To develop knowledge and understanding of the application of management accounting techniques to support the management processes of planning, decision-making, control and performance measurement.

Objectives

On completion of this paper, candidates should be able to:

• Identify valid, relevant data from internal and external sources
• Present cost information using appropriate methods
• Prepare forecasts of income and expenditure
• Monitor and analyze actual costs against forecasts and trends
• Compare actual costs with standard costs and analyze and explain any variances
• Prepare draft budget proposals
• Prepare and present reports comparing actual performance with planned performance for the organization or for responsibility centers and analyze any variances for management control purposes
• Prepare and monitor relevant performance indicators, interpret the results and recommend how to reduce costs and enhance value
• Make short-term decisions to enhance business performance.