Management Accounting (ACCA)
Management Accounting (ACCA)
Syllabus
Course Objectives
Understand the roles and differences of financial, cost, and management accounting, and
apply data analysis techniques for decision-making.
Comprehend cost concepts and classifications, and understand production and non-
production costs.
Learn accounting for material, labour, and overhead costs, and apply valuation methods and
cost allocations.
Apply various costing methods and understand alternative cost accounting techniques.
Course Outcomes
Differentiate between financial, cost, and management accounting, and use data analysis for
financial decisions.
Classify and analyse production and non-production costs for managerial planning.
Demonstrate proficiency in accounting for material, labour, and overhead costs.
Apply costing methods and advanced cost accounting techniques effectively.
UNIT-1
Purpose and role of cost and management accounting, difference between financial accounting with
cost and management accounting, the managerial processes of planning, decision-making and
control, difference between strategic, tactical and operational planning, distinguish between data
and information- attributes of good information, limitations of management information.
Introduction to data -machine/sensor, transactional and human/social, sources of information
(including government statistics, financial press, professional or trade associations, quotations and
price lists) uses and limitations of published information/data, Data analysis and statistical
techniques- Sampling methods- Forecasting techniques- Summarising and analysing data-
Spreadsheets.
UNIT-2
UNIT-3
UNIT-4
Syllabus
Course Objectives
Understand budgeting processes, including preparation, stages, and the use of various types
of budgets (sales, functional, cash, master) along with the concepts of 'what if' analysis and
scenario planning.
Learn the concepts and applications of flexible budgets, capital budgeting, and discounted
cash flows, including NPV and IRR calculations, and understand their role in financial
planning and control.
Develop skills in budgetary control, variance analysis, and responsibility accounting, and
prepare control reports with actionable recommendations for management.
Gain knowledge in standard costing, variance calculations, and performance measurement,
and learn to monitor and report organizational performance effectively.
Course Outcomes
Students will be able to prepare various types of budgets and perform 'what if' analysis for
effective financial planning.
Students will be able to apply flexible budgeting, capital budgeting, and discounted cash flow
techniques to assess investment viability.
Students will demonstrate proficiency in variance analysis, responsibility accounting, and
preparing management control reports.
Students will be able to calculate variances, apply standard costing principles, and measure
and report organizational performance.
Unit-1
Budgeting
Understand the use of budgets- administrative procedures used in the budgeting process- stages
in the budgeting- (including sources of relevant data, planning and agreeing draft budgets and
purpose of forecasts and how they link to budgeting) - Budget preparation- importance of the
principal budget factor- Prepare sales budgets (problems)- Prepare functional budgets (production,
raw materials usage and purchases, labour, variable and fixed overheads)- problems on cash
budgets- master budgets (statement of profit or loss and statement of financial position)-cocept of
‘what if’ analysis and scenario planning.
Unit-2
Concept of flexible budgets in control, disadvantages of fixed budgets in control- situations where
fixed or flexible budgetary control would be appropriate- Flex a budget to a given level of volume-
concept of capital budgeting- importance of capital investment planning and control- Definition and
distinguish between asset and expense items- steps involved in the preparation of a capital
expenditure budget- difference between simple and compound interest, and between nominal and
effective interest rates(problems)- compounding and discounting (problems)- net present value
(NPV) and internal rate of return (IRR) methods of discounted cash flow- Calculation on present
value using annuity and perpetuity formulae- Calculate NPV, IRR and payback (discounted and non-
discounted)- Interpret the results of NPV, IRR and payback calculations of investment viability.
Unit-3
Calculation of simple variances between flexed budgets, fixed budget and actual sales, costs and
profits-relative significance of variances- concept of responsibility accounting and its significance in
control- concept of controllable and uncontrollable costs- Prepare control reports suitable for
presentation to management (to include recommendation of appropriate control action)- .
Behavioural aspects of budgeting.
Unit-4
Concept of standard costing purpose and principles, difference between standard, marginal and
absorption costing- Variance calculations and analysis- Calculate sales price and volume variance-
Calculate materials total, price and usage variance- Calculate labour total, rate and efficiency
variance- Calculate variable overhead total, expenditure and efficiency variance- Calculate fixed
overhead total, expenditure and, where appropriate, volume, capacity and efficiency variance-
concept of Performance measurement- Performance measurement – application- Monitoring
performance and reporting.