CV and HN unit specifications

Aveen Duffield
Irvine
Tel: 07742 554 618 Email: aveen_duffield@hotmail.com

Personal Profile

 A reliable and hardworking individual who offers exemplary organisation and time management skills alongside a keen
eye for detail and meticulous approach to ensuring the accuracy of all work

 One who is quick and keen to learn new skills, adapting well to changing business needs and capable of working efficiently
within pressurised and fast-paced environments

 An articulate and confident professional able to liaise with all levels of colleague and external partner, building positive
working relationships which add value to any organisation

Education & Qualifications

James Watt College HND: Accounts 2011 - Present
Key Modules:
Financial Reporting Management Accounting Business Taxation Company Law

James Watt College HNC: Accounts (Grade A) 2012
University of the West of Scotland Post Graduate Certificate: Multimedia & Web Authoring 2009
University of the West of Scotland BA: Psychology & Sociology 2005
James Watt College HND: Social Sciences 2002
Kilmarnock College Highers 2001
Kilmarnock College NC: Information Technology 1996
St Michaels Academy Standards Grades 1995

Employment History

2004 - 2005 South Ayrshire Council Adult Education Tutor
 Carried out a number of temporary contracts providing adult education computing skills training on behalf of this local
authority
 Held responsibility for the design and delivery of classroom based lessons targeted at individuals ranging in level of ability
 Created lesson plans and tailored them according to student needs
 Delivered training in email, internet, MS Word and MS Excel applications
 Produced innovative and effective course literature and evaluated its on-going progress and success
 Maintained an up to date and in-depth knowledge of relevant subject matter

1996 - 2002 “The Gate”, Kilmarnock Cook
 Worked as part of a team to produce high quality food from an extensive menu in a timely manner
 Maintained food hygiene and health & safety standards in all operations
 Performed all required preparation work at the start of the day as well as cooking duties during service
 Maintained stock levels and ordered supplies as and when required
 Developed solid working relationships with all colleagues, suppliers and regular customers

Additional Information

2005 - 2008 Caring for ill parents
 Provided care in response to all needs caused by serious illness including preparing meals, cleaning and maintaining the
home environment, and assisting with mobility needs

Languages: Basic French
Driving Licence: Full Clean UK

Key Skills & Competencies

Communication & Presentation - possesses a high level of verbal and written communication with the ability to operate
effectively across all levels of colleague. Confident in close consultation and advisory scenarios

Accuracy & Numeracy - focused, methodical and diligent in the handling of large volumes of confidential information and is
confident processing all forms of numerical work within a corporate environment

Organisation - able to apply a thorough attention to detail ensuring successful completion of tasks on time and to budget.
Able to see projects through from inception to completion

Troubleshooting - able to anticipate any issues which may arise and respond swiftly to those that do showing a calm and
diplomatic approach. Ensures problems are dealt with in a prompt manner and with a satisfactory outcome for all parties

Relationship Management - quickly builds trust and credibility with all partners to facilitate the smooth running of business
operations

IT Skills - proficient with Sage Line 50, Sage Payroll, and all MS Office applications including Word, Excel, Access & PowerPoint

References: available on request

Higher National Unit specification

General information for centres

Unit title: Using Financial Accounting Software

Unit code: F7JP 34

Unit purpose: This Unit is designed to enable candidates to use a commercial accounting software
package to process financial transactions and to prepare accounting reports for a small business.

This Unit is primarily intended for candidates who expect to take up a career or further study in
accounting and/or financial administration. It is also relevant for candidates who wish to extend their
manual book-keeping skills to those of a computerised accounting system and to those with appropriate
work experience who wish to formalise their skills.

On completion of the Unit the candidate should be able to:

1 Use an accounting software package to set up and amend accounting records
2 Use an accounting software package to process financial transactions
3 Use an accounting software package to incorporate year-end adjustments and produce final accounts
for a small business
4 Use an accounting software package to produce a range of accounting reports

Credit points and level: 1 HN credit at SCQF level 7: (8 SCQF credit points at SCQF level 7*)
*SCQF credit points are used to allocate credit to qualifications in the Scottish Credit and Qualifications
Framework (SCQF). Each qualification in the Framework is allocated a number of SCQF credit points at an SCQF
level. There are 12 SCQF levels, ranging from Access 1 to Doctorates.

Recommended prior knowledge and skills: Access to this Unit is at the discretion of the
centre. However, candidates would normally be expected to have some prior knowledge of manual book-
keeping. This could be demonstrated by achievement of the HN Unit F7JV 34: Recording Financial
Information or similar qualification at SCQF level 6/7 prior to undertaking this Unit.

Core Skills: Achievement of this Unit gives automatic certification of the following:
Providing/Creating Information at SCQF level 5

HN Unit (F7JP 34): Using Financial Accounting Software 1

General information for centres (cont)

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.

Assessment: This Unit could be assessed by a practical assignment that covers all Outcomes.
Alternatively, it could be assessed by four separate practical assignments.

An exemplar instrument of assessment and marking guidelines have been produced to show the national
standard of achievement required at SQCF level 7.

Since the Providing/Creating component of the Information Communication Technology Core Skill at
SCQF level 5 is embedded in this Unit, it is strongly recommended that you follow the assessment
guidelines given. If you wish to use a different assessment model, you should seek prior verification of
the assessment instrument(s) you intend to use to ensure that the Core Skill is still covered.


Higher National Unit specification: statement of standards


Unit code: F7JP 34
The sections of the Unit stating the Outcomes, Knowledge and/or Skills, and Evidence Requirements are
mandatory.

Outcome 1
Use an accounting software package to set up and amend accounting records

Knowledge and/or Skills
Customer and supplier records
Nominal ledger accounts
Back up procedures

Evidence Requirements
Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills by showing that
they can:

Set up two new customer accounts and two new supplier accounts.
Set up two new nominal ledger accounts and incorporate these into the appropriate section of the
final account structure. The two new nominal accounts should come from: new asset, new liability,
new source of income or new expense account.
Amend two existing customer, two existing supplier and two existing nominal ledger accounts.
Back up data files securely.

The evidence should be generated under open book supervised conditions.

Evidence must be accurate within a tolerance of one error.

Assessment Guidelines

It is recommended that the assessment of this Outcome be completed within half an hour.

This Outcome may be assessed separately or combined with the assessment of other Outcomes.
Assessment Guidelines for a single assessment covering all Outcomes is given after Outcome 4.


Higher National Unit specification: statement of standards (cont)


Outcome 2
Use an accounting software package to process financial transactions

VAT categories
Customer invoices and credit notes
Supplier invoices and credit notes
Purchase of fixed assets
Cheques issued and received
Discount allowed and received
Cash receipts and cash payments
Recurring entries
Error correction
Bad debt write-off
Back up procedures

they can:

Process four sales invoices, four purchase invoices, two sales credit notes, two purchase credit
notes. Transactions to include VAT standard rated, zero rated and exempt supplies.
Process cheques issued to include two cheques to creditors, four cheques for payment of expenses
and two cheques for purchase of fixed assets. The cheques to creditors should be for payment of
amount due after returns and discounts have been deducted. Transactions to include standard rated,
zero rated and exempt supplies and transactions outwith the scope of VAT.
Process cheques received to include two cheques from debtors, two cheques for other income and
one loan cheque. Cheques from debtors should be for receipt of amount due after returns and
discount have been deducted.
Process two transactions incorporating discount allowed and two transactions incorporating
discount received.
Process three cash receipts and three cash payments. Transactions to include standard rated, zero
rated and exempt supplies and transactions outwith the scope of VAT.
Set up and process two recurring entries for direct debits or standing orders.
Write off a debtor‟s account as a bad debt.
Record details of two new fixed assets in the fixed asset register — including one straight line
depreciation and one reducing balance depreciation.
Correct two errors using the error correction facilities of the software package.
Back up data files securely.

