<CLICK>

My name is David Forster and I am the F2 examiner

REVIEW OF PAST EXAMS

<CLICK>

Review of Past Paper-based F2 Exams (Dec 2007 to Dec 2008)

Two hour exam 50 Questions Paper-based exam is all MCQ Study Guide has 6 sections [A to F]

Paper F2 can be sat as a paper-based exam or as a computer-based exam. Either approach involves a two hour exam containing fifty compulsory questions. Forty of the questions are worth 2 marks each and ten questions are worth 1 mark each. The paper-based exam comprises only multiple choice questions [MCQ]. In the computer-based exam there are other types of Objective Testing questions for example, Number Entry and Multiple Response questions. The Study Guide comprises six sections labelled A to F. As these will often be referred to in this presentation, it may be useful to list the main headings . . . Section A : The Nature and purpose of Cost and Management Accounting Section B : Cost Classification, Behaviour and Purpose Section C : Business mathematics and Computer Spreadsheets Section D : Cost Accounting Techniques Section E : Budgeting and Standard Costing Section F : Short-term Decision-making Techniques <CLICK>

WHAT WAS DONE WELL?

<CLICK>

Review of Past Paper-based F2 Exams (Dec 2007 to Dec 2008)

Study Guide Sections A and B questions Study Guide Sections C2 [Statistics] and C3 [Spreadsheets] questions Study Guide Section D questions on:
Apportionment of overheads Job costing Process costing Service / operation costing

Questions set on Study Guide Sections A, B and most of C were answered well. The exception in Section C were the questions set on the topic of uncertainty. However it should be noted that Sections A, B and C have a much lower weighting in terms of overall marks than Sections D, E and F. This point is covered in much more detail later in this presentation. Section D of the Study Guide covers the cost accounting techniques and includes a large number of topics. Questions on the methods for the allocation and apportionment of overheads were answered well. Job, processing and service costing questions were generally well answered too. It was perhaps a little surprising that the process costing questions were included in this category. <CLICK>

Review of Past Paper-based F2 Exams (Dec 2007 to Dec 2008)

Study Guide Section E questions on:
Most aspects of budgeting Calculation of sales, materials and labour variances

Study Guide F questions on:

Cost-volume-profit analysis Relevant costs Single limiting factor analysis

Section E of the Study Guide covers budgeting and standard costing. Both calculation and non-calculation questions on budgeting were generally answered well. Probably fairly predictably, the calculation questions involving sales, material and labour variances seemed to cause few problems to the majority of candidates in these exams. Section F questions on break-even analysis and charts and related C-V-P topics, such as margin of safety and target profit, were generally answered well. Relevant cost questions too were generally answered well. The single limiting factor questions were also quite well done. <CLICK>.

WHAT WASNT DONE WELL?

<CLICK>

Review of Past Paper-based F2 Exams (Dec 2007 to Dec 2008)

All other Study Guide sections Specifically weak areas:
Dealing with uncertainty [C1] Under/over absorption of overheads [D3] Joint product valuation [D6] Calculation of overhead variances [E4] Written questions on variances [E4] Reconciliation of contributions [E5] Linear programming [F3]

The topics not listed in the previous section on What was done well should obviously all be listed under What wasnt done well. So what has been included in this list are the topics which were done badly rather those that were just below average in terms of performance. Most of the topics on this list were, it is suggested, fairly predictable. They are topics that Management Accounting students often find tricky. It was not surprising to find the topic of over or under absorption of overheads on the list. Nor too to find overhead variance calculations particularly on the fixed overheads. Written questions involving the meaning and interpretation of all variances were not as well answered as the calculation questions on variances. The reconciliation of budgeted and actual contributions seems to have caused problems to many candidates. There was a lot of uncertainty in terms of which of the given variances to include in the reconciliation and which to exclude. The Examiners Reports for December 2007 and June 2008 gave examples of these questions. Linear Programming questions have also been answered less well generally. Short multiple choice questions often try to test that candidates understand the techniques they use in solving Linear Programming problems. Therefore graphs are often given in the questions as there is insufficient time to expect candidates to be able to draw them in the 2.67 minutes allowed for a two-mark question. Joint product valuation questions were poorly done. This was the case particularly when the Sales value method was specified. Again this was not particularly surprising. The surprise on the list of topics answered less well was Uncertainty [Study Guide C1]. This is tested at a very basic level but still seems to t bl t th j it f did t P h did t

9
d

LESSONS LEARNED
<CLICK>

10

WHAT TO FOCUS ON?

