Management Accounting

Management Accounting

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Exam Description

Management Accounting Exam tests the competencies in the area of Costing systems, Cost volume profit analysis, budgeting, planning, pricing decisions, cost management, cost allocations, standard costing, target costing, differential analysis and financial statement analysis.

Professional Exam Competencies

  1. Describe the flow of cost through a manufacturer’s accounts and explain cost allocation to calculate product cost.
  2. Apply the knowledge of job order and process costing to calculate per unit cost. Analyze performance by comparing budgeted and actual department costs.
  3. Explain why managers use value-based systems and discuss the relationship of these systems to the supply chain and value chain.
  4. Cost Volume Profit Analysis and it’s use for planning and control.
  5. Segment reporting, transfer pricing, absorption costing, variable costing and calculation & importance of Return on Investment.
  6. Budgeting concept, components of a master budget and apply knowledge to prepare  a performance report.
  7. Prepare a flexible budget and describe how managers use variance analysis to control costs.
  8. Role of relevant and irrelevant costs in decision making. Apply differential analysis in a variety of business situations.
  9. Evaluate capital investment proposals using Payback period, Internal rate return, Net present value and Profitability Index.
  10. Use the target costing concept to analyze pricing decisions.
  11. Apply analysis tools and techniques to financial statements to measure financial performance.

Recommended readings

  1. Management Accounting by Charles T. Horngren, Gary L. Sundem, William O. Stratton
  2. Management Accounting by Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura