ACCA F1 Accountant in Business

Transcription

1 ACCA F1 Accountant in Business Sample Study Note For exams in June2014 1

2 Lesco Group Limited, April 2015 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of Lesco Group Limited. 2

3 Sample Note Content: Product Summary... 4 Live online course timetable... 5 Main study note content [Total Pages: 67]... 6 Organization... 7 Parts within organization Roles & Functions within organization Teams Committees Please note: This is just the sample study note extracted from the main study note in your tuition study [This tuition study note is consistent in basic/super/gold package]. There would be more chapters in the main study note covering the whole ACCA syllabus. You can also take a look at the content within the main study note below: 3

4 Product Summary content Basic Super Gold Oxford Brookes BSc in Applied Accounting package package Package ACCA HD quality super tuition videos ACCA HD quality super revision videos ACCA Live online tuition(4sessions) ACCA Live online revision(14hours) ACCA Mock exams(with tutor mark) ACCA Tutor support ACCA Electronic study note ACCA Student online forum Pass Guarantee ACCA Final revision mock exam paper ACCA Super Live online session (20-30hours) ACCA Super Live online revision (Super 3 days) ACCA 1V1 Career Advice ACCA Extra exam techniques demonstration Live online mentoring 4

5 Live online course timetable Live session/revision for F123 5

6 Main study note content [Total Pages: 67] 6

7 Organization 7

8 1. Purpose of organization 1. What is organization? An organization would have these characteristics: A group of people with a common objective; Everybody would have their own responsibility(social arrangement); There would be rules existed to control employees performance. Eg, A group of people in the train is not an organization 2. Why organization? Having an organization we can work better! Overcoming limitations (physical and intelligent, or mental). Create Synergy :1 + 1 >2. Expertise Time saving division of labours. 8

9 2. Types of organization 1. Private sector (profit making organization) and public sector (non-profit making organization-npmo) Private sector Sole trader One person owns and runs the business. The sole trader and the business are legally the same entity and therefore the sole trader is personally liable for any business debts. Partnership Two or more persons owns and runs the business. The partners and the business are legally the same entity and therefore the partners are jointly liable for any business debts. Limited liability company Shareholders and a number of appointed directors own and run the business. A company is a legal entity in its own right, and therefore the shareholders only have limited liability for any business debts. Public sector (Run by government) (non-profit making organization-npmo) Public schools and education institutions; Hospitals; The Central Bank; The Army, Navy and the Air Force; The national social and security organisation 9

10 2. Non-governmental organization(ngos)(run by individual) (non-profitmakingorganziation) This is for the social benefit and that s why it s set up. This is not run by government but by individuals and so individuals need to raise money from the outside and this is very difficult. 10

11 3. Structure of organization Types of structures: The organization would be arranged in many ways: 1. Simple (Entrepreneurial) Structure Advantage: This is quick when decision is made. Disadvantage: if boss is away then the origination can t do anything. Boss Team 2. Functional Structure Advantage: it s cheap to run because there is just 1 department and it s good if you just own one/similar product. Disadvantage: if you have any products then it s not suitable. Boss Department1 Department2 11

12 3. Divisional Structure Advantage: more concentrate on customers and it s suitable for many products. Disadvantage: more costly Boss Dicision1 Division2 Dept1 Dept2 Dept1 Dept2 4. Matrix Structure Advantage: more flexible in decision making Disadvantage: more costly 12

13 Span of control This means number of people specifically reporting to their direct boss. Note: number of people below their direct boss is not span of control. This would determine either there would be a tall structure or a flat structure. Tall structure: you focus on the quality.(reduce span of control)(centralisation): This means lots of levels in the hierarchy (long Scalar chain). Flat structure: you focus on the effectiveness.(increase span of control) (Decentralisation) This means fewer levels in the hierarchy (short Scalar chain). But how to decide span of control? (Factors affecting span of control): 1. Workload Planning work (non-supervisory job) less span of control Decision making work (non-supervisory job) less span of control Control work(supervisory work)---can increase span of control 2. Competence 3. Style Control directive (task-focus): decrease span of control Delegation (people-focus): increase span of control. 4. Support If employees can help each other then you can increase span of control. 13

14 Models/theories of structure 1. Anthony hierarchy Roberts Anthony identified management activities, at three different levels: 1. Strategic: board of directors; (What to do: Market leader in education field) 2. Tactic: middle management;(detail what to do and How to do it) 3. Operational: front line workers. (Just do it) But a comment on this is not all employees within company would focus on how to do the work based on Strategy. And not everybody knows strategy within the compay and hence: 14

15 2. Mintzberg sorganisation configuration Mintzberg divides the organisation into 5 aspects: People know strategy: StrategicApex senior management Middleline middle managers Operatingcore employees directly involved in producing goods and services People not know strategy: Technostructure providing technical support about how to do it from tactic level. Supportstaff providing general supportlike public relations, legal consultancy, Canteen staff 15

16 Formal & Informal Structures The above structures we looked at are formal structures. And there would be informal structures as well in the organization. 16

17 Parts within organization There are basically 3 parts within an organization: 1. Functions 2. Teams 3. Committees 17

18 1. Roles & Functions within organization So why do we have roles and functions within organization? Well if the roles and functions can t add value to the organization, why do we keep them? So this is the concept behind PORTER S VALUE CHAIN. The five primary activities are: Inbound logistics (Inventory storage) Operations, (Add value) Outbound logistics, (Distribution) Marketing and sales (Advertising etc) After sale service. (installation; repairmentetc) The four secondary (support) activities are: Firm infrastructure (general management; Accounting & Finance) Human Resource Management, (Recruiting & Training staff) Technology Development(R&D on product & Process) 18