The evidence should be generated under open-book supervised conditions.

Evidence must be accurate within a tolerance of four errors.




It is recommended that the assessment of this Outcome be completed within one and a half hours.


Outcome 3
Use an accounting software package to incorporate year-end adjustments and produce final accounts for
a small business

Accruals
Prepayments
Depreciation
Stock journals
Profit and loss account
Balance sheet
Back-up procedures

they can:

Set up and process year-end adjustments for two accrued expenses and two prepaid expenses
Set up and process two charges for depreciation of fixed assets (one straight line, one reducing
balance)
Process the appropriate journal entries for opening and closing stock values
Produce and print final accounts for a small business — profit and loss account and balance sheet
Back up data files securely


Evidence must be accurate within a tolerance of one error.







Outcome 4
Use an accounting software package to produce a range of accounting reports

Trial Balance
Audit Trail
VAT Return
Other reports

they can:

Produce and print a Trial Balance, an Audit Trail, a VAT Return, plus two additional reports from
the following:
— Aged Debtor Analysis
— Debtor Reminder Letter
— Customer Address List
— Supplier Address List
— Nominal Ledger Code List
— Fixed Asset List

The evidence should be generated under open book supervised conditions. The reports should be printed
without error.



This Outcome may be assessed separately or combined with the assessment of other Outcomes. Further
guidance is given below.



Assessment Guidelines for the Unit
These guidelines relate to a single assessment that covers all Outcomes
A holistic approach to assessment may be adopted with all Outcomes being assessed in a single open
book supervised assessment. Candidates could have access to software manuals, help menus and any
other course materials during the assessment.

It is recommended that the combined assessment of the four Outcomes be completed within three hours.

Candidates could be provided with a set of data files relating to a business. This data might consist of a
number of customer accounts and a number of supplier accounts as well as a number of nominal ledger
accounts already set up. Opening balances from a previous month could be included in debtor and
creditor accounts. In addition the final account structure could already be set up within the nominal
ledger of the software package.

Candidates could then be given financial transactions, covering the Knowledge and/or Skills items and
Evidence Requirements, for one month to process. The transactions would require candidates to open up
some new customer accounts, some new supplier accounts and some new nominal ledger accounts.
Where new nominal ledger accounts are opened up, these would have to be entered into the final account
structure within the nominal ledger so that these account balances are included in the final accounts
produced at the end of the month. The candidates would also have to amend some existing customer and
supplier accounts — for example change of address, phone number, contact name, credit limit, etc. Some
nominal ledger accounts would also have to be amended — for example, change of account name.

Later in the assessment the candidate would be required to print a range of reports. To test the
candidate‟s understanding they could be asked, for example, to produce a report showing customer
names and addresses but the report should only include those new customers that the candidate had set
up or those existing customers whose details the candidate had amended (as opposed to including every
customer — this also has the advantage of cutting down on the amount of paper used).

The financial transactions could be batched — eg invoices sent out last month; invoices received last
month; credit notes sent out; credit notes received; cheques issued; cheques received; cash receipts
issued; cash receipts received and other transactions. Invoices and credit notes should cover the range of
VAT categories outlined in Knowledge and/or Skills and Evidence Requirements. The amount of
cheques issued to creditors and received from debtors should be the appropriate amount after the
application of a credit note and of a cash discount so that the candidate has to process discounts allowed
and received.

Two of the cheques issued could be for the purchase of new fixed assets. Candidates should differentiate
between the gross and net amount of the asset when entering it in the fixed asset register. Thereafter, one
asset could be depreciated by the straight line method and one by the reducing balance method.

Candidates could also set up, for example, recurring entries for the payment of direct debits and standing
orders. One of the expenses being paid by direct debit could be for the new expense account that was set
up in the nominal ledger — this ensures that the candidate has to set up the appropriate expense account
and then set up the recurring entry against that account. Candidates could also write off a debtor account
and could process the journal entry to record the closing stock valuation at the month end.



Assessment Guidelines for the Unit (where a single assessment covers all Outcomes)
Candidates could be informed at the end of the assessment instrument that two of the transactions
entered earlier in the assessment have errors and the candidate could be instructed to correct the errors
using the facilities available in the software package.

Candidates could be given a valuation for the closing stock at the end of the month and could input the
necessary journal entries to include this in the month-end accounts. Candidates could also adjust
expenses for prepayments and accruals and they could post the necessary entries to depreciate fixed
assets.

Where a candidate produces evidence where all the month‟s transactions have been processed correctly
but the month-end procedures have been done incorrectly then the candidate would not be expected to re-
sit the entire assessment. The candidate would only be required to re-sit Outcome 3. In this case, the
candidate could be given a set of data that included all the month‟s transactions and the candidate would
only have to carry out the month-end procedures and produce the final accounts.


Administrative Information

Unit code: F7JP 34


Superclass category: CD

Original date of publication: August 2010

Version: 01

History of changes:

Version Description of change Date

Source: SQA

© Scottish Qualifications Authority 2010

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.

SQA acknowledges the valuable contribution that Scotland‟s colleges have made to the development of
Higher National qualifications.

Additional copies of this Unit specification can be purchased from the Scottish Qualifications Authority.
Please contact the Customer Contact Centre for further details, telephone 0845 279 1000.


Higher National Unit specification: support notes

This part of the Unit specification is offered as guidance. The support notes 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
accounting and/or financial administration. It is also relevant to those with appropriate work experience
and who wish to formalise their book-keeping skills.

For those candidates who successfully achieve this Unit as part of the HNC/HND Accounting Group
Award, there may be opportunities to gain exemptions from a number of professional accounting bodies.
Centres should contact the relevant professional bodies to ascertain their current exemption policies.

This Unit is designed to enable candidates to use a commercial accounting software package to process
financial transactions and to prepare accounting reports for a small business.

Outcome 1

Candidates should be able to maintain the sales ledger, purchase ledger and nominal ledger of a business
using an accounting software package. This would include amending details of existing accounts and
setting up new accounts in each of the ledgers. Candidates should be familiar with the Chart of Accounts
(the framework for the Final Accounts) within the package. Candidates should also be aware of the
allocation of code number to accounts and the significance of the different ranges of account numbers —
eg account numbers allocated to fixed assets, account numbers allocated to current assets, etc.
Candidates should understand the need to amend the Chart of Accounts when setting up new nominal
ledger accounts so that the new accounts would be incorporated into the Final Accounts framework in
the package. Candidates should be familiar with the range of reports associated with each of the ledgers
and should be encouraged to investigate all available reports and the use to which they could be put.

