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CV and HN unit specifications

This document provides a summary of Aveen Duffield's qualifications, skills, and work experience. She has an HND in Accounts from James Watt College from 2011 to present. Her previous work experience includes being an adult education tutor from 2004 to 2005 and working as a cook from 1996 to 2002. She has strong communication, organization, and IT skills.

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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. HN Unit (F7JP 34): Using Financial Accounting Software 2
Higher National Unit specification: statement of standards Unit title: Using Financial Accounting Software 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. HN Unit (F7JP 34): Using Financial Accounting Software 3
Higher National Unit specification: statement of standards (cont) Unit title: Using Financial Accounting Software Outcome 2 Use an accounting software package to process financial transactions Knowledge and/or Skills 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 Evidence Requirements Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills by showing that 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. HN Unit (F7JP 34): Using Financial Accounting Software 4
Higher National Unit specification: statement of standards (cont) Unit title: Using Financial Accounting Software Assessment Guidelines It is recommended that the assessment of this Outcome be completed within one and a half hours. 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. Outcome 3 Use an accounting software package to incorporate year-end adjustments and produce final accounts for a small business Knowledge and/or Skills Accruals Prepayments Depreciation Stock journals Profit and loss account Balance sheet 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 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 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. HN Unit (F7JP 34): Using Financial Accounting Software 5
Higher National Unit specification: statement of standards (cont) Unit title: Using Financial Accounting Software Outcome 4 Use an accounting software package to produce a range of accounting reports Knowledge and/or Skills Trial Balance Audit Trail VAT Return Other reports Evidence Requirements Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills by showing that 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. 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. Further guidance is given below. HN Unit (F7JP 34): Using Financial Accounting Software 6
Higher National Unit specification: statement of standards (cont) Unit title: Using Financial Accounting Software 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. HN Unit (F7JP 34): Using Financial Accounting Software 7
Higher National Unit specification: statement of standards (cont) Unit title: Using Financial Accounting Software 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. HN Unit (F7JP 34): Using Financial Accounting Software 8
Administrative Information Unit code: F7JP 34 Unit title: Using Financial Accounting Software 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. HN Unit (F7JP 34): Using Financial Accounting Software 9
Higher National Unit specification: support notes Unit title: Using Financial Accounting Software 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 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 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. HN Unit (F7JP 34): Using Financial Accounting Software 10
Higher National Unit specification: support notes (cont) Unit title: Using Financial Accounting Software 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. HN Unit (F7JP 34): Using Financial Accounting Software 11
Higher National Unit specification: support notes (cont) Unit title: Using Financial Accounting Software 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. HN Unit (F7JP 34): Using Financial Accounting Software 12
General information for candidates Unit title: Using Financial Accounting Software 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. HN Unit (F7JP 34): Using Financial Accounting Software 13
Higher National Unit specification General information for centres 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. 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 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*) *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 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
General information for centres (cont) 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. HN Unit (F7JT 34): Preparing Final Accounts 2
Higher National Unit specification: statement of standards Unit title: Preparing Final Accounts 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 Knowledge and/or Skills Business organisations Profit and loss accounts Balance sheets Adjustments to the final accounts Evidence Requirements 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. Assessment Guidelines 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. HN Unit (F7JT 34): Preparing Final Accounts 3
Higher National Unit specification: statement of standards (cont) Unit title: Preparing Final Accounts 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 Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills by showing 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. HN Unit (F7JT 34): Preparing Final Accounts 4
Higher National Unit specification: statement of standards (cont) Unit title: Preparing Final Accounts Outcome 3 Prepare a cash flow statement for a limited company Knowledge and/or skills Cash flow statements Depreciation and disposal of fixed assets Evidence requirements Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills by showing 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 evidence should be generated under open book supervised conditions. The figures must be accurate within a tolerance of two arithmetic or computational errors with a maximum of one error of principle. Assessment guidelines 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. HN Unit (F7JT 34): Preparing Final Accounts 5
Higher National Unit specification: statement of standards (cont) Unit title: Preparing Final Accounts Outcome 4 Analyse the final accounts of a limited company using accounting ratios. Knowledge and/or skills Accounting ratios Analysis of final accounts Evidence requirements Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills by showing 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 evidence should be generated under open book supervised conditions. 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. Assessment guidelines 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. HN Unit (F7JT 34): Preparing Final Accounts 6
Administrative Information Unit code: F7JT 34 Unit title: Preparing Final Accounts Superclass category: AK 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. HN Unit (F7JT 34): Preparing Final Accounts 7
Higher National Unit specification: support notes Unit title: Preparing Final Accounts 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 80 hours. Guidance on the content and context for this Unit 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 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 HN Unit (F7JT 34): Preparing Final Accounts 8
Higher National Unit specification: support notes (cont) Unit title: Preparing Final Accounts 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 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. 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 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 evidence is generated under the assessment conditions specified for each Outcome. 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. HN Unit (F7JT 34): Preparing Final Accounts 9
General information for candidates Unit title: Preparing Final Accounts 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. HN Unit (F7JT 34): Preparing Final Accounts 10
Higher National Unit specification General information for centres 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. On completion of the Unit the candidate should be able to: 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*) *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 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 Number at SCQF level 6 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
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 four separate assessments. 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 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. HN Unit (F7JS 34): Management Accounting Using Information Technology 2
Higher National Unit specification: statement of standards Unit title: Management Accounting Using Information Technology Unit code: F7JS 34 The sections of the Unit stating the Outcomes, Knowledge and/or Skills, and Evidence Requirements are mandatory. Outcome 1 Prepare budget statements Knowledge and/or Skills Functional budgets Master budget Financial modelling using spreadsheets Evidence Requirements Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills by showing that 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. HN Unit (F7JS 34): Management Accounting Using Information Technology 3
Higher National Unit specification: statement of standards (cont) Unit title: Management Accounting Using Information Technology Assessment Guidelines 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. HN Unit (F7JS 34): Management Accounting Using Information Technology 4
Higher National Unit specification: statement of standards (cont) Unit title: Management Accounting Using Information Technology Outcome 2 Prepare a basic budgetary control report and a variance analysis Knowledge and/or Skills Cost behaviour Flexible budgeting Standard costing Cost variances Budgetary control report Evidence Requirements Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills by showing that 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. Assessment Guidelines It is recommended that the assessment of this Outcome be completed within one and half hours. 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. HN Unit (F7JS 34): Management Accounting Using Information Technology 5
Higher National Unit specification: statement of standards (cont) Unit title: Management Accounting Using Information Technology Outcome 3 Use break-even analysis for decision making Knowledge and/or Skills 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 Evidence Requirements Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills by showing that 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. The evidence should be generated under open book supervised conditions. Figures must be accurate within a tolerance of two errors. Assessment Guidelines It is recommended that the assessment of this Outcome be completed within one and half hours. 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. HN Unit (F7JS 34): Management Accounting Using Information Technology 6
Higher National Unit specification: statement of standards (cont) Unit title: Management Accounting Using Information Technology Outcome 4 Prepare profit statements using marginal and absorption costing methods Knowledge and/or Skills Profit statements Marginal and absorption costing Use of spreadsheets to prepare profit statements Evidence Requirements Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills by showing that 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. Assessment Guidelines 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. HN Unit (F7JS 34): Management Accounting Using Information Technology 7
Administrative Information Unit code: F7JS 34 Unit title: Management Accounting Using Information Technology Superclass category: AK 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. HN Unit (F7JS 34): Management Accounting Using Information Technology 8
Higher National Unit specification: support notes Unit title: Management Accounting Using Information Technology 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 80 hours. Guidance on the content and context for this Unit 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. HN Unit (F7JS 34): Management Accounting Using Information Technology 9
Higher National Unit specification: support notes (cont) Unit title: Management Accounting Using Information Technology 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 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. 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 attendance. Opportunities for developing Core Skills 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. HN Unit (F7JS 34): Management Accounting Using Information Technology 10
Higher National Unit specification: support notes (cont) Unit title: Management Accounting Using Information Technology 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. 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. HN Unit (F7JS 34): Management Accounting Using Information Technology 11
General information for candidates Unit title: Management Accounting Using Information Technology 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. HN Unit (F7JS 34): Management Accounting Using Information Technology 12
Higher National Unit specification General information for centres 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. This Unit is primarily intended for candidates who expect to take up a career or further study in cost or 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. On completion of the Unit the candidate should be able to: 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*) *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 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: Using Number at SCQF level 5 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. 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 (F7JR 34): Cost Accounting 1
General information for centres (cont) Assessment: This Unit could be assessed using five separate assessments. 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. HN Unit (F7JR 34): Cost Accounting 2
Higher National Unit specification: statement of standards Unit title: Cost Accounting Unit code: F7JR 34 The sections of the Unit stating the Outcomes, Knowledge and/or Skills, and Evidence Requirements are mandatory. Outcome 1 Account for material costs Knowledge and/or Skills Material costs and stock control Stock control documents Methods of stock valuation Stock control indicators Evidence Requirements Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills by showing that 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. Assessment Guidelines 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. HN Unit (F7JR 34): Cost Accounting 3
Higher National Unit specification: statement of standards (cont) Unit title: Cost Accounting Outcome 2 Account for labour costs Knowledge and/or Skills Labour costs Calculation of wages Idle time Incentive schemes Labour turnover Evidence Requirements Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills by showing that 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. The evidence should be generated under supervised conditions with access restricted to pro-forma 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. Assessment Guidelines 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. HN Unit (F7JR 34): Cost Accounting 4
Higher National Unit specification: statement of standards (cont) Unit title: Cost Accounting Outcome 3 Apportion and allocate overhead costs Knowledge and/or Skills Overhead analysis Overhead absorption rates Absorbed overheads — departmental overheads Over and under absorption and effect on profits Service cost centres Production departments Evidence Requirements Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills by showing that 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. The evidence should be generated under supervised conditions with access restricted to pro-forma 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. Assessment Guidelines 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. HN Unit (F7JR 34): Cost Accounting 5
Higher National Unit specification: statement of standards (cont) Unit title: Cost Accounting Outcome 4 Account for product costs Knowledge and/or Skills Costs — direct, indirect, fixed and variable Coding system Job cost statement Service cost statement Evidence Requirements Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills by showing that 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. Assessment Guidelines It is recommended that the assessment of this Outcome be completed within two hours. The assessment 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. HN Unit (F7JR 34): Cost Accounting 6
