Management Accounting
Learn to prepare and use management information for business decisions — costing, budgeting, and performance measurement.
Your Success Path
Accounting for Management
A1Data vs information and its qualities · Planning, control and decision-making · Responsibility centres (cost, revenue, profit, investment)
Sources of Data
A2Primary and secondary data · Internal and external sources · Big data and its characteristics
Cost Classification and Behaviour
A3Direct and indirect costs · Fixed, variable, semi-variable and stepped costs · Cost objects, cost units and cost equations
Presenting Information
A4Tables and charts · Choosing the right presentation · Writing reports for management
Sampling and Summarising Data
B1, B3Sampling methods · Averages and measures of dispersion · Normal distribution basics
Forecasting Techniques
B2High-low method · Linear regression and correlation · Time series and index numbers
Spreadsheets in Management Accounting
B4Spreadsheet design and formulas · Uses in budgeting and reporting · Advantages and limitations
Accounting for Materials
C1Inventory ordering and control · EOQ and reorder levels · FIFO, LIFO and weighted average valuation
Accounting for Labour
C1Remuneration methods · Labour turnover · Labour efficiency and utilisation ratios
Accounting for Overheads
C1Allocation and apportionment · Overhead absorption rates · Under- and over-absorption
Absorption and Marginal Costing
C2Contribution concept · Profit reconciliation between methods · Arguments for each method
Job, Batch and Service Costing
C3Job and batch costing · Service costing and cost units · Choosing the right method
Process Costing
C3Normal and abnormal losses · Work in progress and equivalent units · Joint and by-products
Alternative Costing Principles
C4Activity-based costing (ABC) · Target and life-cycle costing · Total quality management (TQM) costs
Budgeting: Nature and Preparation
D1–D2Purposes of budgeting · Functional and master budgets · Cash budgets
Flexible Budgets and Budgetary Control
D3, D5–D6Fixed vs flexible budgets · Budgetary control reports · Behavioural aspects of budgeting
Capital Budgeting and Investment Appraisal
D4Payback period · Net present value (NPV) · Internal rate of return (IRR)
Standard Costing and Variance Analysis
E1–E3Setting standards · Material, labour, overhead and sales variances · Reconciling budgeted and actual profit
Performance Measurement
F1–F4Financial ratios (profitability, liquidity, activity) · The balanced scorecard · Cost reduction and value analysis