Unit title: Management Accounting: An Introduction (SCQF level 4)

Transcription

1 National Unit Specification General information Unit code: J1K1 44 Superclass: AK Publication date: December 2018 Source: Scottish Qualifications Authority Version: 02 Unit purpose The purpose of this unit is to provide learners with an introduction to Management Accounting techniques. It will allow learners to develop skills and techniques which will enable them to calculate gross wages, prepare job cost statements and prepare simple cash budgets. This unit is ideal for learners who are undertaking the subject for the first time and who wish to gain a basic knowledge of commonly used Management Accounting techniques. It would be suitable for those wishing to start their own business and provides an introduction to management accounting principles which can be developed further. On successful completion of this unit it would be recommended that learners progress to Management Accounting Systems at SCQF level 5. Outcomes On successful completion of the unit the learner will be able to: 1 Complete a gross pay summary from given business information. 2 Prepare a simple job cost statement. 3 Prepare a simple cash budget. Credit points and level 1 National Unit credit at SCQF level 4: (6 SCQF credit points at SCQF level 4) Unit code, Management Accounting: An Introduction (SCQF level 4) 1

2 National Unit Specification: General information (cont) Recommended entry to the unit Entry is at the discretion of the centre. Learners do not need any previous knowledge or experience of accounting but they would be expected to have basic competence in arithmetic/numeracy. Core Skills Achievement of this Unit gives automatic certification of the following Core Skills component: Core Skill component Critical Thinking at SCQF level 4 There are also opportunities to develop aspects of Core Skills which are highlighted in the Support Notes of this Unit specification. Context for delivery If this unit is delivered as part of a group award, it is recommended that it should be taught and assessed within the subject area of the group award to which it contributes. Equality and inclusion This unit specification has been designed to ensure that there are no unnecessary barriers to learning or assessment. The individual needs of learners should be taken into account when planning learning experiences, selecting assessment methods or considering alternative evidence. Further advice can be found on our website Unit code, Management Accounting: An Introduction (SCQF level 4) 2

3 National Unit Specification: Statement of standards Acceptable performance in this unit will be the satisfactory achievement of the standards set out in this part of the unit specification. All sections of the statement of standards are mandatory and cannot be altered without reference to SQA. Outcome 1 Complete a gross pay summary from given business information. Performance criteria (a) Calculate hours worked from completed authorised timesheets for employees and enter on a wages summary sheet (b) Identify overtime hours for employees at basic flat rate, time and a half, and double time and enter on a wages summary sheet (c) Calculate total gross wages for employees and enter on a wages summary sheet Outcome 2 Prepare a simple job cost statement. Performance criteria (a) (b) (c) Calculate prime cost, showing a breakdown of direct materials, labour and expenses, and enter on to a job cost statement Calculate factory overhead using provided overhead absorption rates and enter on to a job cost statement Calculate total cost, including administration overheads, and enter on to a job cost statement Outcome 3 Prepare a simple cash budget. Performance criteria (a) (b) (c) (d) Identify and enter the opening balance into a cash budget Calculate cash and credit sales revenue and enter into a cash budget for a three month period Calculate material, labour and other overhead expenses, including time delays, and enter into a cash budget for a three month period Calculate the closing balances for a cash budget for a three month period Unit code, Management Accounting: An Introduction (SCQF level 4) 3

4 National Unit Specification: Statement of standards (cont) Evidence requirements for this unit Evidence is required to demonstrate that learners have achieved all outcomes and performance criteria. Each assessment should take place under controlled conditions with access to pro forma documentation only, and could be carried out separately after the delivery of each outcome. Evidence for each outcome can be generated manually or using a spreadsheet (containing headings only and no formulae). Outcome 1 Learners are required to produce evidence in the form of a completed gross wages summary sheet for three employees. Learners should be provided with a completed time sheet for each employee, which should be authorised by a supervisor and should detail company rates of pay and overtime policy. Each employee should work different hours and be paid at different rates ie, flat rate, time and a half and double time. Learners should also be provided with a blank pro forma wages summary sheet, and the information from the time sheets should be used to complete the wages summary of gross pay for each employee and in total. The assessment will be closed-book and should last approximately 1 hour. Outcome 2 Learners are required to produce evidence in the form of a completed job cost statement, detailing prime cost, factory cost, administration cost and total cost. Learners should be provided with a blank pro forma job cost statement detailing the relevant headings, and should also be provided with overhead absorption rates based on labour hours. The costing statement should include one type of material and one type of labour cost. The assessment will be closed-book and should last approximately 1 hour. Outcome 3 Learners are required to produce evidence in the form of a completed three month cash budget statement, detailing opening balance, cash and credit sales revenue and expenses for material, labour and other overheads. Closing balances should be calculated for each month. Learners should be provided with a blank cash budget template with relevant headings only. The assessment will be closed-book and should last approximately 1 hour. Unit code, Management Accounting: An Introduction (SCQF level 4) 4

