Exam Unit: Management Accounting (1.2)

Learning Outcome

To demonstrate an understanding of the reasons for maintaining management accounting systems and financial control. The Learner will be able to demonstrate sound knowledge of the selection of appropriate management accounting systems and their application to a particular business situation.

Introduction to Management Accounting:
1. Accounting
2. Cost Units
3. Classification of CostsCost Behaviour:
1. Analysis of Costs
2. Cost Estimation (Prediction)Overhead Costs:
1. Overheads
2. Accounting for Overheads
3. Allocation and Apportionment
4. Absorption
5. Under and Over AbsorptionMarginal Costing & Absorption Costing:
1. Marginal Costing
2. Marginal Absorption Costing ComparedAccounting & Control of Materials:
1. Purchasing of Materials
2. Cost Collection
3. Costing Material Issues
4. Checking the Level of Stock
5. Materials Classification and CodingStock Control:
1. Investment in Stock
2. Practical Stock Control Systems
3. Re-Order Level System Control Levels
4. Theoretical Stock Control – Economic Order Quantity (EOQ)Accounting & Control of Labour:
1. Labour Documentation
2. Payroll
3. Remuneration Methods
4. Incentive Schemes
5. Labour Cost Accounting
6. Labour Cost Control ReportsRelevant Cost Concepts:
1. The Decision Making Process
2. Relevant Costs
3. Decision Making with Relevant CostsCost Volume Profit Analysis:
1. The Contribution Concept
2. Cost-Volume-Profit (CVP) Analysis
3. Break Even Charts
4. Assumptions and Limitations of CVP AnalysisLimiting Factor Analysis:
1. Decision Making Objectives
2. Single Scarce Resource Problems
3. Demand Constraints
4. Applying Limiting Factor Analysis to Make or Buy Decisions
Budget Theory & Functional Budget Preparation:
1. Budget Theory
2. Budget Preparation
3. Functional Budgets
4. Budgeted Profit and Loss AccountCash Budgets and IT:
1. Cash Budgets
2. The Master Budget
3. IT and BudgetingFlexible Budgets:
1. Reporting Actual against Budget
2. Flexible Budgets
3. Budget VarianceStandard Costs:
1. Standard Costs
2. Types of Standards
3. Preparation of Standard CostsVariance Analysis:
1. Basic Cost Variance Analysis
2. Direct Material Cost Variances
3. Raw Materials Stocks
4. Direct Labour Cost Variances
5. Overhead Variances
6. Variable Overhead Variances
7. Fixed Overhead Variances
8. Non-Production Overheads
9. Total Sales Margin Variance
10. Reconciliation of Budget and Actual Results
11. Causes of VariancesJob and Batch Costing:
1. Product Costing Methods
2. Job Costing
3. Batch CostingContract and Service Costing:
1. Basic Contract Costing
2. Attributable Profit on Uncompleted Contracts
3. Service Costing Methods
4. Service Cost Accounting Statements
5. Comparison of Manufacturing and Service CostingProcess Costing:
1. Continuous Production
2. Process Costing Losses
3. Abnormal Losses and Gains
4. Partially Processed Units
5. Opening Work-In-Process
6. Losses in Process
7. Joint Products and by-ProductsCost Bookkeeping:
1. Methods
2. Integrated Accounting Systems
3. Integrated Accounting Using Standard Costs
4. Interlocking Accounting System