Outcome 2

Candidates should be able to process all the standard financial transactions that occur regularly in a
business. It would be normal to batch transactions for processing. Candidates should be familiar with the
use of batches and batch totals to help ensure accuracy in posting transactions. Candidates should be
encouraged to produce day books and a Trial Balance after each batch that is processed. Candidates
should be able to explain which balances in the Trial Balances will change as a result of the batch of
documents processed and to check these changes against their batch totals. Candidates should be
encouraged to back up data files after each batch that is processed. Candidates should print off the Audit
Trail or refer to it on-screen and be able to recognise the way in which the package details each
transaction that has been processed. Again, candidates should be encouraged to investigate all available
reports and the use to which they could be put.


Higher National Unit specification: support notes (cont)

Centres could provide candidates with sets of data which can be used to practise each of the batches that
have to be processed — eg sales invoices, purchases invoices, sales credits, etc. For example, centres
could provide candidates with data relating to receipts from debtors. This could include both cash
receipts and cheques received. The batch could include part payments of amounts due; full payment of
accounts; full payment where there has also been a credit note issued to the customer and full payment
where there is both a credit note issued to the customer and the customer is to be allowed a discount for
prompt payment. On completion of the batch the candidate should produce the relevant day books and
check the totals in the day books against their batch totals. The candidate should also produce a Trial
Balance and explain which balances have changed as a result of processing this batch of cheques.

Similarly, centres could provide candidates with sets of data relating to debtors for, say, six months.
Some debts would be current, some one month overdue, some two months overdue, etc. Candidates
could be asked to identify those debtors who should be considered as possible bad debts; those who
should receive a “mild” reminder letter; those who should be sent a “stronger” reminder letter, etc.
Candidates should also be familiar with the way in which an entire account can be written off as a bad
debt or, alternatively, an individual invoice can be written off.

When processing payments for expenses and for fixed asset purchases, candidates should use the
package to differentiate between data which contains gross amounts and data which contain net amounts
and the facilities within the package for converting gross amounts to net amounts when appropriate.
Candidates should be aware that the net amount should be entered in the Fixed Asset Register and not
the gross amount.

Candidates should be familiar with the VAT codes used within the package and their significance in
compilation of the VAT return.

After every batch that is processed, candidates should back-up data files securely.

Outcome 3

Candidates should be familiar with the distinction between setting up accruals and prepayments and
actually processing them at the month-end. Similarly, candidates should be familiar with the distinction
between setting an asset up in the Fixed Asset Register and then processing the depreciation at the end of
the month. When setting up assets in the Fixed Asset Register candidates would again be expected to
understand the coding system adopted by the software package — eg the code for depreciation of an
asset as shown in the Profit and Loss Account and the code for the depreciation as shown on the Balance
Sheet. Candidates should be able to prepare journal entries to charge the opening stock to the cost of
sales in the Trading Account and to reduce the cost of sales by the value of the closing stock at the end of
the month. Candidates should back-up data files securely.

Outcome 4

Throughout the Unit candidates should be encouraged to investigate the range of reports available and
the uses to which these reports can be put within the business.




Guidance on the delivery and assessment of this Unit
This Unit is likely to form part of a Group Award designed to provide candidates with the knowledge
and skills for further study or employment within an accounting environment.

Where this Unit is being delivered as part of the HNC/HND Accounting Group Award it is
recommended that the Unit be delivered towards the beginning of the Group Award following the HN
Unit F7JV 34: Recording Financial Information. This means that candidates will be able to understand
what the accounting package does when processing the batches of data and to appreciate some of the
advantages of using a software package rather than manual processing of financial transactions.

It is recommended that the assessment is carried out in one single assessment which covers all four
Outcomes. However, the Outcomes could be assessed separately or alternatively, Outcomes 1 and 2
could be combined into a single assessment, and Outcomes 3 and 4 could be combined into another
single assessment.

All evidence should be produced under open-book supervised conditions.

During the delivery of this Unit it is recommended that candidates be made aware of the existence of
both UK Generally Accepted Accounting Principles (UK GAAP) and International Accounting
Standards (IAS) and the main differences in presentation of financial statements and terminology be
brought to their attention.

Opportunities for developing Core Skills
The delivery and assessment of this Unit may contribute towards the Core Skill Information and
Communication Technology at SCQF level 5. The Core Skill component Providing/Creating Information
at SCQF level 5 is embedded in this Unit. Throughout all four Outcomes of the Unit, candidates apply a
wide range of IT skills related to performing IT operations, processing information, accessing
information and keeping information safe.

Open learning
This Unit could be delivered by distance learning. However, it would require planning by the centre to
ensure the authenticity of candidate evidence. Arrangements would have to be made to ensure that
evidence is generated under the assessment conditions specified for each Outcome.

To keep the administrative burden to a minimum, it is recommended that the assessments of Outcomes
are combined for distance learning candidates.

Further advice can be found on SQA‟s website www.sqa.org.uk.

Disabled candidates and/or those with additional support needs
The additional support needs of individual candidates should be taken into account when planning
learning experiences, selecting assessment instruments, or considering whether any reasonable
adjustments may be required. Further advice can be found on our website
www.sqa.org.uk/assessmentarrangements.


General information for candidates

This Unit is designed to enable you to process financial transactions using a commercial accounting
software package. You may already be familiar with the double entry book-keeping system and be able
to post business transactions manually. This Unit enables you to process these same transactions but
using a software package rather than posting manually.

The Unit has four main areas, each the subject of a separate Outcome.

In Outcome 1 you will look at the three main ledgers in a book-keeping system — the Sales Ledger
(Customer records); the Purchase Ledger (Supplier records) and the Nominal Ledger (all other assets,
liabilities, expenses and income). You will learn how to set up new records as well as how to amend
existing records. You will learn the coding system used within the accounting software package and you
will learn how to amend the Final Accounts Structure when you introduce new accounts into the nominal
ledger. You will become familiar with a range of reports relating to each of these ledgers. You will learn
how to back up data files in order to securely store the data.

In Outcome 2 you will learn how to process the major financial transactions that occur on a daily basis in
most small to medium sized businesses. These will include the processing of sales and purchase
invoices; sales and purchase credit notes; cheques issued and received and cash receipts issued and
received. You will learn how data is batched and batch totals are used for checking purposes. You will
also learn how enter fixed assets in a Fixed Asset Register; how to set up and process recurring entries
through the bank account — for standing orders and direct debits and you will learn how to write off a
debt as a bad debt. You will also learn how to analyse debts by age and how to „chase‟ debts by sending
out appropriate letters to overdue debtors. You will become familiar with a range of reports relating to
each of batches that you have processed — including day books; the trial balance and the audit trail. You
will learn how to back up data files in order to securely store the data.

In Outcome 3 you will learn how to set up and process the month-end adjustments and then produce the
final accounts for the business — the Profit and Loss Account and the Balance Sheet. By processing
month-end adjustments for accruals, prepayments and depreciation and by preparing stock journals, you
will then be able to produce final accounts that give a true and fair view of the profit earned by or the
loss incurred by the business. You will normally do this for one month but you will also produce figures
for the year to date.

In Outcome 4 you will learn how to produce a variety of reports for a business including Customer
Reports and Supplier Reports as well as other reports such as VAT Return; Trial Balance; Audit Trail;
Day Books and Letters.

This Unit may be assessed by one practical assignment which covers all the Outcomes or each Outcome
may be assessed separately. The assessments will be carried out under open book supervised conditions.
This means that you will be able to bring with you to the assessment any software manual or other notes
or teaching materials. You may also access help menus during the assessment.