Higher National Unit specification: statement of standards (cont) Unit title: Cost Accounting Outcome 5 Record transactions in a cost accounting system Knowledge and/or Skills Cost accounting systems Evidence Requirements Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills by showing that 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. The evidence should be generated under open book supervised conditions. Figures must be accurate within a tolerance of two arithmetic or computational errors, with a maximum of one error of principle. Assessment Guidelines It is recommended that the assessment of this Outcome be completed within two hours. The assessment 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. HN Unit (F7JR 34): Cost Accounting 7
Administrative Information Unit code: F7JR 34 Unit title: Cost Accounting Superclass category: AK Original date of publication: August 2010 Version: 02 History of changes: Version Description of change Date 02 Minor changes to Evidence Requirements in Outcomes 2 and 3. 27/07/10 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. HN Unit (F7JR 34): Cost Accounting 8
Higher National Unit specification: support notes Unit title: Cost Accounting 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 80 hours. Guidance on the content and context for this Unit This Unit is primarily intended for candidates who expect to take up a career or further study in cost or 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) HN Unit (F7JR 34): Cost Accounting 9
Higher National Unit specification: support notes (cont) Unit title: Cost Accounting Outcome 5 covers the recording of transactions in a cost accounting system. Control accounts — wages, production overhead Ledgers — Purchases, Sales and General 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/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. Opportunities for developing Core Skills 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 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. Further advice can be found on SQA’s website www.sqa.org.uk. HN Unit (F7JR 34): Cost Accounting 10
Higher National Unit specification: support notes (cont) Unit title: Cost Accounting 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. HN Unit (F7JR 34): Cost Accounting 11
General information for candidates Unit title: Cost Accounting 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. HN Unit (F7JR 34): Cost Accounting 12
Higher National Graded Unit specification General information for centres 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*) *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. 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
Administrative Information Graded Unit code: F8KE 34 Graded Unit title: Accounting: Graded Unit 1 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 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
Higher National Graded Unit specification: instructions for designing the assessment task and assessing candidates Graded Unit title: Accounting: Graded Unit 1 Conditions of assessment The assessment is based on a closed-book examination lasting three hours. If a candidate does not achieve a pass or if a candidate wishes to upgrade, this must be based on a significantly different examination from that given originally. A candidate’s grade will be based on his/her achievement on the new assessment event using a significantly different examination, if this results in a higher grade. The examination should be unseen and the assessment should be conducted in controlled and invigilated conditions. At all times, the security, integrity and confidentiality of examinations must be ensured. Instructions for designing the assessment task The examination should be designed to assess the candidate’s critical knowledge and understanding of the topics relating to the specific aims which this Graded Unit is designed to cover. The questions and corresponding marks should be designed in accordance with the ranges indicated in the table that follows. However, the overall total mark for the examination is 100. Percentage weighting Key topics Level of demand for each topic Part 1 Computational (Note 1) Purchase of Materials (Note 2) Complete or check the accuracy of Stores Record Cards 10% Wages Analysis (Note 3) Complete or check documentation relating to payroll calculations Ledger Accounts and Trial Incorporate material purchase, wages and other Balance adjustments into ledger accounts 25% Produce a Trial Balance based on now completed ledger accounts Preparation of Final Accounts Produce the required Profit and Loss and 25% Balance Sheet Part 2 Narrative Candidates should select 2 Describe, explain, illustrate and evaluate questions from a choice of 3 in 40% both Sections A and B (Note 4) HN Graded Unit (F8KE 34): Accounting: Graded Unit 1 3
Higher National Graded Unit specification: instructions for designing the assessment task and assessing candidates (cont) Instructions for designing the assessment task (cont) Part 1: Computational Section 1 This part of the examination relates to a manufacturing company. 2 One materials invoice showing delivery of material on the last day of the financial period along with a completed goods received note. Candidates should be given a partially completed Stores Record Card(s) to complete or a completed Store Record Card to check for accuracy and amend as required 3 Candidates should be given information relating to payroll calculations, eg clock cards, time sheets, wages analysis, etc. The information may be complete or incomplete. Candidates will be required to either compute wage costs and identify direct and indirect costs or check the documentation and amend as required Part 2: Narrative Section (divided into two sections) Section A — Financial Accounting The three questions given to candidates should cover three of the following topics: a Users of Financial Information and Interpretation of Final Accounts b Preparation of Final Accounts and Year End Adjustments c Financial Accounting Software Packages d Accounting Control Mechanisms e Distinction between Financial and Cost Accounting Section B — Management Accounting The three questions given to candidates should cover three of the following topics: a The Theory and Practice of Budgeting b Cost Behaviour c Costing Systems d The use of IT to assist in the provision of Management Information e Distinction between Cost and Financial Accounting The examination will be marked out of 100. Assessors will aggregate the marks achieved by the candidate to arrive at an overall mark for the examination. Assessors will then assign a grade to the candidate for this Graded Unit based on the following grade boundaries: A = 70% — 100% B = 60% — 69% C = 50% — 59% HN Graded Unit (F8KE 34): Accounting: Graded Unit 1 4
Higher National Graded Unit specification: instructions for designing the assessment task and assessing candidates (cont) Guidance on grading candidates Candidates who meet the minimum Evidence Requirements will have their achievement graded as a C (competent), A (highly competent), or B (somewhere between A and C). The grade related criteria to be used to judge candidate performance for this Graded Unit is specified in the following table: Grade A Grade C Is an exam script which consistently: Is an exam script which: interprets and understands the question in a interprets and understands the question in a way which demonstrates insight and clear way which enables the candidate to meet the understanding of issues and relationships basic criteria required answers demonstrate a comprehensive answers demonstrate a limited analysis analysis and evaluation of relevant evaluation and explanation of the question information and other relevant information responses are logically structured and responses are uneven and convey limited coherently expressed demonstrating understanding although some relevant points consistent use of correct terminology are made is clear and well structured throughout with is satisfactorily structured with language and language and terminology used of a terminology used adequate, although not consistently high standard in terms of level, always consistent, in terms of level, accuracy accuracy and technical content and technical content consolidates and integrates required consolidates and integrates required knowledge and skills linking concepts and knowledge and skills but may lack continuity ideas and relating answers explicitly to the and consistency and fail to show clear links question to concepts and ideas convincingly argues and shows links argues and justifies conclusions in an between discussions and conclusions acceptable way but these conclusions may demonstrating comprehensive knowledge lack reasoned understanding, may not link and understanding as well as analysing and well to discussions and may show limited evaluation skills knowledge provides evidence of possible alternative is likely to show one approach and limited approaches and arguments as well as understanding of different interpretations understanding of different interpretations HN Graded Unit (F8KE 34): Accounting: Graded Unit 1 5
Higher National Graded Unit specification: instructions for designing the assessment task and assessing candidates (cont) 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 This Unit is designed to assess the candidate’s ability to integrate knowledge and understanding across the mandatory Units F7JV 34: Recording Financial Information, F7JT 34: Preparing Final Accounts, F7JP 34: Using Financial Accounting Software, F7JS 34: Management Accounting Using Information Technology, and F7JR 34: Cost Accounting. 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 HN Graded Unit (F8KE 34): Accounting: Graded Unit 1 6
General information for candidates This Graded Unit is a mandatory element of the HNC Accounting Group Award and is designed to assess your ability to integrate and apply knowledge across the mandatory Units — F7JV 34: Recording Financial Information, F7JT 34: Preparing Final Accounts, F7JP 34: Using Financial Accounting Software, F7JS 34: Management Accounting Using Information Technology, and F7JR 34: Cost Accounting. This Graded Unit is assessed by a closed-book examination of three hours. The examination consists of two parts: Part 1: Computational (60%) Purchase of materials Wages analysis Ledger Accounts and Trial Balance Preparation of Final Accounts Part 2: Narrative (40%) Financial Accounting Management Accounting The Graded Unit is a mandatory element of the HNC Accounting Group Award. Grades will be awarded on the following bases: A = 70% — 100% B = 60% — 69% C = 50% — 59% HN Graded Unit (F8KE 34): Accounting: Graded Unit 1 7
Higher National Unit specification General information for centres Unit title: Recording Financial Information Unit code: F7JV 34 Unit purpose: This Unit is designed to enable candidates to develop their manual book-keeping skills. It will give them the knowledge needed to record financial information, using a double entry book-keeping system, up to trial balance. The Unit will also enable candidates to complete a VAT Return and incorporate control mechanisms into the book-keeping system. 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 to those with appropriate work experience and who wish to formalise their book-keeping skills. On completion of the Unit the candidate should be able to: 1 Record financial transactions in books of original entry 2 Record financial transactions in a double entry book-keeping system and extract a trial balance 3 Complete a VAT Return 4 Incorporate control mechanisms into a book-keeping system 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 be competent in numeracy and communication at SCQF level 5 or have similar qualifications or experience. Core Skills: The achievement of this Unit gives automatic certification of the following: Using Number at SCQF level 5 There are also opportunities to develop aspects of the Critical Thinking component of the Core Skill Problem Solving at SCQF level 4 in this Unit, and these are highlighted in the Support Notes of this Unit specification. Context for delivery: If this Unit is delivered as part of a Group Award, it is recommended that it should be taught and assessed within the subject area of the Group Award to which it contributes. HN Unit (F7JV 34): Recording Financial Information 1
General information for centres (cont) Assessment: This Unit could be assessed by four separate assessments. Alternatively, it could be assessed by combining the assessment of Outcomes. 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 Core Skill component of Using Number 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 instruments(s) you intend to use to ensure that the Core Skill is still covered. HN Unit (F7JV 34): Recording Financial Information 2
Higher National Unit specification: statement of standards Unit title: Recording Financial Information Unit code: F7JV 34 The sections of the Unit stating the Outcomes, Knowledge and/or Skills, and Evidence Requirements are mandatory. Outcome 1 Record financial transactions in books of original entry Knowledge and/or Skills Financial transactions VAT on financial transactions Books of original entry Evidence Requirements Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills by showing that they can: Record a minimum of 20 financial transactions, covering revenue and capital items, in the relevant books of original entry. — Details of transactions contained within sales and purchase invoices, sales and purchases credit notes, bank transactions received and paid, cash received and paid. — Details of transactions should be recorded in the Sales, Sales Returns, Purchases, and Purchases Returns day books, and Cash Book. Account for VAT on these transactions in the books of original entry. Transactions should cover standard rated, zero rated and exempt items. Total day books and balance cash book. The evidence should be generated under closed book supervised conditions. Figures must be accurate within a tolerance of three arithmetic or computational errors, with a maximum of two errors of principle. Assessment Guidelines This Outcome may be assessed separately or combined with the assessment of Outcome 2. It is recommended that the assessment of this Outcome be completed within one hour. The assessment could be presented as a case study with candidates recording the financial transactions of a business, for one month, in the appropriate books of original entry. Candidates may be provided with appropriate accounting stationery. HN Unit (F7JV 34): Recording Financial Information 3
Higher National Unit specification: statement of standards (cont) Unit title: Recording Financial Information Outcome 2 Record financial transactions in a double entry book-keeping system and extract a trial balance. Knowledge and/or Skills Double entry book-keeping Ledger accounts Trial balance Evidence Requirements Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills by showing that they can: Post financial transactions from the books of original entry - Sales, Sales Returns, Purchases, Purchases Returns and Cash Book - to sales, purchase and general ledger accounts applying double entry book-keeping principles. Balance the ledger accounts for assets, liabilities, income and expenses. Extract a trial balance from the ledger accounts. The evidence should be generated under closed book supervised conditions. Figures must be accurate within a tolerance of three arithmetic or computational errors, with a maximum of four errors of principle. Assessment Guidelines This Outcome may be assessed separately or combined with the assessment of Outcome 1. It is recommended that the assessment of this Outcome be completed within one hour. The assessment could be presented as a continuation of the case study from Outcome 1. Candidates may use any acceptable ledger account layout (T accounts or running balance). Candidates may be provided with appropriate accounting stationery. HN Unit (F7JV 34): Recording Financial Information 4
Higher National Unit specification: statement of standards (cont) Unit title: Recording Financial Information Outcome 3 Complete a VAT Return Knowledge and/or Skills VAT Inputs and Outputs VAT Return Evidence Requirements Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills by showing that they can: Calculate the figures required for a VAT Return from the books of original entry for a minimum of one month. Complete a VAT Return. The evidence should be generated under open-book supervised conditions. Figures must be accurate within a tolerance of three 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 continuation of the case study from Outcomes 1 and 2. Using the corrected books of original entry, and referring to ledger accounts where appropriate, candidates could extract and total input VAT, output VAT, total relevant inputs and total relevant outputs. Finally candidates could use these totals to complete a VAT Return. Outcome 4 Incorporate control mechanisms into a book-keeping system. Knowledge and/or Skills Bank reconciliation Correction of errors Suspense account Evidence Requirements Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills by showing that they can: Reconcile a cash book with a bank statement, and prepare a bank reconciliation statement. A minimum of six different anomalies covering outstanding lodgements, unpresented cheques, standing orders, direct debits, charges, errors in cash book should be included in the reconciliation. Prepare journal entries to correct eight different types of errors in ledger accounts, four of which should affect a suspense account. Open, post to and clear a suspense account. HN Unit (F7JV 34): Recording Financial Information 5