5 National Unit Support Notes Unit support notes are offered as guidance and are not mandatory. While the exact time allocated to this unit is at the discretion of the centre, the notional design length is 40 hours. Guidance on the content and context for this unit This unit an optional unit in the National Certificate in Business at SCQF level 4 and can also be taken as a freestanding unit. It aims to introduce learners to the basics of commonly used Management Accounting techniques. It is not necessary to have previous knowledge of Management Accounting to complete this unit. There are opportunities to progress on to the Management Accounting Systems SCQF level 5 unit. Guidance on approaches to delivery of this unit Each outcome for this unit is likely to be taught separately. It is possible to use IT for the delivery and assessment of this unit. However, for assessment purposes, any spreadsheet provided must contain no formulae and the same headings used if assessing manually. The emphasis of the unit should be on a learner-centred approach, where learners undertake practical activities which enable them to progress at their own pace. It is important to develop an understanding of the concepts and terms used within the unit. Formative tasks could be designed to be completed manually and/or on spreadsheets. Learners should be encouraged to complete tasks from a range of different types of companies eg, service, manufacturing, and to discuss the differences in approach where appropriate. For Outcome 1, tasks could be based on a range of different formats of time sheets, both manual and electronic. This will enable learners to develop an understanding of documentation from different companies and different layouts. Tasks should be practical in nature and learners should be encouraged to complete tasks from real life companies. A pro forma completed time sheet and a blank wages summary sheet, with headings only, should be provided to learners. The wages summary should show, for each employee and in total, the hours worked, the overtime hours and calculation, total gross pay and the totals should be cross checked. Outcome 2 should be practical in nature and learners should be encouraged to think of real life examples of the types of companies who would carry out job costing. Learners should be aware of the need to understand direct and indirect costs for materials, labour and expenses, and should become familiar will the typical layout of a job costing statement, for different types of companies. Overhead absorption rates based on labour hours, should be provided to learners but they should be familiar with the application of the rate to a job costing. They should also be aware of the breakdown of jobs and costs between factory and administration. Unit code, Management Accounting: An Introduction (SCQF level 4) 5

6 National Unit Support Notes (cont) Outcome 3 should introduce the importance of cash budgeting and how this is affected by timing, particularly emphasising the effect on accounts receivable and payable (accruals and prepayments). Learners should be provided with a pro forma template with headings only and, if a spreadsheet is used, no formulae must be provided. The information provided should consist of sales and production units, selling price and unit production cost, cash sales, credit sales and credit purchases timing, other receipts and payments (excluding capital items and depreciation) should include time delays. Guidance on approaches to assessment of this unit Evidence can be generated using different types of assessment. The following are suggestions only. There may be other methods that would be more suitable to learners. Centres are reminded that prior verification of centre-devised assessments would help to ensure that the national standard is being met. Where learners experience a range of assessment methods, this helps them to develop different skills that should be transferable to work or further and higher education. It is likely that assessment for each outcome would be carried out separately and would consist of a practical real-life task on given figures or on a case study which links the three tasks. Each assessment should take place under controlled, open-book conditions, with time being allowed for necessary remediation or re-assessment. If IT is used for assessment, a blank spreadsheet can be provided which should contain headings only, where appropriate, and no formulae. Opportunities for e-assessment E-assessment may be appropriate for some assessments in this unit. By e-assessment we mean assessment which is supported by Information and Communication Technology (ICT), such as e-testing or the use of e-portfolios or social software. Centres which wish to use e-assessment must ensure that the national standard is applied to all learner evidence and that conditions of assessment as specified in the evidence requirements are met, regardless of the mode of gathering evidence. The most up-to-date guidance on the use of e-assessment to support SQA s qualifications is available at Opportunities for developing Core and other essential skills Learners will carry out a number of numerical tasks in this unit. This presents opportunities for developing aspects of the Core Skill of Numeracy and Problem Solving. There are also good opportunities to develop aspects of the Core Skills of Communication and Problem Solving through discussion of budgets, wages calculations and preparing job cost statements. Unit code, Management Accounting: An Introduction (SCQF level 4) 6

7 National Unit Support Notes The Critical Thinking component of Problem Solving at SCQF level 4 is embedded in this unit. When a learner achieves the unit, their Core Skills profile will also be updated to include this component. Unit code, Management Accounting: An Introduction (SCQF level 4) 7

8 History of changes to unit Version Description of change Date 02 Core Skills Component Critical Thinking at SCQF level 4 embedded. 17/12/18 Scottish Qualifications Authority 2018 This publication may be reproduced in whole or in part for educational purposes provided that no profit is derived from reproduction and that, if reproduced in part, the source is acknowledged. Additional copies of this unit specification can be purchased from the Scottish Qualifications Authority. Please contact the Business Development and Customer Support team, telephone Unit code, Management Accounting: An Introduction (SCQF level 4) 8

9 General information for learners This section will help you decide whether this is the unit for you by explaining what the unit is about, what you should know or be able to do before you start, what you will need to do during the unit and opportunities for further learning and employment. This unit is designed to provide learners with an introduction to management accounting techniques. It will allow you to develop skills and techniques which will enable you to calculate gross wages; prepare simple job cost statements and prepare simple cash budgets. It is ideal for learners who are undertaking the subject for the first time and who wish to gain a basic knowledge of commonly used Management Accounting techniques. It would be suitable for those wishing to start their own business and provides an introduction to Management Accounting principles which can be developed further. The three main topics are gross wages calculations from time sheets, completing statements for job costing and preparing basic cash budgets. There will be three assessments, one for each outcome, and pro forma templates will be provided to help with completing the assessments. There are opportunities to develop Core Skills of Numeracy and Problem Solving in the unit. There are also opportunities to develop employability skills due to the practical and real life nature of the topics covered and the tasks completed. The unit is a good introduction to the study of cost and management accounting, and should allow learners to progress on to the Management Accounting Systems unit at SCQF level 5. The Critical Thinking component of Problem Solving at SCQF level 4 is embedded in this unit. When a learner achieves the unit, their Core Skills profile will also be updated to include this component. Unit code, Management Accounting: An Introduction (SCQF level 4) 9