You will have opportunities to develop the Core Skill of Information Technology in this Unit.
Achievement of this Unit gives automatic certification of Providing/Creating Information at SCQF level
5.




Unit title: Preparing Final Accounts

Unit code: F7JT 34

Unit purpose: This Unit is designed to enable candidates to prepare final accounts for a range of
business organisations — sole traders, partnerships and companies. These organisations can be either
traders or manufacturing concerns. Candidates will also prepare cash flow statements and analyse
accounting statements using appropriate accounting ratios for a limited company.

accounting and/or financial administration. It is also relevant to those with appropriate work
experience who wish to formalise their financial accounting skills.

On completion of the Unit candidates should be able to:

1 Prepare final accounts for business organisations
2 Prepare final accounts, for a sole trader, from incomplete records
3 Prepare a cash flow statement for a limited company
4 Analyse the final accounts of a limited company using accounting ratios

Credit points and level: 2 HN Credits at SCQF level 7: (16 SCQF credit points at SCQF
level 7*)

Framework (SCQF). Each qualification in the Framework is allocated a number of SCQF credit points at an
SCQF level. There are 12 SCQF levels, ranging from Access 1 to Doctorates.
.
Recommended prior knowledge and skills: Access to this Unit is at the discretion of
the centre. However, candidates would normally be expected to have some prior knowledge of book-
keeping. This could be demonstrated by achievement of the HN Unit F7JV 34: Recording Financial
Information or similar qualification at SCQF level 6/7 prior to undertaking this Unit.

Core Skills: Achievement of this Unit gives automatic certification of the following:
Using Number at SCQF level 5

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.

HN Unit (F7JT 34): Preparing Final Accounts 1


Assessment: This Unit could be assessed by four separate assessments. However, it is
recommended that Outcomes 3 and 4 be assessed together.

An exemplar instrument of assessment and marking guidelines have been produced to show the
national standard of achievement required at SCQF level 7.

Since the Using Number component of the Numeracy Core Skill at SCQF level 5 is embedded in this
Unit, it is strongly recommended that you follow the assessment guidelines given. If you wish to use
a different assessment model, you should seek prior moderation of the assessment instrument(s) you
intend to use to ensure that the Core Skill is still covered.




Unit code: F7JT 34
The sections of the Unit stating the Outcomes, Knowledge and/or Skills, and Evidence Requirements
are mandatory.

Outcome 1
Prepare final accounts for business organisations

Business organisations
Profit and loss accounts
Balance sheets
Adjustments to the final accounts

Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills by showing
that they can:

Prepare a profit and loss account and balance sheet, from a year end trial balance, for either a
partnership or limited company operating as a trader or manufacturer.
Incorporate a minimum of eight different year end adjustments (appropriate to the type of
business) into the accounts, from the following: straight line depreciation, reducing balance
depreciation, bad debts, allowance for bad debts, accruals, prepayments, closing stock,
dividends, debenture interest, corporation tax, transfer to reserve, drawings, interest on capital,
interest on drawings, partnership salaries.

The evidence should be generated under supervised conditions with access restricted to a pro forma
layout for the relevant set of final accounts only.

The figures must be accurate within a tolerance of three arithmetic or computational errors with a
maximum of three errors of principle.

It is recommended that the assessment of this Outcome be completed within one and a half hours.
The assessment should be presented as a trial balance, with a minimum of eight year end adjustments,
for either a partnership or limited company (for internal use) operating as either a trader or
manufacturer. From this information candidates should prepare a profit and loss account and balance
sheet.

It is strongly recommended that a different type of business organisation be used each time the
Outcome is assessed.




Outcome 2
Prepare final accounts, for a sole trader, from incomplete records

Knowledge and/or skills

Opening balance sheet/statement of affairs
Receipts and payments
Revenues and expenses
Profit and loss account and balance sheet

Evidence requirements

that they can:

Prepare an opening balance sheet/statement of affairs for a sole trader
Prepare working notes which demonstrate the conversion of receipts and payments into revenue
and expenses for a minimum of six items
Deduce a minimum of one missing figure
Prepare a profit and loss account and balance sheet for a sole trader

The evidence should be generated under supervised conditions with access restricted to a pro forma
layout for final accounts only.

The figures must be accurate within a tolerance of two arithmetic or computational errors with a
maximum of two errors of principle.

Assessment guidelines

It is recommended that the assessment of this Outcome be completed within one hour. The
assessment could be presented as a case study, detailing incomplete accounting information, as well
as a range of notes. From this information candidates should prepare a profit and loss account and
balance sheet for a sole trader.




Outcome 3
Prepare a cash flow statement for a limited company


Cash flow statements
Depreciation and disposal of fixed assets


that they can:

Prepare a cash flow statement, from the final accounts for two consecutive years, of a limited
company
Show the correct treatment of depreciation and fixed asset disposal


The figures must be accurate within a tolerance of two arithmetic or computational errors with a
maximum of one error of principle.


It is recommended that the assessment of this Outcome be combined with Outcome 4 and be
completed within three hours. Alternatively, if Outcome 3 is assessed separately, it is recommended
that the assessment be completed within one hour. The assessment could be presented as a case study
where the final accounts of two consecutive years of a limited company are presented along with two
notes to the accounts (disposals of assets). From this information candidates should produce a cash
flow statement.




Outcome 4
Analyse the final accounts of a limited company using accounting ratios.


Accounting ratios
Analysis of final accounts

that they can:

Prepare working notes which demonstrate the calculation of the following accounting ratios:
gross margin; expenses to turnover; net margin; return on capital employed; earnings per share;
dividend cover; current ratio; acid test ratio; stock turnover; debtor turnover; creditor turnover;
fixed asset turnover and gearing ratio, for a limited company.
Analyse the results and explain the significance of each ratio calculated on the company’s
financial position.


The ratio calculations must be accurate within a tolerance of two arithmetic or computational errors
with a maximum of one error of principle. The candidate should analyse the ratios and comment on
the change in the ratio giving at least one reason for the change.


It is recommended that the assessment of this Outcome be combined with Outcome 3 and be
completed within three hours. Alternatively, if Outcome 4 is assessed separately, it is recommended
that the assessment be completed within two hours. The assessment could take the form of a case
study where the final accounts, of a limited company, for two consecutive years, are presented. From
this information the candidates could calculate the accounting ratios and, from the results, analyse the
financial position of the organisation.



Unit code: F7JT 34


Superclass category: AK


Version: 01

History of changes:


Source: SQA


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.

SQA acknowledges the valuable contribution that Scotland’s colleges have made to the development
of Higher National qualifications.

Additional copies of this Unit specification can be purchased from the Scottish Qualifications
Authority. Please contact the Customer Contact Centre for further details, telephone 0845 279 1000.




While the exact time allocated to this Unit is at the discretion of the centre, the notional design length
is 80 hours.

accounting and/or financial administration. It is designed to enable candidates to prepare final
accounts for a range of business organisations as well as analyse the financial position of a limited
company.

For those candidates who successfully achieve this Unit as part of the HNC/HND Accounting Group
Award, there may to opportunities to gain exemptions from a number of professional accounting
bodies. Centres should contact the relevant professional bodies to ascertain their current exemptions
policies.

