A Level Accounting 9706 (A2 Accounts) - by ARD | Urdu/Hindi

Based on the provided syllabus content for the Cost and Management Accounting section (4) of a finance-related examination, here is a summary of what candidates are expected to understand and apply:

Activity Based Costing (ABC)

• Understand ABC as an alternative to traditional costing methods.
• Identify cost drivers and allocate overheads based on these drivers.
• Calculate the total cost per unit and selling price to make informed business decisions.
• Recognize the impact of different overhead absorption methods on costs and profits.
• Apply ABC techniques for decision-making, considering supporting data.

Standard Costing

• Comprehend the role of standard costing in organisations.
• Understand the benefits and limitations of a standard costing system.
• Calculate variances related to material, labour, and overheads, and identify their causes.
• Use standard costs as an aid to improve business performance and make decisions based on variance analysis.
• Recognize the significance of non-financial factors in the context of standard costing.

Budgeting and Budgetary Control

• Understand the advantages and disadvantages of budgetary control and using spreadsheets for budget preparation.
• Prepare various elements of a master budget, including sales, production, purchases, labour, trade receivables, trade payables, cash, profit or loss, and financial position statements.
• Account for limiting factors in the budgeting process.
• Understand the benefits of flexible budgeting over fixed budgeting and prepare flexible budgets.
• Reconcile actual performance with budgeted expectations and adjust plans accordingly.
• Make business decisions based on supporting data, considering behavioural aspects like targets, incentives, and motivation.
• Recognize the significance of non-financial factors in the context of budgeting.

Investment Appraisal

• Estimate future net cash inflows and outflows from a project.
• Apply capital investment appraisal techniques (payback, ARR, NPV, and IRR).
• Understand the advantages and disadvantages of each technique.
• Make informed investment decisions based on supporting data.
• Recognize the significance of non-financial factors when evaluating investments.

Key Points to Note:

• Questions on discounted payback will not be set, so candidates do not need to focus on this specific technique.
• Questions involving a residual value of an investment at the end of a project will not be set, which means candidates should not expect questions that require calculation of such values.

Candidates are expected to apply these concepts to real-world scenarios and make decisions based on both financial and non-financial data. The syllabus emphasizes understanding not only the technical aspects but also the behavioral and ethical considerations in management accounting practices.