19 Procurement.(selecting suppliers & purchasing strategy & Capital investment) Different departments: The purchasing department would deal with Inbound logistics (Inventory storage) Procurement.(selecting suppliers & purchasing strategy & Capital investment) When determining purchasing strategy we can consider the purchasing mix: 1. Quantity 2. Quality 3. Price 4. Delivery The production department deals with operation of materials and turns those into finished goods. They aim at efficiency during the operation process. Outbound logistics(distribution) is normally outsourced by company to 3 rd party to distribute goods on behalf of us. 19

20 The marketing department would deal with marketing and sale bits. Marketing means to turn people into potential buyers by launching lots of campaigns. Sales means to turn potential buyers into the real buyers. Normally it s referring to direct sales. How to be able to successfully market our products would depend on marketing mix. Marketing mix for tangible products: 4P s(why customer would come and buy your products?) Product: Because your product is good and unique so they buy them. Price: Because your products offer a very low price and hence customers buy them. Price skimming: Aim at small group of people and charge them at a high price for a small amount of goods Low risks: 1, we don't have to develop too many products which costs us that much 2, we can drop the price down as we see fit. 3, High barrier to entry, Eg, technology 20 Price penetration: Aim at large group of people and charge them at a low price for a large amount of goods High risks

21 1, we have to develop too many products which costs us that much 2, we can t drop the price down easily as we see fit. 3, No barrier to entry Place: Because your product place is convenient for the customer so they buy them. Eg, you distribute your products directly to customers etc, Eg, You give the right to Retailer and customers can buy from retailer directly which would be convenient for them. Promotion: Because there s an attractive promotion for your products and hence customer buy them. Marketing mix for Service: (Add another 3P s): People: Who delivers service would have an impact on whether your product would be successfully sold. Processes: by which the service is delivered: watch online? Physical evidence of the service: Small gifts? Accounting & Finance department Accountants do lots of things: Financial accounting: prepare Financial statements for different stakeholders. Step1: transaction and source document 21 Step2: books of prime entry

22 Step3: ledger & balance off the account Step4: trial balance Step5: year end adjustment journal Step6: FS(SOFP & SOCI) Accounting standards develops from IAS to IFRS. Development process: Draft Proposal Working group to have some suggestions Publish discussion document-to allow people see what you are doing Public comment Exposure draft (like a practice but not compulsory) IFRS 22

23 Management accounting: Planning: Plan future activities, budget Decision making: Whether to set up company and what further investment that company may try to make Control: Variance-Compare results of operation with expected(meet sales/ cost target?) Financial management: investment; financing & dividend policy Tax issues: Pay tax Tax avoidance: legal Tax evasion: illegal 23

24 2. Teams There are 2 characteristics of teams: Complementary skills-this means members within the team would help each other. Mutually accountable-this means members would hold accountable with each other, for example, if a team is to design one product, there is no point that Mary within the team would say to Tony within the team that, you design and I leave. 24

25 Team s Roles: (Belbin s team roles theory) Belbin said there are 3 types roles within a team: thinking, people and action oriented role. Types Thinking oriented: Plant: Only Provide Creative Ideas Monitor-Evaluator: Specialist People oriented: Co-coordinator: overall leader Team worker: supportive not competitive Resource investigator Actions oriented: Shaper: keep teams moving Implementer: manufacturing actual product Completer-finisher: look for errors Roles Solve difficult problems Assessing the contributions of others. Only specialize in his area but can t see the whole picture CEO/chairman Giving support to others People who always exploit opportunities Middle line managers Front line workers Quality checking Dept; internal auditors 25

26 There are 4 types of teams: (MD, MS, SM, Virtual) Multi-discipline teams: this is a typical team with different people with different skills and knowledge working together. Multi-skills teams: this means one person within the team can finish the whole project. This type of team is flexible meaning each of them can finish the project on their own but the disadvantage of this would be TOO EXPENSIVE! Self-managed teams: like professionals within the team like lecturers, although they are within the team but they would have high level of autonomy of deciding how to do it. Virtual teams: this means members within a team would communicate with each other using WEBINAR like Skype etc and this is through virtual communication. 26

27 Tuckman s Development of the team theory 1. Forming Just several members get together and know each other. No leader is in this stage. 2. Storming In this stage conflict among members exists. Members may disagree with each other but company is growing. 3. Norming Members have a common goal with meetings. Members accept each other. Company is growing very fast. 4. Performing Get the tasks done. Leader tells you what do to and you know how to do it. 5. Dorming This means members doing the same things over and over again without thinking and hence it s hard for them to provide new thinking. 6. Mourning/ Adjourning. Members leave. Mourning Members start a new project. Adjourning 27

28 3. Committees What Groups of members to solve complicated issues. 1. They have functions. 2. They stand for different stakeholder s interest. This is between functions and teams. Function specializes in each function like accounting etc. Teams are effective. There are 3 types of committees: Level: Executive committees Management committees Board of directors Quality control committee Time Permanent committees Temporary committees(ad hoc committee) Overall & Sub Joint committee Sub committee Quality control committee Like material, human and distribution committee under the overall quality control committee 28

29 People: Committee chair Should be impartial and punctual and regular in attendance at meetings. Committee secretary should: Before meeting: prepare the date, place for meeting. During meeting: Help chair documenting notes. After meeting: prepare minutes, like decision made by the committee. How to use committees successfully? Competence There are minimum number member attending the meeting, like 4 out of 7. Clear authority given 29