Higher National Unit specification: statement of standards (cont) Unit title: Recording Financial Information The evidence should be generated under open-book supervised conditions. Figures must be accurate within a tolerance of three 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. HN Unit (F7JV 34): Recording Financial Information 6
Administrative Information Unit code: F7JV 34 Unit title: Recording Financial Information Superclass category: AK 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. HN Unit (F7JV 34): Recording Financial Information 7
Higher National Unit specification: support notes Unit title: Recording Financial Information 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 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 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. Outcome 1 covers the recording of financial transactions in the books of original entry. Cash and credit transactions Capital and revenue items Documents involved in transactions — sales invoices, purchases invoices, sales credit notes, purchases credit notes, bank transactions received and paid, cash received and paid VAT — standard and zero rates; exempt Day Books — Sales, Sales Returns, Purchases, Purchases Returns, Cash Book Outcome 2 covers the recording of financial transactions in a double entry book-keeping system and extracting a trial balance. Double entry book-keeping principles Ledger accounts — assets, liabilities, income and expenses Ledger accounts — T accounts or running balance Ledgers — Sales, Purchases, General Preparation and purpose of trial balance Outcome 3 involves the completion of a VAT Return. VAT Inputs and Outputs Total relevant inputs and total relevant outputs Completion of VAT Return HN Unit (F7JV 34): Recording Financial Information 8
Higher National Unit specification: support notes (cont) Unit title: Recording Financial Information Outcome 4 covers control mechanisms which may be incorporated into a book-keeping system. Bank reconciliation — updating of Cash Book; bank reconciliation statement Correction of errors — use of journal to correct errors; errors not affecting agreement of trial balance (error of commission, error of omission, error of principle, compensating error, error of original entry, complete reversal of entry); use of suspense account in correction of errors affecting agreement of trial balance 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/D 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 manual book-keeping using double entry principles. Candidates will then apply these skills in a practical situation. It will also give candidates knowledge and skills in the completion of a VAT Return and the incorporation of control mechanisms into the book-keeping system. The assessments could be designed around one case study. This could consist of a sole trader where the candidates start the process by recording financial transactions in the books of original entry, posting these transactions to ledger accounts and then preparing a trial balance. Thereafter candidates could use the same books of original entry to prepare a VAT Return. Finally, candidates gain an appreciation of control mechanisms by preparing a bank reconciliation statement and correcting errors. Each Outcome could be assessed separately or the assessment of Outcomes 1 and 2 could be combined. All evidence should be produced under supervised conditions. The evidence for Outcomes 1 and 2 will be produced under closed book supervised conditions and for Outcomes 3 and 4 under open book supervised conditions. Opportunities for developing Core Skills The achievement of this Unit gives automatic certification of the Using Number component of the Core Skill Numeracy at SCQF level 5. Throughout all 4 Outcomes of the Unit, candidates apply a wide range of numerical skills to practical tasks. 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 particular, in Outcome 4 candidates are investigating reasons why a straightforward problem with the book-keeping system has arisen. Thereafter they are carrying out the necessary steps to deal with the problem by preparing bank reconciliation statements and journal entries to correct errors in the ledger accounts and suspense account. HN Unit (F7JV 34): Recording Financial Information 9
Higher National Unit specification: support notes (cont) Unit title: Recording Financial Information 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. HN Unit (F7JV 34): Recording Financial Information 10
General information for candidates Unit title: Recording Financial Information This Unit is designed to enable you to develop manual book-keeping skills. In Outcome 1 you will learn how to record financial transactions in the books of original entry of a business. This will cover sales and sales returns, purchases and purchase returns and cash and bank receipts and payments. VAT will be recorded and accounted for. You will learn how to distinguish between cash and credit transactions and capital and revenue expenditure. You will write up the day books and cash book of the organisation to record these transactions. Outcome 2 covers the double entry book-keeping system which is fundamental to book-keeping and accounts. You will learn how every transaction affects two items and how to record these in ledger accounts. You will also learn how to compile a Trial Balance to check the accuracy of the double entries. In Outcome 3 you will look at VAT. You will learn about the rates of VAT and how to complete a VAT Return from the books of original entry. Outcome 4 looks at control mechanisms within a book-keeping system. You will learn how to reconcile the cash book balance with the bank statement and correct errors in the book-keeping records. Each Outcome may be assessed separately or the assessments may be combined. The 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. HN Unit (F7JV 34): Recording Financial Information 11
Higher National Unit specification General information for centres Unit title: IT in Business: Spreadsheets Unit code: F84V 34 Unit purpose: This Unit is designed to allow candidates to develop an understanding of spreadsheet design and how to use spreadsheet features and functions for practical and effective use. It is relevant to candidates wishing to develop their knowledge of spreadsheets as a tool to help provide solutions to common business problems. On completion of the Unit the candidate should be able to: 1 Create a spreadsheet design to provide solutions for a business scenario. 2 Present spreadsheet data in graphical form and interpret the results. 3 Provide solutions to a business scenario using spreadsheet statistical functions. 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, it would be beneficial if candidates have achieved the Unit IT in Business – Word Processing, Spreadsheets and Databases: An Introduction (DE24 33) or the NQ Unit Information Technology for Administrators (DM3R 11) or equivalent or relevant work experience. It would be beneficial if candidates have some competence in Numeracy at SCQF level 4 and Information and Communication Technology at SCQF level 5. This may be demonstrated by possession of a relevant Unit or relevant work experience. Core Skills: The achievement of this Unit gives automatic certification of the following: Numeracy at SCQF level 5 Critical Thinking at SCQF level 5 There are also further opportunities to develop the Core Skill of Information and Communication Technology and the Core Skill components Planning and Organising and Reviewing and Evaluating at SCQF level 5. HN Unit (F84V 34): IT in Business: Spreadsheets 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 Group Award to which it contributes. Assessment: Evidence for this Unit should be generated through assessment undertaken in open- book conditions. Evidence can be generated through assessment of a given case study or a real work place situation. It is recommended that a thematic approach to assessment be adopted. Although each Outcome can be assessed independently, it is recommended that Outcome 1 is assessed by means of a case study the remaining Outcome 2 and Outcome 3 can be assessed together. A portfolio of evidence will be compiled and this may be presented electronically or in hard copy format. Interpretation of results should demonstrate the candidate understands the basic concepts and has the ability to apply these in a practical situation. An Assessment Exemplar has been produced to indicate the national standard of achievement required at SCQF level 7. HN Unit (F84V 34): IT in Business: Spreadsheets 2
Higher National Unit specification: statement of standards Unit title: IT in Business: Spreadsheets Unit code: F84V 34 The sections of the Unit stating the Outcomes, Knowledge and/or Skills, and Evidence Requirements are mandatory. The sections of the Unit stating the Outcomes, Knowledge and/or Skills, and Evidence Requirements are mandatory. Outcome 1 Create a spreadsheet design to provide solutions for a business scenario Knowledge and/or Skills Spreadsheet design Functions Formulas Cell references Cell formats Comments Macro Security features for data protection Evidence Requirements Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills by showing that they can: create a spreadsheet using three interconnected worksheets to solve a business problem create four simple formulas and two complex formulas to include one occurrence of each of the following: add, subtract, multiply, divide in formulas and/or functions apply one occurrence of the following forms of cell referencing: relative, absolute, named cell, named range, 3-D apply two functions: =SUM and =IF apply appropriate cell formatting to assist the analysis/reading of the worksheets using one occurrence of the following: number, font enhancement, conditional formatting apply two spreadsheet features to control the worksheet view record and run one macro to assist with repetitive tasks protect data using two different built in security features HN Unit (F84V 34): IT in Business: Spreadsheets 3
Higher National Unit specification: statement of standards (cont) Unit title: IT in Business: Spreadsheets Assessment Guidelines Assessment may be undertaken in open-book conditions. This Outcome could be assessed by way of a scenario where a business problem has to be analysed and a possible solution provided. There may be opportunities to assess the Outcome using VLE, hardcopy or electronic copies. The Unit may be assessed holistically by a case study of an organisation, or a real work place situation. Single or multiple spreadsheet files may be used to incorporate the Evidence Requirements for Outcomes 1, 2 and 3. The features used in Outcome 1 may provide the data required to support evidence generation for Outcomes 2 and 3. If integrating assessment across Outcomes 1, 2 and 3, candidates should be given the opportunity to correct any errors within their spreadsheet after summative assessment of Outcome 1 has taken place before commencing Outcomes 2 and 3. Outcome 2 Present spreadsheet data in graphical form and interpret the results Knowledge and/or Skills Graphical representation of a single data series Graphical representation of multiple data series Chart enhancements Analyse data Evidence Requirements Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills by showing that they can: create an appropriate chart to represent a single data series create an appropriate chart to represent a multiple data series apply two chart enhancements (the two enhancements can be in the same chart) analyse each chart providing a description of the chart, an explanation of the relevance of the evidence and draw conclusions supported by the information to resolve a business problem Assessment Guidelines Assessment may be undertaken in open-book conditions. Screen capture could be used to demonstrate evidence if appropriate. If Outcomes 1 and 2 are assessed holistically, candidates may use worksheet(s) created in Outcome 1 as the basis for evidence in Outcome 2, once errors in Outcome 1 have been corrected and Outcome 1 deemed fit for purpose. If Outcome 2 is assessed separately the candidate should be provided with information of a similar size and format to that of Outcome 1. HN Unit (F84V 34): IT in Business: Spreadsheets 4
Higher National Unit specification: statement of standards (cont) Unit title: IT in Business: Spreadsheets Candidates may produce a print ready portfolio of spreadsheet analysis to provide solutions to the business problem(s). This evidence may be produced in a short report, attaching spreadsheet results, which may be presented in any suitable way for example printed, submitted electronically, written, oral or signed. Outcome 3 Provide solutions to a business scenario using spreadsheet statistical functions Knowledge and/or Skills Measures of central tendency Summarised data Frequency distribution Standard deviation Evidence Requirements Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills by using built-in statistical functions within a spreadsheet application to provide solutions to a business scenario showing that they can: perform calculations using three methods of averaging — mean, median, mode within the same data set summarise data using three functions to calculate: Largest number in a range; Smallest number in a range; Number of entries in a range prepare a frequency distribution table and represent the results graphically calculate one standard deviation analyse all data results providing a description, an explanation of the relevance of the evidence and draw conclusions supported by the information to resolve a business problem Assessment Guidelines Assessment may be undertaken in open-book conditions. If Outcomes 2 and 3 are assessed holistically, candidates may use the spreadsheet created in Outcome 1 as the basis for the evidence required in Outcome 3. If Outcome 3 is assessed separately, prepared files should be given to the candidate to complete the calculations. Candidates can analyse the results of spreadsheet calculations and by means of short response recommend a course of action. Short response for the resultant findings should include the purpose, relevance and importance of the statistical information used in response to a business problem or problems presented in the case study. Candidates may produce a print ready portfolio of evidence to provide solutions to the business problem(s). This evidence may be produced in a short report, attaching spreadsheet results, which may be presented in any suitable way for example printed, submitted electronically, written, oral or signed. HN Unit (F84V 34): IT in Business: Spreadsheets 5
Administrative Information Unit code: F84V 34 Unit title: IT in Business: Spreadsheets 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. HN Unit (F84V 34): IT in Business: Spreadsheets 6
Higher National Unit specification: support notes Unit title: IT in Business: Spreadsheets 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 This Unit is designed to provide candidates with the knowledge and skills for further study or employment in an administrative or IT environment. This is a mandatory Unit within the HNC/HND Administration and Information Technology (G9M7 15 and G9M8 16) but is also included within other HN Group Awards and can be taken as a stand-alone Unit. This Unit embeds part of the underpinning knowledge required for Administration and Information Technology Graded Unit 1 (F84W 34). As Candidates work through this Unit they should be made aware that topic areas covered may be assessable in Graded Unit 1. Candidates could then consider when and why they would use spreadsheet functions and features and identify relevant business examples to support revision for Graded Unit 1. Candidates should be aware of the principles and purpose of good spreadsheet design and be able to apply spreadsheet functions, formulas, format and charting features to recommend numerical solutions for situations commonly found within today’s business environment. Topics could include the design of Budget templates (wedding, household, retirement, marketing), Financial templates (mortgage affordability, early retirement scenario, property portfolios) and Business templates (restaurant menu and recipe costing, monthly profit and loss statements, inventory management). Candidates should be able to prepare financial and statistical reports to generate information in support of managerial decision-making. This Unit should help develop critical thinking skills important in today’s business environment. Candidates should analyse data using spreadsheet application software and use critical thinking and analysis to find efficient and effective solutions to solve business problems. Candidates should therefore be competent in methods of problem solving and be able to select appropriate spreadsheet formulas and functions that will produce meaningful results. Candidates should be able to demonstrate that they can explain the results of their calculations, therefore it is important that candidates can explain what the graph/chart/table is representing and so be familiar with common terminology to describe patterns, direction of tendency and exceptions. Outcome 1 Candidates will be expected to create an electronic spreadsheet that simulates a given paper-based example and interpret the results of formulas for the purpose of decision-making. Spreadsheets are frequently used for financial information because of their ability to re-calculate formulas automatically. Candidates should be encouraged to make use of the Function feature of spreadsheet software, demonstrate that they have applied the rules for entering arithmetic formulas (BODMAS) and can explain the results of calculations such as totals, percentage of totals and conditional statements. Simple formula would involve the use of one operator. Complex formula would involve the use of two or more operators that apply BODMAS rules. As formulas become more complicated, the harder they are to check, therefore candidates should be introduced to displaying formulas in the formula bar and displaying formulas inside cells. HN Unit (F84V 34): IT in Business: Spreadsheets 7