Outcome 1 introduces candidates to the preparation of final accounts for a range of business
organisations.

Business organisations: sole traders, partnerships, private limited companies, public limited
companies
Final accounts: profit and loss accounts, balance sheets
Adjustments: accruals, prepayments, depreciation, (straight line, reducing balance), bad debts,
allowance for bad/doubtful debts, closing stock, dividends, debenture interest, corporation tax,
transfer to reserve, drawings, interest on capital, interest on drawings, partnership salaries
Presentation and terminology used within final accounts in line with current practice/legislation

Outcome 2 introduces candidates to the preparation of incomplete records for a sole trader.

Opening balance sheet/statement of affairs
Receipts and payments; revenues and expenses
Profit and loss account and balance sheet for a sole trader

Outcome 3 covers the preparation of cash flow statements for limited companies.

Cash flow statement
Disposal of fixed assets; depreciation of fixed assets
Presentation and terminology used should be in line with current practice/legislation

Outcome 4 looks at the analysis of the final accounts of a limited company including the calculation
of accounting ratios.

Accounting ratios: profitability, liquidity, efficiency
Analysis of ratios and significance on company’s financial position




This Unit is likely to form part of a Group Award designed to provide candidates with knowledge and
skills for further study or employment within an accounting environment.

Where this Unit is being delivered as part of the HNC/D Accounting Group Award, it is
recommended that the Unit be delivered towards the beginning of the Group Award either in tandem
with, or following, the HN Unit F7JV 34: Recording Financial Information.

The assessment for Outcomes 1, 3 and 4 could be based around one case study, not necessarily given
as a single assessment event. The assessment could take the format of a trial balance of a limited
company, where the candidate would produce a profit and loss account and balance sheet, a cash flow
statement and then undertake ratio analysis.

The assessment of Outcomes 1 and 2 could be undertaken separately although it is recommended that
Outcomes 3 and 4 be assessed together.

Outcome 1 should be assessed under open book supervised conditions with access to a pro forma
layout for the relevant set of accounts only. It is recommended a different type of business
organisation should be used each time the Outcome is assessed. Outcome 2 should be assessed under
open book supervised conditions with a pro forma issued for the profit and loss account only.
Outcomes 3 and 4 should be assessed under open book supervised conditions.

brought to their attention.

The achievement of this Unit gives automatic certification of the Using Number component of the
Core Skill Numeracy at SCQF level 5. Throughout the Unit the candidates apply a wide range of
numerical skills to solve work related problems.

Open learning
This Unit could be delivered by distance learning. However, it would require planning by the centre
to ensure the authenticity of candidate evidence. Arrangements would have to be made to ensure that

Further advice can be found on SQA’s website www.sqa.org.uk.




This Unit is designed to introduce you to the final accounts of sole traders (from incomplete records),
partnerships and limited companies that operate as either traders or manufacturers. The final accounts
comprise of profit and loss accounts and balance sheets and you will learn how to prepare and present
these statements in accordance with current accounting standards.

As cash flow is important to businesses you will learn how to produce cash flow statements for
limited companies.

Business organisations need to analyse their financial position in terms of profitability, liquidity and
efficiency and you will learn how to calculate and analyse accounting ratios to provide this
information.

This Unit may be assessed by four tasks covering the final accounts of a range of business
organisations requiring you to:

Prepare final accounts for business organisations
Prepare final accounts, for a sole trader, from incomplete records
Prepare a cash flow statement for a limited company
Analyse the final accounts of a limited company using accounting ratios

The assessments will be carried out under supervised conditions.

You will have opportunities to develop the Using Number component within the Core Skill of
Numeracy in this Unit. Achievement of this Unit gives automatic certification of Using Number at
SCQF level 5.




Unit title: Management Accounting Using Information Technology

Unit code: F7JS 34

Unit purpose: This Unit is designed to enable candidates to develop their management information
decision making and information technology skills. The Unit will enable candidates to provide timeous,
meaningful and well-presented financial information. It uses information technology as an assessment
tool to enable candidates to prepare management information for control and decision making in an
organisation.

This Unit is primarily intended for candidates who expect to take up a career or further study in cost or
management accounting but would also be appropriate to those who wish to gain experience in budget
preparation. It is also relevant to those with appropriate work experience who wish to formalise their
management accounting qualifications.


1 Prepare budget statements
2 Prepare a basic budgetary control report and a variance analysis
3 Use break-even analysis for decision making
4 Prepare profit statements using marginal and absorption costing methods

Credit points and level: 2 HN credits at SCQF level 7: (16 SCQF credit points at SCQF level 7*)

centre. However, candidates would normally be expected to be competent in numeracy and
communication at SCQF level 5 or have similar qualifications or experience. Candidates should have
spreadsheet skills prior to commencement of this Unit.

Core Skills: The achievement of this Unit gives automatic certification of the following:
Using Graphical Information at SCQF level 5

There are also opportunities to develop the Writing element of the Written Communication component
of the Core Skill Communication at SCQF level 5 and the Core Skill Problem Solving at SCQF level 5 in
this Unit, and these are highlighted in the Support Notes of this Unit specification.

HN Unit (F7JS 34): Management Accounting Using Information Technology 1



Assessment: This Unit could be assessed by four separate assessments.
standard of achievement required at SCQF level 7.

Since the Numeracy Core Skill components of Using Number at SCQF level 6 and Using Graphical
Information at SCQF level 5 are embedded in this Unit, it is strongly recommended that you follow the
assessment guidelines given. If you wish to use a different assessment model, you should seek prior
verification of the assessment instrument(s) you intend to use to ensure that the Core Skill is still
covered.




Unit code: F7JS 34
mandatory.

Outcome 1
Prepare budget statements

Functional budgets
Master budget
Financial modelling using spreadsheets

they can:

Prepare individual functional budgets and a master budget using a spreadsheet package. Functional
budgets to include:
— Sales
— Production
— Material purchases and usage
— Labour
— Fixed and variable overheads
— Cash

— The budgets for a six month period should be prepared using a recognised spreadsheet package
containing linked worksheets. The master budget should be prepared in a format suitable for
presentation to management.

— The evidence should be presented as printouts of all prepared budgets with evidence that correct
formulae have been used.

Use financial modelling to prepare a revised master budget incorporating a minimum of two
changes in data.

The functional budget templates should be generated under supervised conditions. Candidates should
note that no other materials should be accessed during the assessment event other than the linked
functional budget templates.

The master budget should be generated under supervised conditions with access restricted to the
functional budgets templates only. Candidates should not have access to a pre-prepared Master Budget
Template.

Figures must be accurate within a tolerance of four errors.




It is recommended that the assessment of this Outcome be completed within one and half hours.

Prior to preparation of the master budget the candidates will prepare templates for the functional budgets
with links and formulae. These templates should not include the master budget (ie Profit and Loss
Account and Balance Sheet). Candidates will be able to access and complete these pre-prepared
functional budget templates during the assessment event.

Candidates will be required to enter assessment data and to prepare the master budget during the
assessment, including relevant links and formulae to the functional budgets. Candidates should note that
no other materials should be accessed during the assessment event other than the linked functional
budget templates.



