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I’m just going through the new part of the syllabus and there a few areas I can’t see notes on here for. Would you be able to provide a brief answer for the below just so I know roughly what they are expecting – I brief answer to these would be much appreciated………. Many Thanks
1. Demonstrate how principal internal and external sources of management information may be used for control purposes
2. Identify and discuss the process costs of management accounting information
3.Identify and discuss the Indirect costs of producing Info
4.Discuss the pronciple controls required in generating & distributing internal Info
5.Discuss procedures that may be necessary to ensure security of highly confidentail Info not for external consumptionAre these the kind of questions that could come up for the new part of the syllabus? I found these as examples on the ACCA Website and as I’m working from the June ’12 book I’m worried I don’t have enough information for the new material and potential questions……
Any help would be greatly received
ThanksAnything on this is only likely to be a part of a question and so do not worry too much.
Obviously I cannot write a textbook chapter on here, but the sort of thing is meant are:
1 Internal information is mainly used for control in the sense of things like variance analysis – setting standards (using internal information) and then comparing actual with standards (again using internal information).
External information is mainly used for comparing performance with similar companies.2 The sorts of costs involved are the wages of skilled staff to operate the computer systems; the cost of capturing information (such as the cost of scanners to read barcodes in a shop); the costs of getting external information (if a service is used to provide it, or if it need for example paying to access sets of accounts for other companies).
3 Indirect costs could include things like staff being unhappy due to more computerisation, poor decisions if the quality of the information is not good (i.e. the system has not been designed well).
4 Controls would include things like the use of passwords and audit trails (a record kept on the computer of all entries – especially changes made to entries).
5 The use of things like firewalls to prevent unauthorised access by hackers. Extra security procedures when clients are allowed direct access to their records (like you have access to some of your records at the ACCA, so you can enter for exams and things) – not only do they obviously require passwords, but the system needs designing well so that you can only access your own record and you can only change certain bits of your records (you cannot change your exam marks for example 🙂 )
Hope that helps a bit.
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