<CLICK>

11

F2 Management Accounting

All topics in the Study Guide The pilot paper Examiners Reports

With 50 compulsory questions on the exam paper ALL sections of the Study Guide will be tested in EVERY exam. The pilot paper is still the best guide to candidates and lecturers alike. If the pilot paper is analysed into how many questions [and marks] relate to each of the six sections of the Study Guide then the weighting this gives was very, very close to the weighting that appeared in the three exams set in December 2007, June 2008 and December 2008. This weighting will apply for the next three paper-based exams too. The weighting in the computer-based exams is almost identical to the pilot paper. This analysis of the pilot paper would show for example that questions on Sections A, B and C of the Study Guide together would account for less than 30% of the marks. And questions relating to Sections D, E and F would account for more than 70%. The pilot paper is also a good indicator of the split between calculation and non-calculation questions that occurs in each paper-based exam. Each Examiners Report highlights three questions that were not wellanswered by candidates. The questions are reproduced in full in the reports These questions on key topics are selected to provide useful feedback to students, lecturers and publishers. There is clear evidence that these reports are not being given the appropriate attention that they should be given. The topic of Reconciliation of budgeted and actual contributions under marginal costing [Study Guide Section E(5)] has been highlighted in the December 2007 and June 2008 Examiners Reports and still the worst answered question in the December 2008 examination was on the same topic!

12

HOW TO IMPROVE?

<CLICK>

13

F2 Management Accounting
Be aware of the weighting given to the six sections in the Study Guide Teach topics properly Use some long questions, but also use Lots of Objective Testing [OT] questions OT questions in every lecture Make up new OT questions Mini tests of OT questions Emphasise that OT questions are NOT easy

As just explained, some Sections of the Study Guide have a higher weighting than others when it comes to the questions set in any exam. Students and lecturers should be aware of this in allocating the time they devote to different topics. Topics need to be taught properly that is in a traditional manner. However as the exams are 100% objective testing, it is suggested that this fact needs to be incorporated into the teaching and students preparation throughout the period of study. Are too many long [20 or 25 mark] style questions used? It is NOT advocated that no such questions are used, but on the other hand lots of objective testing practice is required in preparation for F2. It is recommended to lecturers that a few objective testing questions are incorporated into every lecture on every topic in order to show students how the topic could be examined. Short tests of MCQ should be used throughout courses. Lecturers are encouraged to make up new questions for such tests. Finally there is a misapprehension that MCQ are easier than the traditional longer questions. There are no marks for workings or method in MCQ, for example. It is also worth saying that the examining team spend a lot of time discussing the suitability of the distractors [the wrong answers] to MCQ . They are very carefully chosen. The fact that in the past three exams candidates have chosen the wrong answers to many questions illustrates this point.

14

FOCUS ON FUTURE EXAMS

<CLICK>

15

WHATS NEW?

<CLICK>

16

F2 Management Accounting

Nothing

There are no planned changes to the Study Guide other than very minor amendments to wording. There are no planned changes to the style or structure of the exam.

<CLICK>

17

WILL THINGS CHANGE?

<CLICK>

18

F2 Management Accounting

No Hopefully pass rates will rise

As already stated, there are no planned changes to the structure or style of the exam. The pilot paper mix will continue and if there are any unexpected changes they will be communicated widely well in advance.

It is hoped that as teaching becomes more focussed and candidates practise more objective testing style questions in preparation for the exam and that the pass rate for F2 will rise. <CLICK>

19

<CLICK>

20

<CLICK>

21

<CLICK>

22