Higher National Unit specification: support notes (cont) Unit title: IT in Business: Spreadsheets Candidates should be familiar with the rules of conditional logic and the application of conditional formats to visually explore and analyse data, detect critical issues and identify patterns and trends important to a business. Some examples could include comparison of worker productivity, sales figures or product performance. Before sending a workbook that contains large amounts of data or charts to print candidates should be able to fine-tune the display of data to achieve professional-looking results. Candidates will be expected to adjust window options to display spreadsheet data as formulas or resultant data values when required. Outcome 1 may be assessed via an electronic format. This would allow the assessor to ensure use of conditional formatting and insertion of comments. Assessing documents electronically provides centres with the option of assessment via e-portfolios. Screen capture could also be used to demonstrate Evidence Requirements where appropriate. Outcome 2 The resulting spreadsheet data created in Outcome 3 can be represented graphically to provide evidence for Outcome 2. Candidates should be familiar with various chart types, what chart type/subtype is appropriate to any given situation for the comparison and/or distribution of data and that a pie chart should only be used to show the breakdown of a recognisable whole. Recommended areas for learning include, charting single and multiple data series where the data source is in adjacent and non adjacent columns. Extensive use of the chart toolbar features should be made in order to format the data series and add meaning to chart elements to enhance the presentation of each chart. Outcome 3 Candidates should have an appreciation of statistical terminology used to describe and compare data sets such as mean, median, mode collectively known as measures of central tendency. Candidates will be required to use various functions to manage and analyse data within a tabular data set. A suggestion to introduce the merit of CountIF and DcountA functions may be relevant at this point. Centres should choose the most suitable functions in relation to the Case Study or workplace situation. If introducing candidates to the DcountA function, there may be opportunity for discussion on the typical layout of a database and how field names can be synonymous with column headers and records with contents of rows as the DcountA function counts the non-blank cells in a selected range that match the conditions in a specified criteria. Candidates will be expected to use three methods of averaging data (mean, median, mode) alongside chosen Count function for the preparation of a grouped frequency table. HN Unit (F84V 34): IT in Business: Spreadsheets 8
Higher National Unit specification: support notes (cont) Unit title: IT in Business: Spreadsheets It is important for candidates to understand the links between these elements of statistics and how they can be brought together for a final analysis. Candidates should appreciate the link between using the mean and standard deviation together to provide more meaningful comparative statistical information for decision making in business. Examples of tasks commonly found within the workplace could include the collection and analysis of questionnaire data, of statistics to monitor website activity or performance indicators for government organisations such as health boards and employment agencies. Guidance on the delivery and assessment of this Unit Opportunities exists for integration of delivery and assessment with the Unit Recording Financial Transactions (F847 33) when delivered as part of the HNC Administration and Information Technology (G9M7 15) Group Award. Source business documents could be produced using a spreadsheet application. Delivery can be enhanced through the use of prepared and half-completed spreadsheets which candidates can recall from file and amend according to instructions. A wide variety of examples are available from books and websites. The adaptation of existing materials could include problems involving insurance, calculation of hire purchase, payslips, profit and loss returns and where possible the solutions to these problems should be further analysed using diagrammatic and statistical means. Outcome 1 Candidates could produce a worksheet from a given set of tabular data and examine the factors that constitute good spreadsheet design practice. These could be compared with some examples of poor practice to help candidates avoid similar pitfalls as they work through the design process. Candidates could use a wide range of formatting and display features to enhance the presentation of spreadsheet data, as with a worksheet with row after row of numbers, it is not always easy to see patterns and trends. Suitable fonts, borders, backgrounds and colours for contrast could be chosen for ease of data entry. User-friendly features to help navigation between multiple worksheets and customisation of window elements should be incorporated into the spreadsheet design and ought to be considered prior to performing simple consolidation exercises. In addition the generation of macros could provide a shortcut to repetitive tasks such as the formatting cell ranges or standardising print options. Outcome 2 It is important that candidates can explain what the graph/chart/table is representing and therefore be familiar with common adjectives to describe patterns, direction of tendency and exceptions. Candidates could be encouraged to use titles and the axes to illustrate what the graph/chart/table represents. Consideration should be given to the axes titles and units and although not always necessary to include in the description, could help avoid errors when interpreting the data. If there is an obvious trend, it is important to mention this and any other significant factors such as the largest and the smallest number. Most graphs will fluctuate in some way or another so once a trend has been identified it is also necessary to point out obvious exceptions. Finally, candidates will be expected to draw conclusions supported by the information presented in the graphs/charts/tables. HN Unit (F84V 34): IT in Business: Spreadsheets 9
Higher National Unit specification: support notes (cont) Unit title: IT in Business: Spreadsheets Outcome 3 Candidates will be required to organise data to determine the arithmetic Mean, Mode, Median of a data set comprising of an even or odd number of values. By doing so candidates will appreciate how data is centred around specific values and progress to examine how the data spreads out from these measures of central tendency. It may be advantageous for candidates to follow a manual worked example for mean and standard deviation, prior to using an electronic spreadsheet. The same data could be entered or imported into a spreadsheet application and existing statistical functions could be selected to perform calculations on the data. Opportunities for developing Core Skills Numeracy at SCQF level 5 Th e gen er a l skill for t he Using Number Cor e Skill com pon ent is Carry out calculations. Th e r equ ir em en t s of t h e assessm en t for Ou t com e 1 specify t h a t t h e ca n didat e will cr eat e a spr eadsheet docum en t a n d demonstrate that they have applied the rules for entering arithmetic formulas (BODMAS) and can explain the results of calculations such as totals, percentage of totals and be familiar with the rules of conditional logic. The other general skill for the ‘Using Number’ component is Work with statistical data. The requirements of the assessment for Outcome 3 specify that the candidate should make use of each of the statistical functions (Mean, Median, Mode, Standard deviation, and Frequency distribution) and then summarise findings based on the results. Th e gen er a l skills for t he ‘Using Graphical Information’ com pon en t a r e Read graphs and P r esen t in for m at ion in gr a ph ica l for m . Th e r equ ir em ent s of t h e a ssessm en t for Ou t com e 2 specify t h at t he ca ndida t e ca n pr epa r e a ppr opr ia t e ch a r t s fr om given spr ea dsh eet da t a , extract relevant information from each chart type and provide meaningful comment. Additionally a requirement of Outcome 3 specifies that the candidate should prepare a graphical representation of a frequency distribution table. Problem Solving at SCQF level 5 Th e r equ ir em ent s of t he a ssessm en t for Ou t com e 1 specify t h at t h e can dida t e will design , cr ea t e a n d pr epa r e a spr ea dsh eet docum en t for dist r ibu t ion. Th e gen er a l skill for t h e ‘Cr it ica l Th ink in g’ com pon ent is Analyse a situation or issue. Th e ca ndida t e sh ou ld be en cou r a ged t o a n a lyse da t a in a scen a r io t o assess wh at da t a is r eleva nt , iden t ify t h e com pon en t fa ct or s t o inclu de in t he in it ia l spr ea dsh eet design, con sider t h e ben efit s a nd lim it at ion s of t he pr oposed design , r esu lt in g in sin gle or m u lt iple spr eadsh eet files wh ich con t ain sin gle or m u lt iple wor ksh eet s t o pr ovide sum m ar y infor m a t ion for m a n a gem en t . HN Unit (F84V 34): IT in Business: Spreadsheets 10
Higher National Unit specification: support notes (cont) Unit title: IT in Business: Spreadsheets Th e gen er a l skill for t he ‘P la n n in g a nd Or ga n isin g’ com pon ent is Plan, organise and complete a task. Th e ca ndida t e sh ou ld be en cou r aged t o develop a pla n eviden ced by a m odel specifica t ion docu m en t t o in for m t h e design of t h e spr ea dsh eet . Addit ion a lly t h e cr ea t ion of a m a cr o would r equ ir e a set pr ocedur e list wh ich cou ld be eviden ced by dr aft n ot es of m acr o in st r u ct ion s or visu a l basic code. Ca n didat es shou ld pr epa r e a docu m ent for dist r ibut ion in wh ich t h ey will iden t ify a n d obt a in r esour ce s as t h ey prepare one complete worksheet of data for printing with fully formatted numerical values displayed as values and prepare one selected print area of worksheet data for printing with formulas displayed. Conditional formatting will be used to identify specific areas that might be of interest to management. The result of the Outcome will be a ‘fit for purpose’ spreadsheet to provide management with summary information. The general skill for the ‘Reviewing and Evaluating’ component is Review and Evaluate a problem solving activity. Outcomes 2 and 3 the candidate will review the results of charts and statistical data, providing a description of the chart/data, an explanation of the relevance of the evidence in terms of patterns, trends, exceptions and draw conclusions supported by the summary information to resolve a business problem. Information and Communication Technology at SCQF level 5 Th e deliver y a n d a ssessm en t of t h is Unit m a y con t r ibu t e t owa r ds t h e com pon ent s ‘Accessing Information’ a nd ‘Processing Information‘ of t he Cor e Skill ICT a t SCQF level 5. Th e gen er a l skills for t he ‘Accessing Information’ com pon ent s a r e ‘Use ICT to locate information’ and ‘Keep data secure’. Th e r equ ir em en t s of t h e a ssessm en t for Out com e 1 specify t h a t t h e ca n dida t e will u se spr eadsh eet a pplicat ion soft wa r e to en t er a nd edit da t a in t h e cr ea t ion of sin gle or m u lt iple spreadsheet files. In a ddit ion t h e ca n dida t e will dem onst r at e t h e pr ot ect ion of dat a usin g a minimum of 2 security features (unlock specific areas of a protected worksheet, add a password to control access to protected elements or worksheet, set read-only recommendation for a workbook, protect the structure and windows of a workbook, use digital signatures with a macro in a workbook). Th e gen er a l skill for t he ‘Processing Information ‘com pon ent is ‘Carry out ICT activities’. ICT a ct ivit ies ar e ca r r ied out t h r ou gh ou t assessm ent for Ou t com es 1 t o 3. Th e ca n dida t e will be r esponsible for effect ive u se of h a r dwar e devices a n d spr ea dsh eet applica t ion soft war e as they prepare a spreadsheet document for distribution. Open learning If this Unit is delivered by open or distance learning methods, additional resources will be required for candidate support, assessment and quality assurance. It would require planning by the centre to ensure the sufficiency and authenticity of candidate’s evidence. 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 HN Unit (F84V 34): IT in Business: Spreadsheets 11
General information for candidates Unit title: IT in Business: Spreadsheets Along with word processing packages, the most widely used software application is the spreadsheet. This Unit will introduce you to the different uses of spreadsheets, ranging from creating financial reports to handlings lists of data and preparing charts to provide solutions to common business problems. Outcome 1 concentrates on spreadsheet design and creation. You will create relevant single or multiple spreadsheet files and consolidate the data within related worksheets to provide summary information for a business problem. Outcome 2 develops skills for the graphical representation of data. You will use charting and enhancement features to identify and describe patterns, direction of tendency and exceptions as you draw conclusions based on a common business problem. Outcome 3 develops the use of spreadsheet statistical functions for the numerical summary of data to aid decision-making. You should use frequency distribution tables and statistical functions to summarise information and then draw conclusions based on a common business problem. This Unit should develop critical thinking skills as you should be able to judge the appropriate spreadsheet formulas and functions for the presentation and summary of data to provide solutions to a given situation and communicate their findings to aid problem solving. The achievement of this Unit will give automatic certification of the following: The Core Skill of Numeracy and the Core Skill component of Critical Thinking at SCQF level 5 You may also have opportunities to develop the Core Skill of Information and Communication Technology and the Core Skill components Planning and Organising and Reviewing and Evaluating at SCQF level 5. HN Unit (F84V 34): IT in Business: Spreadsheets 12

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CV and HN unit specifications

  • 1.
    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
  • 2.
    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
  • 3.
    Higher National Unitspecification 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
  • 4.
    General information forcentres (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. HN Unit (F7JP 34): Using Financial Accounting Software 2
  • 5.
    Higher National Unitspecification: statement of standards Unit title: Using Financial Accounting Software 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. HN Unit (F7JP 34): Using Financial Accounting Software 3
  • 6.
    Higher National Unitspecification: statement of standards (cont) Unit title: Using Financial Accounting Software Outcome 2 Use an accounting software package to process financial transactions Knowledge and/or Skills 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 Evidence Requirements Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills by showing that 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. HN Unit (F7JP 34): Using Financial Accounting Software 4
  • 7.