Outcome 2
Prepare a basic budgetary control report and a variance analysis

Cost behaviour
Flexible budgeting
Standard costing
Cost variances
Budgetary control report

they can:

Prepare a budgetary control report comparing flexed budget with actual figures. The variances to be
calculated include:
— Material: price and usage
— Labour: rate and efficiency
— Variable production overheads: expenditure and efficiency
— Fixed production overheads: expenditure and volume
Analyse the variances and prepare a report outlining a minimum of one reason for each sub-variance
calculated.

The budgetary control report and calculation of sub-variances should be prepared using a recognised
spreadsheet package and candidates should demonstrate IT skills by linking worksheets/workbooks
wherever possible.

The evidence should be printouts of all prepared budgets with evidence that correct formulae have been
used.

The evidence should be generated under supervised conditions with access to blank templates only. Prior
to the assessment event candidates will be given a template displaying the layout of the budgetary control
report. Centres should note that no other materials should be accessed during the assessment event other
than the template.

Figures must be accurate within a tolerance of three errors.


Prior to the assessment event candidates should have been given a blank template, suitable for
presentation to management, with no links or formulae. The template for the budgetary control report
and cost variances and analysis of sub-variances should not include any formulae within a cell. Cost
variances can include the formulae for the sub-variance calculations. Candidates will be able to access
the blank spreadsheet template provided and will be required to complete the budgetary report and
calculate the variances and sub-variances during the assessment. They should also provide possible
reasons for the variances.




Outcome 3
Use break-even analysis for decision making

Break-even analysis
Break-even charts
Effect on Profit and Loss
Decision making based on break-even analysis
Use of spreadsheets to demonstrate the graphical and mathematical approach of break-even and the
effects on profits

they can, for three difference scenarios:

Calculate break-even point in revenue and output
Calculate margin of safety in revenue and output
Calculate Profit or Loss at any given output
Calculate effects on Profit or Loss of changes in a minimum of two key variables
Prepare a break-even chart showing break-even and margin of safety for one of the scenarios
Prepare a recommendation for management based on Profit/Loss calculated for each of the three
different scenarios.

The budgets for a six month period should be prepared using a recognised spreadsheet package
containing linked worksheets. Prior to the assessment event candidates will prepare a template displaying
the columnar headings for an operating statement including cells showing the key input data required to
calculate break-even point in a given situation.


Figures must be accurate within a tolerance of two errors.



Prior to the assessment event candidates should prepare a template displaying the columnar headings for
an operating statement including cells showing the key input data required to calculate break-even point
in a given situation. From this information candidates will calculate break-even points and margin of
safety for each of the three different scenarios using a mathematical approach. For one scenario
candidates should demonstrate the changes graphically. Candidates will also calculate the impact on
profits of changes in selling price and costs. Candidates will be required to recommend a suitable course
of action. Candidates should note that no other materials should be accessed during the assessment event
other than the template.




Outcome 4
Prepare profit statements using marginal and absorption costing methods

Profit statements
Marginal and absorption costing
Use of spreadsheets to prepare profit statements

they can:

Prepare profit statements using both marginal and absorption methods, to accurately and clearly
demonstrate different stock valuations under each method.
Compare and contrast the two methods of costing.

The profit statements should be prepared using a recognised spreadsheet package and candidates should
demonstrate IT skills by linking worksheets/workbooks wherever possible.

The evidence should be printouts of data and formulae in relation to marginal and absorption costing.

The evidence should be generated under closed book supervised conditions.

Figures must be accurate within a tolerance of four errors.


It is recommended the assessment of this Outcome be completed within two hours.

Evidence comparing and contrasting the two methods of costing could be generated using a recognised
word processing package.



Unit code: F7JS 34




Version: 01

History of changes:


Source: SQA



SQA acknowledges the valuable contribution that Scotland’s colleges have made to the development of





80 hours.

This Unit is primarily intended to prepare candidates for a career in cost or management accounting but
would also be appropriate to those who wish to gain experience in budget preparation. It is also relevant
to those with appropriate work experience who wish to formalise their management accounting
qualifications.

This Unit is an introduction to management accounting. The use of spreadsheet packages will introduce
candidates to the different presentation possibilities used in management accounting in the workplace.

For those candidates who successfully achieve this Unit, as part of the HNC/HND Accounting Group
Award, there may be opportunities to gain exemptions from a number of professional accounting bodies.
Centres should contact the relevant professional bodies to ascertain their current exemption policies.

Outcome 1 covers the preparation of both functional and master budget statements.

Functional budgets: sales, production, material purchases and usage, labour, fixed and variable
overheads, and cash budget
Master budgets: Profit and Loss Account and Balance Sheet

Outcome 2 covers the preparation of budgetary control reports and cost variances. The variances to
include:

Material: price and usage
Labour: rate and efficiency
Variable production overheads: expenditure and efficiency
Fixed production overheads: expenditure and volume

Outcome 3 involves the use of break-even analysis as an aid to decision making.

Calculation of break-even levels using a mathematical approach
Demonstration of changes using graphs
Effects on profit/loss
Recommendations on courses of action

Outcome 4 covers the preparation of profit statements using marginal and absorption costing. Stock
valuations will be calculated using both methods.





Where this Unit is being delivered as part of the HNC/HND Accounting Group Award it is
recommended that the Unit be delivered towards the beginning of the Group Award to give candidates a
good understanding of, and the application of practical skills in the preparation of budgets, both
functional and master; the operation of standard costing techniques, budgetary control and variance
analysis; the use of break-even and sensitivity analysis and decision making based on break-even
analysis; and the preparation and comparison of marginal and absorption costing statements.

It is recommended each Outcome be assessed separately. The evidence for Outcome 1 is produced under
supervised conditions with access restricted to the functional budgets templates only. The evidence for
Outcome 2 is generated under supervised conditions with access to blank templates only. The evidence
for Outcome 3 is generated under open-book supervised conditions. The evidence for Outcome 4 is
generated under closed-book supervised conditions.

brought to their attendance.


The achievement of this Unit gives automatic certification of the Using Number component of the Core
Skill Numeracy at SCQF level 6. Throughout all four Outcomes of the Unit, the candidates apply a wide
range of numeric skills to solve work related problems.

The achievement of this Unit gives automatic certification of the Using Graphical Information
component of the Core Skill Numeracy at SCQF level 5. In Outcome 3 the candidates are required to
produce and interpret graphs.

The delivery and assessment of this Unit may contribute towards the Writing element of the Written
Communication component of the Core Skill Communication at SCQF level 5 if candidates prepare a
written report for management in Outcome 2.

The delivery and assessment of this Unit may also contribute towards the Core Skill Problem Solving at
SCQF level 5. In Outcome 3 candidates use break-even analysis to aid decision making. This involves
candidates carrying out calculations for three different scenarios and making recommendations to
management based on the calculations.

These Core Skills can be developed through formative activities without being formally assessed for
certification of Core Skills.




Open learning

Further advice can be found on SQA’s website – www.sqa.org.uk.





This Unit will introduce you to management accounting and reporting. You will make use of information
technology to demonstrate the various ways in which management information can be displayed.

In Outcome 1 you will learn how to prepare budget statements using spreadsheets. The budget statements
will include functional budgets and master budgets. The functional budgets covered include: sales;
production; materials purchase and usage; labour; fixed and variable overheads; and cash.

In Outcome 2 you will look at cost variances (material, labour, variable production overheads, and fixed
production overheads) and analyse these and prepare budgetary control reports.

