2.Statistics for business

a）Calculate a correlation coefficient and a coefficient of determination.

b）Explain the concepts in（a）and interpret the coefficients calculated in（a）.

c）Establish a linear function using regression analysis and interpret the results.

3.Use of computer spreadsheets

a）Explain the role and features of a computer spreadsheet system.

b）Demonstrate a basic understanding of the use of computer spreadsheets.

c）Identify applications for computer spreadsheets in cost and management accounting.

D COST ACCOUNTING TECHNIQUES

1.Accounting for materials

a）Describe the different procedures and documents necessary for the ordering,receiving and issuing of materials from inventory.

b）Describe the control procedures used to monitor physical and 'book' inventory and to minimise discrepancies and losses.

c）Interpret the entries and balances in the material inventory account.

d）Identify,explain and calculate the costs of ordering and holding inventory（including buffer inventory）.

e）Calculate and interpret optimal reorder quantities.

f）Calculate and interpret optimal reorder quantities when discounts apply.

g）Produce calculations to minimise inventory costs when inventory is gradually replenished.

h）Describe and apply appropriate methods for establishing reorder levels where demand in the lead time is constant.

2.Accounting for labour

a）Calculate direct and indirect costs of labour.

b）Explain the methods used to relate input labour costs to work done.

c）Prepare the journal and ledger entries to record labour cost inputs and outputs.

d）Describe different remuneration methods:time- based systems,piecework systems and individual and group incentive schemes.

e）Calculate the level,and analyse the costs and causes of labour turnover.

f）Explain and calculate labour efficiency,capacity and production volume ratios.

g）Interpret the entries in the labour account.

3.Accounting for overheads

a）Explain the different treatment of direct and indirect expenses.

b）Describe the procedures involved in determining production overhead absorption rates.

c）Allocate and apportion production overheads to cost centres using an appropriate basis.

d）Reapportion service cost centre costs to production cost centres（using the reciprocal method where service cost centres work for each other）.

e）Select,apply and discuss appropriate bases for absorption rates.

f）Prepare journal and ledger entries for manufacturing overheads incurred and absorbed.

g）Calculate and explain the under and over absorption of overheads.

h）Apply methods of relating non-production overheads to cost units.