Management Accounting

Exam Description

The Management Accounting Exam tests competencies in 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 costs through a manufacturer’s accounts and explain cost allocation to calculate product cost.
2. Apply 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. Understand cost-volume-profit analysis and its use for planning and control.
5. Understand segment reporting, transfer pricing, absorption costing, variable costing, and the calculation and importance of Return on Investment (ROI).
6. Understand the budgeting concept, and 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. Understand the role of relevant and irrelevant costs in decision making. Apply differential analysis in various business situations.
9. Evaluate capital investment proposals using payback period, internal rate of 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.

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