ACCA Technician Bulletin January 1998

Level Examiners approach B to the level B examinations

Paper B1: Maintaining Financial Records and Accounts
Approach to the paper The aim of the paper is to provide an opportunity for students to demonstrate their ability to maintain accurate accounting records, to derive basic accounts from these records, and to understand the principles which underpin generally accepted practice. Students will be required to complete practical tasks, rather than to indulge in theoretical discussions. However, it must be stressed that the ability to complete such tasks is highly dependent on a sound knowledge of theory. Syllabus and Examination Format For the June and December 1998 sessions, the structure will broadly adhere to that adopted in the Pilot Paper. Any significant structural changes for future sessions will be discussed in the ACCA Technician Bulletin. There will be three compulsory questions. Marks will not be evenly divided between the three questions. Question 1 will normally represent between 60% and 70% of the total marks, with the remaining marks divided between questions 2 and 3. The marks for each question will be clearly allocated against each element of the question. The paper will not require students to carry out repetitive bookkeeping. Rather, the emphasis will be on logical thought and reasoning. Consequently, the focus will be on checking for and correcting errors, making post trial balance adjustments, and the principles which underpin this work. Accounts preparation will be based on the extended trial balance, although students will be expected to be familiar with the differences in analysis and layout as between sole trader, partnership and manufacturing enterprises. As the paper seeks to develop skills learned in paper A1, some elements of that syllabus may also be revisited in this paper. If such elements are not explicitly included in the syllabus for paper B1, the number of marks awarded will not be significant. Communication skills are essential in any accounting role. The paper may therefore require students to answer in specific communication formats e.g., report, memo, letter or briefing notes. Students should ensure that they are familiar with these formats, and that they answer in the required format. Marks will be awarded for use of the correct format. Finally ... As I have stated above, this paper aims to provide an opportunity for students. In drafting papers, my intention (and that of the team within which I work) is not to catch you out. Rather, we want to see if you can perform the kind of tasks which form the day to day work of an accounting technician.

Paper B2: Cost Accounting Systems

Approach to the paper No examiner seeks to trick or trap candidates. When writing the paper the examiner attempts to replicate situations that would exist in the workplace. In the workplace it is possible for unusual situations to occur. The examiner would expect candidates to be able to deal with some of these situations when they occur in questions. The purpose of the exam is to provide candidates with the opportunity to demonstrate that they have developed some of the cost accounting skills that would be needed in the workplace. The purpose of this article is to advise candidates of the format and style of the paper, and what skills the examiner expects the candidates to demonstrate when answering the questions set. Examination Format The time allowed for the examination will be 2 hours, and the paper will consist of 4 compulsory questions. There are a maximum of 100 marks available and the paper will be structured as shown on page 7. The inclusion of written questions or written elements is to ensure that candidates have developed an appreciation of the underlying reasons for the use of cost accounting and its usefulness in the management of a business. It is not essential that candidates have actual practical experience of cost accounting systems or methods. If they understand the

ACCA Technician Bulletin January 1998

principles they can apply them in any number of operating environments. Balance of underlying knowledge and computational skills At this level the examiner would not expect candidates to have learnt or developed extensive knowledge of cost accounting theory. They should however be aware of the reasons why, for example, particular cost accounting methods are used and which methods would be appropriate for given circumstances. Candidates should become familiar with basic cost accounting terminology and be able to comment upon such terms. It is almost certain that those candidates who become conversant with the underlying principles will be better able to complete computational questions. Presentation of answers It is important to remember that cost accounting, unlike financial accounting, does not always have prescribed formats for presenting information. There are, however, some generally accepted ap-

proaches that can be used in completing computations. Candidates would be advised to become familiar with these, but can be assured that, in assessing their performance, every consideration will be given for alternative presentational formats. Candidates need to ensure that their answers are presented in a legible format with alterations being made as neatly as possible. If the marker is unsure about any of the figures shown, or cannot read them, it will be impossible for them to award marks. Remember that workplace managers would expect information to be provided to them in a clearly readable form. Remember, also, when presenting information in a graphical or diagrammatic form, to take care to ensure accuracy in scaling, to label significant features and to mark any axis appropriately. Matching the examination paper to the syllabus The production of the examination paper is a lengthy one, taking many months. This is of course intentional to ensure, for example, that the final version of the paper matches the requirements of the syllabus and that the questions Marks available 30

are clearly stated. This process is also intended to ensure that candidates who have completed the appropriate amount of study have a fair and reasonable chance of passing the examination. Finally ... Whilst this is a new paper, with its attendant anxieties, candidates should remember that markers make every effort to ensure that examination scripts are marked fairly. Candidates should, to some extent, balance their worries with some excitement at being the first to attempt a new examination.

Paper B3: Information Technology Processes

Approach to the paper This short paper describes my intended approach to examining paper B3. I have divided the syllabus into three sections; Information Technology Fundamentals; Information Technology Application and Information Systems Development and Management. These three sections are described below and example questions are presented for each section. Syllabus and Examination Format Section one: Information Technology Fundamentals Information technology environment Hardware Networks Software Computer files The internet

Question no. 1 2 and 3

Contents is computational only. are mainly computational, but with a requirement to provide a short written answer on particular cost accounting principles or theory. The written element will normally account for between 4 and 6 marks of the 25 available. Question 2 or 3 may require the graphical presentation of information or simple statistical calculations (formulae will be given). candidates are required to select 4 topics from the 6 offered and provide short written explanatory answers. The topics will relate to underlying cost accounting principles, methods or terminology.

25 (each question)

20

Example question (from the Pilot Paper) You have recently taken control of the accounts office of a small business and plan to purchase a personal computer (pc) for general accounts, spreadsheets and access to on-line services. You

ACCA Technician Bulletin January 1998

have placed an order for the machine but the order has been sent back by the owner of the business. He has suggested that a much cheaper machine would suffice and has asked you to explain the significance of some aspects of the specification of the machine you have ordered. Required: Write a short note to the owner explaining the meaning and significance of the following aspects of the pc you have ordered: (a) Windows operating environment. (b) In-built modem. (c) CD-ROM drive. (d) 200 MHz processor. (e) 3 Gbyte hard disk. This example question is typical of the sort of questions that will be set for this section of the syllabus. Questions will focus on description and explanation of technical terms. Section two: Information Technology Application Spreadsheets Order processing Cash processing Nominal ledger Period-end procedures Stock control

package to support that process. An attempt will be made to set practical questions, particularly with reference to spreadsheets. The teaching guide requires candidates to undertake practical exercises and the skills learnt in such sessions will be particularly valuabe to candidates. Section three: Information Systems Development and Management Data processing cycle Information: requirements and attributes output Security in the workplace Systems development

Officers of The Association of Chartered Certified Accountants

President: David Leonard, FCCA Deputy President: Michael Foulds, FCCA Vice President: Ray Gardiner, FCCA Chief Executive: Anthea L. Rose, MA Director: Anthony C. Booth Director: Michael J. Walsh, MA, MSc Director of Finance: Ross Midgley, BA, FCCA, FCA Editor: Alyson Craig Advertisement Manager: Irene Cross Editorial/Advertisement Offices: 1 Woodside Place, Glasgow G3 7QF Telephone: +44 (0)141-309 4070 Telex: 778225 Fax: +44 (0)141-309 4090 E-mail: newsletter@acca.co.uk Internet: http://www.acca.co.uk Published by the Certified Accountants Educational Trust in cooperation with The Association of Chartered Certified Accountants, 29 Lincolns Inn Fields, London WC2A 3EE.

Example question (from the Pilot Paper) You are section leader in an accounts office and have been informed that a team of systems analysts will be visiting your department as part of a systems feasibility study to upgrade the existing computer-based systems.
Required: (a) Describe the methods/techniques which you would expect the system analysts to use in investigating the work of your department. (20 marks ) (b) What role do you feel that you should play in this investigation phase? (5 marks) This example question is typical of the sort of questions that will be set for this part of the syllabus. Questions will require descriptive answers that require appropriate descriptions and the potential role of the accounting technician in this area of systems development. Finally ... The question paper contains four compulsory questions. A question will be set for each section of the syllabus with a further question selected from any section.

Example question Required: What are the main objectives and functions of a stock control system? (10 marks)
Define the content and purpose of three reports produced in a stock control system. (9 marks) Describe how the stock control system could link with sales order processing and manufacturing systems. (6 marks) The questions set for this section will focus on the business process and the contents of a software

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