    Higher National Unitspecification: statement of standards (cont) Unit title: Using Financial Accounting Software Assessment Guidelines It is recommended that the assessment of this Outcome be completed within one and a half hours. 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. Outcome 3 Use an accounting software package to incorporate year-end adjustments and produce final accounts for a small business Knowledge and/or Skills Accruals Prepayments Depreciation Stock journals Profit and loss account Balance sheet 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 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 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. HN Unit (F7JP 34): Using Financial Accounting Software 5
  • 8.
    Higher National Unitspecification: statement of standards (cont) Unit title: Using Financial Accounting Software Outcome 4 Use an accounting software package to produce a range of accounting reports Knowledge and/or Skills Trial Balance Audit Trail VAT Return Other reports Evidence Requirements Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills by showing that 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. 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. Further guidance is given below. HN Unit (F7JP 34): Using Financial Accounting Software 6
  • 9.
    Higher National Unitspecification: statement of standards (cont) Unit title: Using Financial Accounting Software 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. HN Unit (F7JP 34): Using Financial Accounting Software 7
  • 10.
    Higher National Unitspecification: statement of standards (cont) Unit title: Using Financial Accounting Software 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. HN Unit (F7JP 34): Using Financial Accounting Software 8
  • 11.
    Administrative Information Unit code: F7JP 34 Unit title: Using Financial Accounting Software 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. HN Unit (F7JP 34): Using Financial Accounting Software 9
  • 12.
    Higher National Unitspecification: support notes Unit title: Using Financial Accounting Software 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 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 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. HN Unit (F7JP 34): Using Financial Accounting Software 10
  • 13.
    Higher National Unitspecification: support notes (cont) Unit title: Using Financial Accounting Software 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. HN Unit (F7JP 34): Using Financial Accounting Software 11
  • 14.
    Higher National Unitspecification: support notes (cont) Unit title: Using Financial Accounting Software 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. HN Unit (F7JP 34): Using Financial Accounting Software 12
  • 15.
    General information forcandidates Unit title: Using Financial Accounting Software 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. HN Unit (F7JP 34): Using Financial Accounting Software 13
  • 16.
    Higher National Unitspecification General information for centres 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. 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 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*) *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 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
  • 17.
    General information forcentres (cont) 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. HN Unit (F7JT 34): Preparing Final Accounts 2
  • 18.
    Higher National Unitspecification: statement of standards Unit title: Preparing Final Accounts 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 Knowledge and/or Skills Business organisations Profit and loss accounts Balance sheets Adjustments to the final accounts Evidence Requirements 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. Assessment Guidelines 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. HN Unit (F7JT 34): Preparing Final Accounts 3
  • 19.
    Higher National Unitspecification: statement of standards (cont) Unit title: Preparing Final Accounts 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 Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills by showing 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. HN Unit (F7JT 34): Preparing Final Accounts 4
  • 20.
    Higher National Unitspecification: statement of standards (cont) Unit title: Preparing Final Accounts Outcome 3 Prepare a cash flow statement for a limited company Knowledge and/or skills Cash flow statements Depreciation and disposal of fixed assets Evidence requirements Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills by showing 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 evidence should be generated under open book supervised conditions. The figures must be accurate within a tolerance of two arithmetic or computational errors with a maximum of one error of principle. Assessment guidelines 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. HN Unit (F7JT 34): Preparing Final Accounts 5
  • 21.
    Higher National Unitspecification: statement of standards (cont) Unit title: Preparing Final Accounts Outcome 4 Analyse the final accounts of a limited company using accounting ratios. Knowledge and/or skills Accounting ratios Analysis of final accounts Evidence requirements Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills by showing 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 evidence should be generated under open book supervised conditions. 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. Assessment guidelines 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. HN Unit (F7JT 34): Preparing Final Accounts 6
  • 22.
    Administrative Information Unit code: F7JT 34 Unit title: Preparing Final Accounts Superclass category: AK 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. HN Unit (F7JT 34): Preparing Final Accounts 7
  • 23.
    Higher National Unitspecification: support notes Unit title: Preparing Final Accounts 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 80 hours. Guidance on the content and context for this Unit 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 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 HN Unit (F7JT 34): Preparing Final Accounts 8
  • 24.
    Higher National Unitspecification: support notes (cont) Unit title: Preparing Final Accounts 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 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. 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 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 evidence is generated under the assessment conditions specified for each Outcome. 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. HN Unit (F7JT 34): Preparing Final Accounts 9
  • 25.
    General information forcandidates Unit title: Preparing Final Accounts 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. HN Unit (F7JT 34): Preparing Final Accounts 10
  • 26.
    Higher National Unitspecification General information for centres 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. On completion of the Unit the candidate should be able to: 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*) *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 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 Number at SCQF level 6 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
  • 27.
    General information forcentres (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 four separate assessments. 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 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. HN Unit (F7JS 34): Management Accounting Using Information Technology 2
  • 28.
    Higher National Unitspecification: statement of standards Unit title: Management Accounting Using Information Technology Unit code: F7JS 34 The sections of the Unit stating the Outcomes, Knowledge and/or Skills, and Evidence Requirements are mandatory. Outcome 1 Prepare budget statements Knowledge and/or Skills Functional budgets Master budget Financial modelling using spreadsheets Evidence Requirements Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills by showing that 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. HN Unit (F7JS 34): Management Accounting Using Information Technology 3
  • 29.
    Higher National Unitspecification: statement of standards (cont) Unit title: Management Accounting Using Information Technology Assessment Guidelines 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. HN Unit (F7JS 34): Management Accounting Using Information Technology 4
  • 30.
    Higher National Unitspecification: statement of standards (cont) Unit title: Management Accounting Using Information Technology Outcome 2 Prepare a basic budgetary control report and a variance analysis Knowledge and/or Skills Cost behaviour Flexible budgeting Standard costing Cost variances Budgetary control report Evidence Requirements Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills by showing that 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. Assessment Guidelines It is recommended that the assessment of this Outcome be completed within one and half hours. 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. HN Unit (F7JS 34): Management Accounting Using Information Technology 5
  • 31.
    Higher National Unitspecification: statement of standards (cont) Unit title: Management Accounting Using Information Technology Outcome 3 Use break-even analysis for decision making Knowledge and/or Skills 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 Evidence Requirements Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills by showing that 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. The evidence should be generated under open book supervised conditions. Figures must be accurate within a tolerance of two errors. Assessment Guidelines It is recommended that the assessment of this Outcome be completed within one and half hours. 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. HN Unit (F7JS 34): Management Accounting Using Information Technology 6
  • 32.
    Higher National Unitspecification: statement of standards (cont) Unit title: Management Accounting Using Information Technology Outcome 4 Prepare profit statements using marginal and absorption costing methods Knowledge and/or Skills Profit statements Marginal and absorption costing Use of spreadsheets to prepare profit statements Evidence Requirements Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills by showing that 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. Assessment Guidelines 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. HN Unit (F7JS 34): Management Accounting Using Information Technology 7
  • 33.
    Administrative Information Unit code: F7JS 34 Unit title: Management Accounting Using Information Technology Superclass category: AK 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. HN Unit (F7JS 34): Management Accounting Using Information Technology 8
  • 34.
    Higher National Unitspecification: support notes Unit title: Management Accounting Using Information Technology 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 80 hours. Guidance on the content and context for this Unit 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. HN Unit (F7JS 34): Management Accounting Using Information Technology 9
  • 35.
    Higher National Unitspecification: support notes (cont) Unit title: Management Accounting Using Information Technology 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 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. 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 attendance. Opportunities for developing Core Skills 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. HN Unit (F7JS 34): Management Accounting Using Information Technology 10
  • 36.
    Higher National Unitspecification: support notes (cont) Unit title: Management Accounting Using Information Technology 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. 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. HN Unit (F7JS 34): Management Accounting Using Information Technology 11
  • 37.
    General information forcandidates Unit title: Management Accounting Using Information Technology 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. HN Unit (F7JS 34): Management Accounting Using Information Technology 12
  • 38.
    Higher National Unitspecification General information for centres 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. This Unit is primarily intended for candidates who expect to take up a career or further study in cost or 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. On completion of the Unit the candidate should be able to: 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*) *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 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: Using Number at SCQF level 5 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. 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 (F7JR 34): Cost Accounting 1
  • 39.
    General information forcentres (cont) Assessment: This Unit could be assessed using five separate assessments. 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. HN Unit (F7JR 34): Cost Accounting 2
  • 40.
    Higher National Unitspecification: statement of standards Unit title: Cost Accounting Unit code: F7JR 34 The sections of the Unit stating the Outcomes, Knowledge and/or Skills, and Evidence Requirements are mandatory. Outcome 1 Account for material costs Knowledge and/or Skills Material costs and stock control Stock control documents Methods of stock valuation Stock control indicators Evidence Requirements Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills by showing that 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. Assessment Guidelines 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. HN Unit (F7JR 34): Cost Accounting 3
  • 41.
    Higher National Unitspecification: statement of standards (cont) Unit title: Cost Accounting Outcome 2 Account for labour costs Knowledge and/or Skills Labour costs Calculation of wages Idle time Incentive schemes Labour turnover Evidence Requirements Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills by showing that 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. The evidence should be generated under supervised conditions with access restricted to pro-forma 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. Assessment Guidelines 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. HN Unit (F7JR 34): Cost Accounting 4
  • 42.
    Higher National Unitspecification: statement of standards (cont) Unit title: Cost Accounting Outcome 3 Apportion and allocate overhead costs Knowledge and/or Skills Overhead analysis Overhead absorption rates Absorbed overheads — departmental overheads Over and under absorption and effect on profits Service cost centres Production departments Evidence Requirements Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills by showing that 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. The evidence should be generated under supervised conditions with access restricted to pro-forma 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. Assessment Guidelines 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. HN Unit (F7JR 34): Cost Accounting 5
  • 43.
    Higher National Unitspecification: statement of standards (cont) Unit title: Cost Accounting Outcome 4 Account for product costs Knowledge and/or Skills Costs — direct, indirect, fixed and variable Coding system Job cost statement Service cost statement Evidence Requirements Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills by showing that 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. Assessment Guidelines It is recommended that the assessment of this Outcome be completed within two hours. The assessment 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. HN Unit (F7JR 34): Cost Accounting 6
  • 44.
    Higher National Unitspecification: statement of standards (cont) Unit title: Cost Accounting Outcome 5 Record transactions in a cost accounting system Knowledge and/or Skills Cost accounting systems Evidence Requirements Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills by showing that 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. The evidence should be generated under open book supervised conditions. Figures must be accurate within a tolerance of two arithmetic or computational errors, with a maximum of one error of principle. Assessment Guidelines It is recommended that the assessment of this Outcome be completed within two hours. The assessment 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. HN Unit (F7JR 34): Cost Accounting 7
  • 45.
    Administrative Information Unit code: F7JR 34 Unit title: Cost Accounting Superclass category: AK Original date of publication: August 2010 Version: 02 History of changes: Version Description of change Date 02 Minor changes to Evidence Requirements in Outcomes 2 and 3. 27/07/10 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. HN Unit (F7JR 34): Cost Accounting 8
  • 46.
    Higher National Unitspecification: support notes Unit title: Cost Accounting 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 80 hours. Guidance on the content and context for this Unit This Unit is primarily intended for candidates who expect to take up a career or further study in cost or 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) HN Unit (F7JR 34): Cost Accounting 9
  • 47.
    Higher National Unitspecification: support notes (cont) Unit title: Cost Accounting Outcome 5 covers the recording of transactions in a cost accounting system. Control accounts — wages, production overhead Ledgers — Purchases, Sales and General 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/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. Opportunities for developing Core Skills 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 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. Further advice can be found on SQA’s website www.sqa.org.uk. HN Unit (F7JR 34): Cost Accounting 10
  • 48.
    Higher National Unitspecification: support notes (cont) Unit title: Cost Accounting 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. HN Unit (F7JR 34): Cost Accounting 11
  • 49.
    General information forcandidates Unit title: Cost Accounting 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. HN Unit (F7JR 34): Cost Accounting 12
  • 50.
    Higher National GradedUnit specification General information for centres 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*) *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. 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
  • 51.
    Administrative Information Graded Unitcode: F8KE 34 Graded Unit title: Accounting: Graded Unit 1 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 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
  • 52.
