production Overhead Costs
Machining
Set-up costs
Materials handling (receiving)
Packing costs (dispatching)
Engineering
€
143,000
21,000
70,000
45,000
51,000
330,000
€ per unit
11
6
17
1
1
2
2
5
3
€ per unit
8
2
10
0.33
2
10
10
15
20
Indirect production overheads that are not driven by production volume are:
Item
Cost Driver
Set-up costs
Production runs
Materials handling
Deliveries of materials
Packing
Deliveries to customers
Engineering
Production orders
Required:
(a)
Calculate the full production cost per unit of Product C if overheads were
absorbed on the basis of direct labour hours.
(4 marks)
(b)
Calculate the full production cost per unit of Product C using activity-based
costing and the cost drivers described above, with overheads that are driven by
production volume allocated on a machine hour basis.
(10 marks)
(c)
Comment briefly on any conclusions which may be drawn from (a) and (b) above,
which could have pricing and profit implications.
(5 marks)
39
(d)
Describe THREE benefits which might results from introducing ABC system.
(6 marks)
(Total: 25 marks)
oOo
40