In Outcome 3 you will learn about break-even analysis and how this is used for decision making. You
will calculate break-even levels using a mathematical approach and demonstrate the changes using
graphs.

In Outcome 4 you will prepare profit statements to demonstrate different stock valuations using both
marginal and absorption costing methods.

Throughout the Unit you will demonstrate your skills in using spreadsheets to prepare statements and
link worksheets/workbooks wherever possible.

Each Outcome may be assessed separately. The assessments will be carried out under supervised
conditions.

You will have opportunities to develop components within the Core Skills of Numeracy, Communication
and Problem Solving in this Unit. Achievement of this Unit gives automatic certification of Using
Number at SCQF level 6 and Using Graphical Information at SCQF level 5.




Unit title: Cost Accounting

Unit code: F7JR 34

Unit purpose: This Unit is designed to introduce candidates to costing techniques that may be
utilised within a cost accounting environment. The objective of the Unit is to enable candidates to
maintain a working accounting system for classifying and recording cost accounting information for
purposes such as stock valuations, job costing and profit measurement.

management accounting. It is also relevant to those with appropriate work experience who wish either to
formalise their qualifications or progress in their accounting career.


1 Account for material costs
2 Account for labour costs
3 Apportion and allocate overhead costs
4 Account for product costs
5 Record transactions in a cost accounting system

Credit points and level: 2 HN credits at SCQF level 7: (16 SCQF credit points at SCQF level 7*)

centre. However, candidates would normally be expected to be competent in communication and
numeracy at SCQF level 5 or have similar qualifications or experience.

Core Skills: The achievement of this Unit gives automatic certification of the following:

There are also opportunities to develop the Critical Thinking component of the Problem Solving Core
Skill at SCQF level 4 in this Unit, and these are highlighted in the Support Notes of this Unit
specification.


HN Unit (F7JR 34): Cost Accounting 1


Assessment: This Unit could be assessed using five separate assessments.
standard of achievement required at SCQF level 7.

Since the Using Number component of the Numeracy Core Skill at SCQF level 5 is embedded in this
Unit, it is strongly recommended that you follow the assessment guidelines given. If you wish to use a
different assessment model, you should seek prior moderation of the assessment instrument(s) you intend
to use to ensure that the Core Skill is still covered.




Unit code: F7JR 34
mandatory.

Outcome 1
Account for material costs

Material costs and stock control
Stock control documents
Methods of stock valuation
Stock control indicators

they can:

Complete pro-forma stock control documentation relating to the movement of materials into the
business, within the business and from the business.
Record and calculate stock movements and value stock using two methods of stock valuation from:
LIFO, FIFO or Weighted Average.
Using stock control indicators calculate minimum stock levels, reorder levels, maximum stock
levels, reordering costs, stock holding costs and economic order quantities in a given situation.
Define material costs and outline, with a minimum of six reasons, why stock control is important.

The evidence should be generated under supervised conditions with access restricted to pro-forma
documentation and formulae only. No other textbooks or notes should be available to the candidate.

Figures must be accurate within a tolerance of three arithmetic or computational errors.

It is recommended that the assessment of this Outcome be completed within one and a half hours. The
assessment could be presented as a case study detailing a manufacturing organisation’s stock
movements. From this information candidates could complete the relevant documents and record cards
as well as calculate the stock control levels and values and explain the purpose and importance of stock
control.




Outcome 2
Account for labour costs

Labour costs
Calculation of wages
Idle time
Incentive schemes
Labour turnover

they can:

List the procedures for recording labour costs including documentation required.
Calculate wages in differing situations within the workplace using basic time rate, overtime rate and
differential piece work schemes.
Identify idle time and record it within a cost accounting system.
Use an incentive scheme to show effect on labour costs and profit. The incentive scheme used
should be from: premium bonus schemes, commission or group bonus schemes.
Describe a minimum of two effects on labour turnover for an organisation.

documentation only. No other textbooks or notes should be available to the candidate.

Figures must be accurate within a tolerance of three arithmetic or computational errors, with a maximum
of two errors of principle.

It is recommended that the assessment of this Outcome be completed within two hours. The assessment
could be presented as a case study detailing labour cost information. From this information candidates
could complete the relevant documentation provided as well as accurately calculate wages in differing
situations and subsequent effect on profits/costs and labour turnover.




Outcome 3
Apportion and allocate overhead costs

Overhead analysis
Overhead absorption rates
Absorbed overheads — departmental overheads
Over and under absorption and effect on profits
Service cost centres
Production departments

they can:

Identify the overheads which can be allocated and those which must be apportioned.
Use four different methods of apportioning overheads from: utilising floor space, number of
employees, value of plant/machinery, sales volume and power of machinery.
Calculate relevant departmental overheads after apportionment and allocation and then reapportion
three service cost centre overheads to two production departments.
Calculate overhead absorption rates using the completed overhead analysis, using two different
bases from: direct labour hours, machine hours, cost units or prime cost.
Calculate over/under absorption of all production department overheads based on a comparison of
actual costs and expected costs.
Describe how the over/under absorption of overheads would be treated in the financial records of
the organisation.

documentation only. No other textbooks or notes should be available to the candidate.

Figures must be accurate within a tolerance of three arithmetic or computational errors, with a maximum
of two errors of principle.

It is recommended that the assessment of this Outcome be completed within one and a half hours. The
assessment could be presented as a case study detailing a manufacturing organisation with two
production departments and three service cost centres. From this information candidates should
reapportion overheads using the pro-forma table provided as well as calculating overhead absorption
rates/actual overheads absorbed and under/over absorption. Candidates should be required to explain the
resulting effects on profits.




Outcome 4
Account for product costs

Costs — direct, indirect, fixed and variable
Coding system
Job cost statement
Service cost statement

they can:

Account for product costs (direct, indirect, fixed and variable) by producing a job cost statement
which details the build up of total costs with sub-totals for prime cost and production cost, selling
price being accurately calculated by correctly applying a profit mark-up or margin.
Account for product costs (direct, indirect, fixed and variable) by producing a service cost statement
which differentiates between running (variable) and standing (fixed) costs, providing a total cost
and identifying Unit operating costs.
For each cost statement costs should be coded using a given coding system.

The evidence should be generated under closed book supervised conditions.

For the job cost statement figures must be accurate within a tolerance of three arithmetic or
computational errors, with a maximum of two errors of principle.

For the service cost statement figures must be accurate within a tolerance of two arithmetic or
computational errors, with a maximum of one error of principle.

could be presented as a case study of either a manufacturing or service organisation. From this
information candidates should produce a job cost statement and a service cost statement. Each Cost
Statement could be assessed at a separate assessment event. The coding system used could be that used
in the HN Unit F7JP 34: Using Financial Accounting Software.




Outcome 5
Record transactions in a cost accounting system

Cost accounting systems

they can:

Record a minimum of 20 transactions in either an interlocking or integrated cost accounting system.
Candidates should then:
— Prepare and balance the ledger and control accounts
— Extract a trial balance from the ledger accounts.


Figures must be accurate within a tolerance of two arithmetic or computational errors, with a maximum
of one error of principle.

could be presented as a case study detailing a manufacturing organisation. From this information
candidates could record transactions in a cost accounting system and extract the trial balance.