    Higher National GradedUnit specification: instructions for designing the assessment task and assessing candidates Graded Unit title: Accounting: Graded Unit 1 Conditions of assessment The assessment is based on a closed-book examination lasting three hours. If a candidate does not achieve a pass or if a candidate wishes to upgrade, this must be based on a significantly different examination from that given originally. A candidate’s grade will be based on his/her achievement on the new assessment event using a significantly different examination, if this results in a higher grade. The examination should be unseen and the assessment should be conducted in controlled and invigilated conditions. At all times, the security, integrity and confidentiality of examinations must be ensured. Instructions for designing the assessment task The examination should be designed to assess the candidate’s critical knowledge and understanding of the topics relating to the specific aims which this Graded Unit is designed to cover. The questions and corresponding marks should be designed in accordance with the ranges indicated in the table that follows. However, the overall total mark for the examination is 100. Percentage weighting Key topics Level of demand for each topic Part 1 Computational (Note 1) Purchase of Materials (Note 2) Complete or check the accuracy of Stores Record Cards 10% Wages Analysis (Note 3) Complete or check documentation relating to payroll calculations Ledger Accounts and Trial Incorporate material purchase, wages and other Balance adjustments into ledger accounts 25% Produce a Trial Balance based on now completed ledger accounts Preparation of Final Accounts Produce the required Profit and Loss and 25% Balance Sheet Part 2 Narrative Candidates should select 2 Describe, explain, illustrate and evaluate questions from a choice of 3 in 40% both Sections A and B (Note 4) HN Graded Unit (F8KE 34): Accounting: Graded Unit 1 3
  • 53.
    Higher National GradedUnit specification: instructions for designing the assessment task and assessing candidates (cont) Instructions for designing the assessment task (cont) Part 1: Computational Section 1 This part of the examination relates to a manufacturing company. 2 One materials invoice showing delivery of material on the last day of the financial period along with a completed goods received note. Candidates should be given a partially completed Stores Record Card(s) to complete or a completed Store Record Card to check for accuracy and amend as required 3 Candidates should be given information relating to payroll calculations, eg clock cards, time sheets, wages analysis, etc. The information may be complete or incomplete. Candidates will be required to either compute wage costs and identify direct and indirect costs or check the documentation and amend as required Part 2: Narrative Section (divided into two sections) Section A — Financial Accounting The three questions given to candidates should cover three of the following topics: a Users of Financial Information and Interpretation of Final Accounts b Preparation of Final Accounts and Year End Adjustments c Financial Accounting Software Packages d Accounting Control Mechanisms e Distinction between Financial and Cost Accounting Section B — Management Accounting The three questions given to candidates should cover three of the following topics: a The Theory and Practice of Budgeting b Cost Behaviour c Costing Systems d The use of IT to assist in the provision of Management Information e Distinction between Cost and Financial Accounting The examination will be marked out of 100. Assessors will aggregate the marks achieved by the candidate to arrive at an overall mark for the examination. Assessors will then assign a grade to the candidate for this Graded Unit based on the following grade boundaries: A = 70% — 100% B = 60% — 69% C = 50% — 59% HN Graded Unit (F8KE 34): Accounting: Graded Unit 1 4
  • 54.
    Higher National GradedUnit specification: instructions for designing the assessment task and assessing candidates (cont) Guidance on grading candidates Candidates who meet the minimum Evidence Requirements will have their achievement graded as a C (competent), A (highly competent), or B (somewhere between A and C). The grade related criteria to be used to judge candidate performance for this Graded Unit is specified in the following table: Grade A Grade C Is an exam script which consistently: Is an exam script which: interprets and understands the question in a interprets and understands the question in a way which demonstrates insight and clear way which enables the candidate to meet the understanding of issues and relationships basic criteria required answers demonstrate a comprehensive answers demonstrate a limited analysis analysis and evaluation of relevant evaluation and explanation of the question information and other relevant information responses are logically structured and responses are uneven and convey limited coherently expressed demonstrating understanding although some relevant points consistent use of correct terminology are made is clear and well structured throughout with is satisfactorily structured with language and language and terminology used of a terminology used adequate, although not consistently high standard in terms of level, always consistent, in terms of level, accuracy accuracy and technical content and technical content consolidates and integrates required consolidates and integrates required knowledge and skills linking concepts and knowledge and skills but may lack continuity ideas and relating answers explicitly to the and consistency and fail to show clear links question to concepts and ideas convincingly argues and shows links argues and justifies conclusions in an between discussions and conclusions acceptable way but these conclusions may demonstrating comprehensive knowledge lack reasoned understanding, may not link and understanding as well as analysing and well to discussions and may show limited evaluation skills knowledge provides evidence of possible alternative is likely to show one approach and limited approaches and arguments as well as understanding of different interpretations understanding of different interpretations HN Graded Unit (F8KE 34): Accounting: Graded Unit 1 5
  • 55.
    Higher National GradedUnit specification: instructions for designing the assessment task and assessing candidates (cont) 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 This Unit is designed to assess the candidate’s ability to integrate knowledge and understanding across the mandatory Units F7JV 34: Recording Financial Information, F7JT 34: Preparing Final Accounts, F7JP 34: Using Financial Accounting Software, F7JS 34: Management Accounting Using Information Technology, and F7JR 34: Cost Accounting. 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 HN Graded Unit (F8KE 34): Accounting: Graded Unit 1 6
  • 56.
    General information forcandidates This Graded Unit is a mandatory element of the HNC Accounting Group Award and is designed to assess your ability to integrate and apply knowledge across the mandatory Units — F7JV 34: Recording Financial Information, F7JT 34: Preparing Final Accounts, F7JP 34: Using Financial Accounting Software, F7JS 34: Management Accounting Using Information Technology, and F7JR 34: Cost Accounting. This Graded Unit is assessed by a closed-book examination of three hours. The examination consists of two parts: Part 1: Computational (60%) Purchase of materials Wages analysis Ledger Accounts and Trial Balance Preparation of Final Accounts Part 2: Narrative (40%) Financial Accounting Management Accounting The Graded Unit is a mandatory element of the HNC Accounting Group Award. Grades will be awarded on the following bases: A = 70% — 100% B = 60% — 69% C = 50% — 59% HN Graded Unit (F8KE 34): Accounting: Graded Unit 1 7
  • 57.
    Higher National Unitspecification General information for centres Unit title: Recording Financial Information Unit code: F7JV 34 Unit purpose: This Unit is designed to enable candidates to develop their manual book-keeping skills. It will give them the knowledge needed to record financial information, using a double entry book-keeping system, up to trial balance. The Unit will also enable candidates to complete a VAT Return and incorporate control mechanisms into the book-keeping system. 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 to those with appropriate work experience and who wish to formalise their book-keeping skills. On completion of the Unit the candidate should be able to: 1 Record financial transactions in books of original entry 2 Record financial transactions in a double entry book-keeping system and extract a trial balance 3 Complete a VAT Return 4 Incorporate control mechanisms into a book-keeping system 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 be competent in numeracy and communication at SCQF level 5 or have similar qualifications or experience. Core Skills: The achievement of this Unit gives automatic certification of the following: Using Number at SCQF level 5 There are also opportunities to develop aspects of the Critical Thinking component of the Core Skill Problem Solving at SCQF level 4 in this Unit, and these are highlighted in the Support Notes of this Unit specification. Context for delivery: If this Unit is delivered as part of a Group Award, it is recommended that it should be taught and assessed within the subject area of the Group Award to which it contributes. HN Unit (F7JV 34): Recording Financial Information 1
  • 58.
    General information forcentres (cont) Assessment: This Unit could be assessed by four separate assessments. Alternatively, it could be assessed by combining the assessment of Outcomes. 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 Core Skill component of Using Number 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 instruments(s) you intend to use to ensure that the Core Skill is still covered. HN Unit (F7JV 34): Recording Financial Information 2
  • 59.
    Higher National Unitspecification: statement of standards Unit title: Recording Financial Information Unit code: F7JV 34 The sections of the Unit stating the Outcomes, Knowledge and/or Skills, and Evidence Requirements are mandatory. Outcome 1 Record financial transactions in books of original entry Knowledge and/or Skills Financial transactions VAT on financial transactions Books of original entry Evidence Requirements Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills by showing that they can: Record a minimum of 20 financial transactions, covering revenue and capital items, in the relevant books of original entry. — Details of transactions contained within sales and purchase invoices, sales and purchases credit notes, bank transactions received and paid, cash received and paid. — Details of transactions should be recorded in the Sales, Sales Returns, Purchases, and Purchases Returns day books, and Cash Book. Account for VAT on these transactions in the books of original entry. Transactions should cover standard rated, zero rated and exempt items. Total day books and balance cash book. The evidence should be generated under closed book supervised conditions. Figures must be accurate within a tolerance of three arithmetic or computational errors, with a maximum of two errors of principle. Assessment Guidelines This Outcome may be assessed separately or combined with the assessment of Outcome 2. It is recommended that the assessment of this Outcome be completed within one hour. The assessment could be presented as a case study with candidates recording the financial transactions of a business, for one month, in the appropriate books of original entry. Candidates may be provided with appropriate accounting stationery. HN Unit (F7JV 34): Recording Financial Information 3
  • 60.
    Higher National Unitspecification: statement of standards (cont) Unit title: Recording Financial Information Outcome 2 Record financial transactions in a double entry book-keeping system and extract a trial balance. Knowledge and/or Skills Double entry book-keeping Ledger accounts Trial balance Evidence Requirements Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills by showing that they can: Post financial transactions from the books of original entry - Sales, Sales Returns, Purchases, Purchases Returns and Cash Book - to sales, purchase and general ledger accounts applying double entry book-keeping principles. Balance the ledger accounts for assets, liabilities, income and expenses. Extract a trial balance from the ledger accounts. The evidence should be generated under closed book supervised conditions. Figures must be accurate within a tolerance of three arithmetic or computational errors, with a maximum of four errors of principle. Assessment Guidelines This Outcome may be assessed separately or combined with the assessment of Outcome 1. It is recommended that the assessment of this Outcome be completed within one hour. The assessment could be presented as a continuation of the case study from Outcome 1. Candidates may use any acceptable ledger account layout (T accounts or running balance). Candidates may be provided with appropriate accounting stationery. HN Unit (F7JV 34): Recording Financial Information 4
  • 61.
    Higher National Unitspecification: statement of standards (cont) Unit title: Recording Financial Information Outcome 3 Complete a VAT Return Knowledge and/or Skills VAT Inputs and Outputs VAT Return Evidence Requirements Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills by showing that they can: Calculate the figures required for a VAT Return from the books of original entry for a minimum of one month. Complete a VAT Return. The evidence should be generated under open-book supervised conditions. Figures must be accurate within a tolerance of three 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 continuation of the case study from Outcomes 1 and 2. Using the corrected books of original entry, and referring to ledger accounts where appropriate, candidates could extract and total input VAT, output VAT, total relevant inputs and total relevant outputs. Finally candidates could use these totals to complete a VAT Return. Outcome 4 Incorporate control mechanisms into a book-keeping system. Knowledge and/or Skills Bank reconciliation Correction of errors Suspense account Evidence Requirements Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills by showing that they can: Reconcile a cash book with a bank statement, and prepare a bank reconciliation statement. A minimum of six different anomalies covering outstanding lodgements, unpresented cheques, standing orders, direct debits, charges, errors in cash book should be included in the reconciliation. Prepare journal entries to correct eight different types of errors in ledger accounts, four of which should affect a suspense account. Open, post to and clear a suspense account. HN Unit (F7JV 34): Recording Financial Information 5
  • 62.
    Higher National Unitspecification: statement of standards (cont) Unit title: Recording Financial Information The evidence should be generated under open-book supervised conditions. Figures must be accurate within a tolerance of three 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. HN Unit (F7JV 34): Recording Financial Information 6
  • 63.
    Administrative Information Unit code: F7JV 34 Unit title: Recording Financial Information Superclass category: AK 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. HN Unit (F7JV 34): Recording Financial Information 7
  • 64.
    Higher National Unitspecification: support notes Unit title: Recording Financial Information 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 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 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. Outcome 1 covers the recording of financial transactions in the books of original entry. Cash and credit transactions Capital and revenue items Documents involved in transactions — sales invoices, purchases invoices, sales credit notes, purchases credit notes, bank transactions received and paid, cash received and paid VAT — standard and zero rates; exempt Day Books — Sales, Sales Returns, Purchases, Purchases Returns, Cash Book Outcome 2 covers the recording of financial transactions in a double entry book-keeping system and extracting a trial balance. Double entry book-keeping principles Ledger accounts — assets, liabilities, income and expenses Ledger accounts — T accounts or running balance Ledgers — Sales, Purchases, General Preparation and purpose of trial balance Outcome 3 involves the completion of a VAT Return. VAT Inputs and Outputs Total relevant inputs and total relevant outputs Completion of VAT Return HN Unit (F7JV 34): Recording Financial Information 8
  • 65.
    Higher National Unitspecification: support notes (cont) Unit title: Recording Financial Information Outcome 4 covers control mechanisms which may be incorporated into a book-keeping system. Bank reconciliation — updating of Cash Book; bank reconciliation statement Correction of errors — use of journal to correct errors; errors not affecting agreement of trial balance (error of commission, error of omission, error of principle, compensating error, error of original entry, complete reversal of entry); use of suspense account in correction of errors affecting agreement of trial balance 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/D 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 manual book-keeping using double entry principles. Candidates will then apply these skills in a practical situation. It will also give candidates knowledge and skills in the completion of a VAT Return and the incorporation of control mechanisms into the book-keeping system. The assessments could be designed around one case study. This could consist of a sole trader where the candidates start the process by recording financial transactions in the books of original entry, posting these transactions to ledger accounts and then preparing a trial balance. Thereafter candidates could use the same books of original entry to prepare a VAT Return. Finally, candidates gain an appreciation of control mechanisms by preparing a bank reconciliation statement and correcting errors. Each Outcome could be assessed separately or the assessment of Outcomes 1 and 2 could be combined. All evidence should be produced under supervised conditions. The evidence for Outcomes 1 and 2 will be produced under closed book supervised conditions and for Outcomes 3 and 4 under open book supervised conditions. Opportunities for developing Core Skills The achievement of this Unit gives automatic certification of the Using Number component of the Core Skill Numeracy at SCQF level 5. Throughout all 4 Outcomes of the Unit, candidates apply a wide range of numerical skills to practical tasks. 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 particular, in Outcome 4 candidates are investigating reasons why a straightforward problem with the book-keeping system has arisen. Thereafter they are carrying out the necessary steps to deal with the problem by preparing bank reconciliation statements and journal entries to correct errors in the ledger accounts and suspense account. HN Unit (F7JV 34): Recording Financial Information 9
  • 66.
    Higher National Unitspecification: support notes (cont) Unit title: Recording Financial Information 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. HN Unit (F7JV 34): Recording Financial Information 10
  • 67.
    General information forcandidates Unit title: Recording Financial Information This Unit is designed to enable you to develop manual book-keeping skills. In Outcome 1 you will learn how to record financial transactions in the books of original entry of a business. This will cover sales and sales returns, purchases and purchase returns and cash and bank receipts and payments. VAT will be recorded and accounted for. You will learn how to distinguish between cash and credit transactions and capital and revenue expenditure. You will write up the day books and cash book of the organisation to record these transactions. Outcome 2 covers the double entry book-keeping system which is fundamental to book-keeping and accounts. You will learn how every transaction affects two items and how to record these in ledger accounts. You will also learn how to compile a Trial Balance to check the accuracy of the double entries. In Outcome 3 you will look at VAT. You will learn about the rates of VAT and how to complete a VAT Return from the books of original entry. Outcome 4 looks at control mechanisms within a book-keeping system. You will learn how to reconcile the cash book balance with the bank statement and correct errors in the book-keeping records. Each Outcome may be assessed separately or the assessments may be combined. The 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. HN Unit (F7JV 34): Recording Financial Information 11
  • 68.
    Higher National Unitspecification General information for centres Unit title: IT in Business: Spreadsheets Unit code: F84V 34 Unit purpose: This Unit is designed to allow candidates to develop an understanding of spreadsheet design and how to use spreadsheet features and functions for practical and effective use. It is relevant to candidates wishing to develop their knowledge of spreadsheets as a tool to help provide solutions to common business problems. On completion of the Unit the candidate should be able to: 1 Create a spreadsheet design to provide solutions for a business scenario. 2 Present spreadsheet data in graphical form and interpret the results. 3 Provide solutions to a business scenario using spreadsheet statistical functions. 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, it would be beneficial if candidates have achieved the Unit IT in Business – Word Processing, Spreadsheets and Databases: An Introduction (DE24 33) or the NQ Unit Information Technology for Administrators (DM3R 11) or equivalent or relevant work experience. It would be beneficial if candidates have some competence in Numeracy at SCQF level 4 and Information and Communication Technology at SCQF level 5. This may be demonstrated by possession of a relevant Unit or relevant work experience. Core Skills: The achievement of this Unit gives automatic certification of the following: Numeracy at SCQF level 5 Critical Thinking at SCQF level 5 There are also further opportunities to develop the Core Skill of Information and Communication Technology and the Core Skill components Planning and Organising and Reviewing and Evaluating at SCQF level 5. HN Unit (F84V 34): IT in Business: Spreadsheets 1
  • 69.
    General information forcentres (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 Group Award to which it contributes. Assessment: Evidence for this Unit should be generated through assessment undertaken in open- book conditions. Evidence can be generated through assessment of a given case study or a real work place situation. It is recommended that a thematic approach to assessment be adopted. Although each Outcome can be assessed independently, it is recommended that Outcome 1 is assessed by means of a case study the remaining Outcome 2 and Outcome 3 can be assessed together. A portfolio of evidence will be compiled and this may be presented electronically or in hard copy format. Interpretation of results should demonstrate the candidate understands the basic concepts and has the ability to apply these in a practical situation. An Assessment Exemplar has been produced to indicate the national standard of achievement required at SCQF level 7. HN Unit (F84V 34): IT in Business: Spreadsheets 2
  • 70.
    Higher National Unitspecification: statement of standards Unit title: IT in Business: Spreadsheets Unit code: F84V 34 The sections of the Unit stating the Outcomes, Knowledge and/or Skills, and Evidence Requirements are mandatory. The sections of the Unit stating the Outcomes, Knowledge and/or Skills, and Evidence Requirements are mandatory. Outcome 1 Create a spreadsheet design to provide solutions for a business scenario Knowledge and/or Skills Spreadsheet design Functions Formulas Cell references Cell formats Comments Macro Security features for data protection Evidence Requirements Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills by showing that they can: create a spreadsheet using three interconnected worksheets to solve a business problem create four simple formulas and two complex formulas to include one occurrence of each of the following: add, subtract, multiply, divide in formulas and/or functions apply one occurrence of the following forms of cell referencing: relative, absolute, named cell, named range, 3-D apply two functions: =SUM and =IF apply appropriate cell formatting to assist the analysis/reading of the worksheets using one occurrence of the following: number, font enhancement, conditional formatting apply two spreadsheet features to control the worksheet view record and run one macro to assist with repetitive tasks protect data using two different built in security features HN Unit (F84V 34): IT in Business: Spreadsheets 3
  • 71.
    Higher National Unitspecification: statement of standards (cont) Unit title: IT in Business: Spreadsheets Assessment Guidelines Assessment may be undertaken in open-book conditions. This Outcome could be assessed by way of a scenario where a business problem has to be analysed and a possible solution provided. There may be opportunities to assess the Outcome using VLE, hardcopy or electronic copies. The Unit may be assessed holistically by a case study of an organisation, or a real work place situation. Single or multiple spreadsheet files may be used to incorporate the Evidence Requirements for Outcomes 1, 2 and 3. The features used in Outcome 1 may provide the data required to support evidence generation for Outcomes 2 and 3. If integrating assessment across Outcomes 1, 2 and 3, candidates should be given the opportunity to correct any errors within their spreadsheet after summative assessment of Outcome 1 has taken place before commencing Outcomes 2 and 3. Outcome 2 Present spreadsheet data in graphical form and interpret the results Knowledge and/or Skills Graphical representation of a single data series Graphical representation of multiple data series Chart enhancements Analyse data Evidence Requirements Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills by showing that they can: create an appropriate chart to represent a single data series create an appropriate chart to represent a multiple data series apply two chart enhancements (the two enhancements can be in the same chart) analyse each chart providing a description of the chart, an explanation of the relevance of the evidence and draw conclusions supported by the information to resolve a business problem Assessment Guidelines Assessment may be undertaken in open-book conditions. Screen capture could be used to demonstrate evidence if appropriate. If Outcomes 1 and 2 are assessed holistically, candidates may use worksheet(s) created in Outcome 1 as the basis for evidence in Outcome 2, once errors in Outcome 1 have been corrected and Outcome 1 deemed fit for purpose. If Outcome 2 is assessed separately the candidate should be provided with information of a similar size and format to that of Outcome 1. HN Unit (F84V 34): IT in Business: Spreadsheets 4
  • 72.
    Higher National Unitspecification: statement of standards (cont) Unit title: IT in Business: Spreadsheets Candidates may produce a print ready portfolio of spreadsheet analysis to provide solutions to the business problem(s). This evidence may be produced in a short report, attaching spreadsheet results, which may be presented in any suitable way for example printed, submitted electronically, written, oral or signed. Outcome 3 Provide solutions to a business scenario using spreadsheet statistical functions Knowledge and/or Skills Measures of central tendency Summarised data Frequency distribution Standard deviation Evidence Requirements Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills by using built-in statistical functions within a spreadsheet application to provide solutions to a business scenario showing that they can: perform calculations using three methods of averaging — mean, median, mode within the same data set summarise data using three functions to calculate: Largest number in a range; Smallest number in a range; Number of entries in a range prepare a frequency distribution table and represent the results graphically calculate one standard deviation analyse all data results providing a description, an explanation of the relevance of the evidence and draw conclusions supported by the information to resolve a business problem Assessment Guidelines Assessment may be undertaken in open-book conditions. If Outcomes 2 and 3 are assessed holistically, candidates may use the spreadsheet created in Outcome 1 as the basis for the evidence required in Outcome 3. If Outcome 3 is assessed separately, prepared files should be given to the candidate to complete the calculations. Candidates can analyse the results of spreadsheet calculations and by means of short response recommend a course of action. Short response for the resultant findings should include the purpose, relevance and importance of the statistical information used in response to a business problem or problems presented in the case study. Candidates may produce a print ready portfolio of evidence to provide solutions to the business problem(s). This evidence may be produced in a short report, attaching spreadsheet results, which may be presented in any suitable way for example printed, submitted electronically, written, oral or signed. HN Unit (F84V 34): IT in Business: Spreadsheets 5
  • 73.
    Administrative Information Unit code: F84V 34 Unit title: IT in Business: Spreadsheets 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. HN Unit (F84V 34): IT in Business: Spreadsheets 6
  • 74.
    Higher National Unitspecification: support notes Unit title: IT in Business: Spreadsheets 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 This Unit is designed to provide candidates with the knowledge and skills for further study or employment in an administrative or IT environment. This is a mandatory Unit within the HNC/HND Administration and Information Technology (G9M7 15 and G9M8 16) but is also included within other HN Group Awards and can be taken as a stand-alone Unit. This Unit embeds part of the underpinning knowledge required for Administration and Information Technology Graded Unit 1 (F84W 34). As Candidates work through this Unit they should be made aware that topic areas covered may be assessable in Graded Unit 1. Candidates could then consider when and why they would use spreadsheet functions and features and identify relevant business examples to support revision for Graded Unit 1. Candidates should be aware of the principles and purpose of good spreadsheet design and be able to apply spreadsheet functions, formulas, format and charting features to recommend numerical solutions for situations commonly found within today’s business environment. Topics could include the design of Budget templates (wedding, household, retirement, marketing), Financial templates (mortgage affordability, early retirement scenario, property portfolios) and Business templates (restaurant menu and recipe costing, monthly profit and loss statements, inventory management). Candidates should be able to prepare financial and statistical reports to generate information in support of managerial decision-making. This Unit should help develop critical thinking skills important in today’s business environment. Candidates should analyse data using spreadsheet application software and use critical thinking and analysis to find efficient and effective solutions to solve business problems. Candidates should therefore be competent in methods of problem solving and be able to select appropriate spreadsheet formulas and functions that will produce meaningful results. Candidates should be able to demonstrate that they can explain the results of their calculations, therefore it is important that candidates can explain what the graph/chart/table is representing and so be familiar with common terminology to describe patterns, direction of tendency and exceptions. Outcome 1 Candidates will be expected to create an electronic spreadsheet that simulates a given paper-based example and interpret the results of formulas for the purpose of decision-making. Spreadsheets are frequently used for financial information because of their ability to re-calculate formulas automatically. Candidates should be encouraged to make use of the Function feature of spreadsheet software, demonstrate that they have applied the rules for entering arithmetic formulas (BODMAS) and can explain the results of calculations such as totals, percentage of totals and conditional statements. Simple formula would involve the use of one operator. Complex formula would involve the use of two or more operators that apply BODMAS rules. As formulas become more complicated, the harder they are to check, therefore candidates should be introduced to displaying formulas in the formula bar and displaying formulas inside cells. HN Unit (F84V 34): IT in Business: Spreadsheets 7
  • 75.