Unit code: F7JR 34




Version: 02

History of changes:


02 Minor changes to Evidence Requirements in Outcomes 2 and 3. 27/07/10

Source: SQA



SQA acknowledges the valuable contribution that Scotland’s colleges have made to the development of





80 hours.

management accounting. It is also relevant to those with appropriate work experience who wish either to
formalise their qualifications or progress in their accounting career. This Unit is an introduction to cost
accounting and will enable candidates to prepare cost and management accounting information and
reports.

For those candidates who complete this Unit as part of the HNC/D Accounting Group Award there may
be opportunities to gain exemptions from a number of professional bodies. Centres should contact the
relevant professional bodies to ascertain their current exemption policies.

Outcome 1 covers material costs and stock valuation for a manufacturing company.

Definition of direct materials and how their receipt, issue and movement are recorded by
organisations
Stock control importune to cover issues such as holding costs, ordering costs and administrative
costs
Stock valuation methods: LIFO, FIFO and Weighted Average

Outcome 2 covers labour costs.

Timesheets, wages analysis documentation and comparison of payment systems
Direct labour costs
Time and a half and double time overtime, piece rate and/or differential piece rate, group bonus
schemes such as Performance Related Pay

Outcome 3 involves the apportioning and allocation of overhead costs.

Overhead costs — fixed and variable
Methods of apportioning overheads: floor space; number of employees; value of plant/machinery;
sales volume; effective power of machinery
Service cost centres
Production departments

Outcome 4 covers product costs.

Job cost and Service cost statements using a structured layout to identify direct, indirect costs,
variable and fixed costs where appropriate
Cost plus and profit margin to calculate selling price
Use of a given coding system to code costs in each of the cost statements (candidates could use the
coding system used in the Unit F7JP 34: Using Financial Accounting Software)



Outcome 5 covers the recording of transactions in a cost accounting system.

Control accounts — wages, production overhead
Ledgers — Purchases, Sales and General


Where this Unit is being delivered as part of the HNC/D Accounting Group Award, it is recommended
that the Unit be delivered either before, or in tandem with, the HN Unit F7JS 34: Management
Accounting Using Information Technology.

It is recommended that the Unit be delivered in the order of the Outcomes as this will represent a logical
build in knowledge and skills for candidates.

The assessment could be designed around one case study. This could be a manufacturing organisation.
Each Outcome could be assessed separately as there is little scope to combine the assessment of
Outcomes.

All evidence should be produced under supervised conditions. The evidence for Outcomes 1, 2, 3 and 4
should be produced under open book supervised conditions with access restricted to pro-forma
documentation only and the evidence for Outcome 5 should be produced under open book supervised
conditions.

The achievement of this Unit gives automatic certification of the Using Number component of the Core
Skill Numeracy at SCQF level 5. Throughout all 5 Outcomes of this Unit candidates apply a wide range
of numerical skills to solve practical problems.

The delivery and assessment of this Unit may also contribute towards the Critical Thinking component
of the Core Skill Problem Solving at SCQF level 4. In Outcome 3 candidates are required to allocate and
apportion overheads across production and service departments using chosen bases as decided by
candidates. In Outcome 3 candidates are required to code invoices to a coding system using their own
judgement as to the most appropriate code for each cost.

Open learning

Further advice can be found on SQA’s website www.sqa.org.uk.



This Unit is designed to enable you to gain knowledge and develop practical skills in cost accounting.

Outcome 1 covers material costs for a manufacturing business. You will learn about the different
methods of stock valuation and will complete practical tasks using these methods. You will learn about
the importance of stock control and the key stock control indicators. You will use given formulae to
calculate these indicators for an organisation using practical tasks.

Outcome 2 moves on to look at other costs for the business — labour (employee) costs. You will learn
how to calculate gross wages using hourly rates, overtime rates and incentive schemes. You will learn
about the impact of different pay schemes on costs for the business and how these may impact on labour
turnover for the business. You will learn about idle time and will allocate labour costs to jobs worked on
by staff.

Outcome 3 looks at other costs for the business — called overhead costs, these are the indirect costs of
the business which may not be directly attached to a product or job. You will learn how these are spread
across the different cost centres or cost units of the business. You will learn how these costs are shown in
the financial records of the organisation.

Outcome 4 covers all product costs. You will learn how to incorporate these costs into a job cost or
service cost statement. You will learn how to calculate cost plus pricing and a profit mark up for the
organisation. You will also allocate a code, using a given coding system, to the costs involved.

Outcome 5 involves recording transactions in an interlocking and integrated cost accounting system. You
will learn how to prepare ledger and control accounts, balance off ledger accounts and produce a trial
balance.

Each Outcome may be assessed separately and all assessments will be carried out under supervised
conditions.

You will have opportunities to develop components within the Core Skills of Numeracy and Problem
Solving in this Unit. Achievement of this Unit gives automatic certification of Using Number at SCQF
level 5.


Higher National Graded Unit specification

This Graded Unit has been validated as part of the HNC Accounting. Centres are required to develop
the assessment instrument in accordance with this validated specification. Centres wishing to use
another type of Graded Unit or assessment instrument are required to submit proposals detailing the
justification for change for validation.

Graded Unit title: Accounting: Graded Unit 1

Graded Unit code: F8KE 34

Type of Graded Unit: Examination

Assessment Instrument: Closed-book Examination

Credit points and level: 1 HN credit at SCQF level 7: (8 SCQF credit points at SCQF level
7*)

Framework (SCQF). Each qualification in the Framework is allocated a number of SCQF credit points at an
SCQF level. There are 12 SCQF levels, ranging from Access 1 to Doctorates.

Purpose: This Graded Unit is designed to provide evidence that the candidate has achieved the
following principal aims of the HNC Accounting:

To prepare candidates for progression to further study in accounting or a related discipline.
To develop and integrate a range of contemporary vocational skills (ie evaluating and
interpreting financial data).
To enable candidates to integrate financial, costing and management data.

Recommended prior knowledge and skills: It is recommended that the candidate
should have completed or be in the process of completing the following Units relating to these
specific aims prior to undertaking this Graded Unit:

F7JV 34: Recording Financial Information
F7JT 34: Preparing Final Accounts
F7JP 34: Using Financial Accounting Software
F7JS 34: Management Accounting Using Information Technology
F7JR 34: Cost Accounting

Core Skills: There are no Core Skills embedded in this Graded Unit specification.
Assessment: This examination-based Graded Unit is a closed-book examination. It will consist of
an examination of three hours.

An exemplar instrument of assessment and marking guidelines have been produced to show the
national standard of achievement required at SCQF level 7.

HN Graded Unit (F8KE 34): Accounting: Graded Unit 1 1

Graded Unit code: F8KE 34

Graded Unit title: Accounting: Graded Unit 1


Version: 01

History of changes:


Source: SQA


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profit is derived from reproduction and that, if reproduced in part, the source is acknowledged.

SQA acknowledges the valuable contribution that Scotland’s colleges have made to the development
of Higher National qualifications.

Additional copies of this Graded Unit specification (if sourced by the Scottish Qualifications
Authority), can be purchased from the Scottish Qualifications Authority. Please contact the Customer
Contact Centre for further details, telephone 0845 279 1000.

HN Graded Unit (F8KE 34): Accounting: Graded Unit 1 2

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