    Higher National Unitspecification: support notes (cont) Unit title: IT in Business: Spreadsheets Candidates should be familiar with the rules of conditional logic and the application of conditional formats to visually explore and analyse data, detect critical issues and identify patterns and trends important to a business. Some examples could include comparison of worker productivity, sales figures or product performance. Before sending a workbook that contains large amounts of data or charts to print candidates should be able to fine-tune the display of data to achieve professional-looking results. Candidates will be expected to adjust window options to display spreadsheet data as formulas or resultant data values when required. Outcome 1 may be assessed via an electronic format. This would allow the assessor to ensure use of conditional formatting and insertion of comments. Assessing documents electronically provides centres with the option of assessment via e-portfolios. Screen capture could also be used to demonstrate Evidence Requirements where appropriate. Outcome 2 The resulting spreadsheet data created in Outcome 3 can be represented graphically to provide evidence for Outcome 2. Candidates should be familiar with various chart types, what chart type/subtype is appropriate to any given situation for the comparison and/or distribution of data and that a pie chart should only be used to show the breakdown of a recognisable whole. Recommended areas for learning include, charting single and multiple data series where the data source is in adjacent and non adjacent columns. Extensive use of the chart toolbar features should be made in order to format the data series and add meaning to chart elements to enhance the presentation of each chart. Outcome 3 Candidates should have an appreciation of statistical terminology used to describe and compare data sets such as mean, median, mode collectively known as measures of central tendency. Candidates will be required to use various functions to manage and analyse data within a tabular data set. A suggestion to introduce the merit of CountIF and DcountA functions may be relevant at this point. Centres should choose the most suitable functions in relation to the Case Study or workplace situation. If introducing candidates to the DcountA function, there may be opportunity for discussion on the typical layout of a database and how field names can be synonymous with column headers and records with contents of rows as the DcountA function counts the non-blank cells in a selected range that match the conditions in a specified criteria. Candidates will be expected to use three methods of averaging data (mean, median, mode) alongside chosen Count function for the preparation of a grouped frequency table. HN Unit (F84V 34): IT in Business: Spreadsheets 8
  • 76.
    Higher National Unitspecification: support notes (cont) Unit title: IT in Business: Spreadsheets It is important for candidates to understand the links between these elements of statistics and how they can be brought together for a final analysis. Candidates should appreciate the link between using the mean and standard deviation together to provide more meaningful comparative statistical information for decision making in business. Examples of tasks commonly found within the workplace could include the collection and analysis of questionnaire data, of statistics to monitor website activity or performance indicators for government organisations such as health boards and employment agencies. Guidance on the delivery and assessment of this Unit Opportunities exists for integration of delivery and assessment with the Unit Recording Financial Transactions (F847 33) when delivered as part of the HNC Administration and Information Technology (G9M7 15) Group Award. Source business documents could be produced using a spreadsheet application. Delivery can be enhanced through the use of prepared and half-completed spreadsheets which candidates can recall from file and amend according to instructions. A wide variety of examples are available from books and websites. The adaptation of existing materials could include problems involving insurance, calculation of hire purchase, payslips, profit and loss returns and where possible the solutions to these problems should be further analysed using diagrammatic and statistical means. Outcome 1 Candidates could produce a worksheet from a given set of tabular data and examine the factors that constitute good spreadsheet design practice. These could be compared with some examples of poor practice to help candidates avoid similar pitfalls as they work through the design process. Candidates could use a wide range of formatting and display features to enhance the presentation of spreadsheet data, as with a worksheet with row after row of numbers, it is not always easy to see patterns and trends. Suitable fonts, borders, backgrounds and colours for contrast could be chosen for ease of data entry. User-friendly features to help navigation between multiple worksheets and customisation of window elements should be incorporated into the spreadsheet design and ought to be considered prior to performing simple consolidation exercises. In addition the generation of macros could provide a shortcut to repetitive tasks such as the formatting cell ranges or standardising print options. Outcome 2 It is important that candidates can explain what the graph/chart/table is representing and therefore be familiar with common adjectives to describe patterns, direction of tendency and exceptions. Candidates could be encouraged to use titles and the axes to illustrate what the graph/chart/table represents. Consideration should be given to the axes titles and units and although not always necessary to include in the description, could help avoid errors when interpreting the data. If there is an obvious trend, it is important to mention this and any other significant factors such as the largest and the smallest number. Most graphs will fluctuate in some way or another so once a trend has been identified it is also necessary to point out obvious exceptions. Finally, candidates will be expected to draw conclusions supported by the information presented in the graphs/charts/tables. HN Unit (F84V 34): IT in Business: Spreadsheets 9
  • 77.
    Higher National Unitspecification: support notes (cont) Unit title: IT in Business: Spreadsheets Outcome 3 Candidates will be required to organise data to determine the arithmetic Mean, Mode, Median of a data set comprising of an even or odd number of values. By doing so candidates will appreciate how data is centred around specific values and progress to examine how the data spreads out from these measures of central tendency. It may be advantageous for candidates to follow a manual worked example for mean and standard deviation, prior to using an electronic spreadsheet. The same data could be entered or imported into a spreadsheet application and existing statistical functions could be selected to perform calculations on the data. Opportunities for developing Core Skills Numeracy at SCQF level 5 Th e gen er a l skill for t he Using Number Cor e Skill com pon ent is Carry out calculations. Th e r equ ir em en t s of t h e assessm en t for Ou t com e 1 specify t h a t t h e ca n didat e will cr eat e a spr eadsheet docum en t a n d demonstrate that they have applied the rules for entering arithmetic formulas (BODMAS) and can explain the results of calculations such as totals, percentage of totals and be familiar with the rules of conditional logic. The other general skill for the ‘Using Number’ component is Work with statistical data. The requirements of the assessment for Outcome 3 specify that the candidate should make use of each of the statistical functions (Mean, Median, Mode, Standard deviation, and Frequency distribution) and then summarise findings based on the results. Th e gen er a l skills for t he ‘Using Graphical Information’ com pon en t a r e Read graphs and P r esen t in for m at ion in gr a ph ica l for m . Th e r equ ir em ent s of t h e a ssessm en t for Ou t com e 2 specify t h at t he ca ndida t e ca n pr epa r e a ppr opr ia t e ch a r t s fr om given spr ea dsh eet da t a , extract relevant information from each chart type and provide meaningful comment. Additionally a requirement of Outcome 3 specifies that the candidate should prepare a graphical representation of a frequency distribution table. Problem Solving at SCQF level 5 Th e r equ ir em ent s of t he a ssessm en t for Ou t com e 1 specify t h at t h e can dida t e will design , cr ea t e a n d pr epa r e a spr ea dsh eet docum en t for dist r ibu t ion. Th e gen er a l skill for t h e ‘Cr it ica l Th ink in g’ com pon ent is Analyse a situation or issue. Th e ca ndida t e sh ou ld be en cou r a ged t o a n a lyse da t a in a scen a r io t o assess wh at da t a is r eleva nt , iden t ify t h e com pon en t fa ct or s t o inclu de in t he in it ia l spr ea dsh eet design, con sider t h e ben efit s a nd lim it at ion s of t he pr oposed design , r esu lt in g in sin gle or m u lt iple spr eadsh eet files wh ich con t ain sin gle or m u lt iple wor ksh eet s t o pr ovide sum m ar y infor m a t ion for m a n a gem en t . HN Unit (F84V 34): IT in Business: Spreadsheets 10
  • 78.
    Higher National Unitspecification: support notes (cont) Unit title: IT in Business: Spreadsheets Th e gen er a l skill for t he ‘P la n n in g a nd Or ga n isin g’ com pon ent is Plan, organise and complete a task. Th e ca ndida t e sh ou ld be en cou r aged t o develop a pla n eviden ced by a m odel specifica t ion docu m en t t o in for m t h e design of t h e spr ea dsh eet . Addit ion a lly t h e cr ea t ion of a m a cr o would r equ ir e a set pr ocedur e list wh ich cou ld be eviden ced by dr aft n ot es of m acr o in st r u ct ion s or visu a l basic code. Ca n didat es shou ld pr epa r e a docu m ent for dist r ibut ion in wh ich t h ey will iden t ify a n d obt a in r esour ce s as t h ey prepare one complete worksheet of data for printing with fully formatted numerical values displayed as values and prepare one selected print area of worksheet data for printing with formulas displayed. Conditional formatting will be used to identify specific areas that might be of interest to management. The result of the Outcome will be a ‘fit for purpose’ spreadsheet to provide management with summary information. The general skill for the ‘Reviewing and Evaluating’ component is Review and Evaluate a problem solving activity. Outcomes 2 and 3 the candidate will review the results of charts and statistical data, providing a description of the chart/data, an explanation of the relevance of the evidence in terms of patterns, trends, exceptions and draw conclusions supported by the summary information to resolve a business problem. Information and Communication Technology at SCQF level 5 Th e deliver y a n d a ssessm en t of t h is Unit m a y con t r ibu t e t owa r ds t h e com pon ent s ‘Accessing Information’ a nd ‘Processing Information‘ of t he Cor e Skill ICT a t SCQF level 5. Th e gen er a l skills for t he ‘Accessing Information’ com pon ent s a r e ‘Use ICT to locate information’ and ‘Keep data secure’. Th e r equ ir em en t s of t h e a ssessm en t for Out com e 1 specify t h a t t h e ca n dida t e will u se spr eadsh eet a pplicat ion soft wa r e to en t er a nd edit da t a in t h e cr ea t ion of sin gle or m u lt iple spreadsheet files. In a ddit ion t h e ca n dida t e will dem onst r at e t h e pr ot ect ion of dat a usin g a minimum of 2 security features (unlock specific areas of a protected worksheet, add a password to control access to protected elements or worksheet, set read-only recommendation for a workbook, protect the structure and windows of a workbook, use digital signatures with a macro in a workbook). Th e gen er a l skill for t he ‘Processing Information ‘com pon ent is ‘Carry out ICT activities’. ICT a ct ivit ies ar e ca r r ied out t h r ou gh ou t assessm ent for Ou t com es 1 t o 3. Th e ca n dida t e will be r esponsible for effect ive u se of h a r dwar e devices a n d spr ea dsh eet applica t ion soft war e as they prepare a spreadsheet document for distribution. Open learning If this Unit is delivered by open or distance learning methods, additional resources will be required for candidate support, assessment and quality assurance. It would require planning by the centre to ensure the sufficiency and authenticity of candidate’s evidence. 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 HN Unit (F84V 34): IT in Business: Spreadsheets 11
  • 79.
    General information forcandidates Unit title: IT in Business: Spreadsheets Along with word processing packages, the most widely used software application is the spreadsheet. This Unit will introduce you to the different uses of spreadsheets, ranging from creating financial reports to handlings lists of data and preparing charts to provide solutions to common business problems. Outcome 1 concentrates on spreadsheet design and creation. You will create relevant single or multiple spreadsheet files and consolidate the data within related worksheets to provide summary information for a business problem. Outcome 2 develops skills for the graphical representation of data. You will use charting and enhancement features to identify and describe patterns, direction of tendency and exceptions as you draw conclusions based on a common business problem. Outcome 3 develops the use of spreadsheet statistical functions for the numerical summary of data to aid decision-making. You should use frequency distribution tables and statistical functions to summarise information and then draw conclusions based on a common business problem. This Unit should develop critical thinking skills as you should be able to judge the appropriate spreadsheet formulas and functions for the presentation and summary of data to provide solutions to a given situation and communicate their findings to aid problem solving. The achievement of this Unit will give automatic certification of the following: The Core Skill of Numeracy and the Core Skill component of Critical Thinking at SCQF level 5 You may also have opportunities to develop the Core Skill of Information and Communication Technology and the Core Skill components Planning and Organising and Reviewing and Evaluating at SCQF level 5. HN Unit (F84V 34): IT in Business: Spreadsheets 12