Get access to latest and updated syllabus of PIPFA level 4 Management Accounting now. Here you will find detailed course content or Syllabus of PIPFA level 4 Management Accounting for upcoming attempt.
Unfortunately, PIPFA does not publish it’s own study text. But you need not to worry as you can use study texts of ICAP and/or ICMAP. You will have the advantage on other students. The reason being ICAP and ICMAP study texts are comparatively more difficult than the books recommended by PIPFA examination body.
Syllabus GRID:
Here is the grid for syllabus of PIPFA level 4 Management Accounting.
| GRID | WEIGHTAGE |
| Introduction to Management Accounting | 3 – 7 |
| Forecasting and Budgeting | 15 – 20 |
| Performance Analysis | 25 – 35 |
| Decision Making | 30 – 40 |
| Introduction to Financial Management | 10 – 15 |
| Total | 100 |
Course Outline:
The course outline of PIPFA level 4 Management Accounting for upcoming attempt gives an overview of the course .The detailed Syllabus of PIPFA level 4 Management Accounting for upcoming attempt is given below the course outline section.
Introduction to management accounting:
- Scope of management accounting
- Objectives and role of management accounting
- Limitations of management accounting
Forecasting and Budgeting
- Purpose of budgeting and forecasting
- Budget and planning process
- Revenue and production budgets
- Cash budgets
- Zero based budgeting and flexible budgets
- Budgetary controls
Performance Analysis:
- Cost, volume and profit analysis
- Break-even analysis
- Working capital management (Cash, debtor, creditors and inventory
- management techniques and policies)
- Return on capital
- Divisional performance
- Transfer pricing
- Performance analysis of non-profit and public welfare organization
Decision Making:
- Cost Concepts in decision making
• Relevant cost
• Sunk cost
• Opportunity cost / imputed cost
• Replacement cost
• Differential cost
- Pricing decisions and pricing strategies
- Make or buy decisions
- Sell or process decision
- Operate or shut down decisions
- Utilization of spare capacity
- Pricing for special orders
Introduction to Financial Management
- Concept of present value and net present value
- Capital Budgeting (Capital Budget Technique) Debt vs equity financing (Source of Financing)
Detailed Syllabus Contents:
The detailed Syllabus of PIPFA level 4 Management Accounting for upcoming attempt is given below.
Introduction to management accounting
- Explain how Management Accounting works
- Stakeholders of Management Accounting.
- Feasibility of the achievement of objective through Management Accounting
- Drawbacks of the Management Accounting
- Expectation of Stakeholders from the study of Management Accounting.
- Difference between Cost and Management Accounting.
Forecasting and Budgeting:
- Explain how budgeting process works and how it fits into overall planning and control
- Prepare forecasts on given data and assumptions using Qualitative and Quantitative methods including Time Series Models, Moving Averages and Linear Regression Analysis.
- Identify and describe different purposes of budgeting
- Identify and describe the various stages in the budgeting process
- Prepare following types of budgets:
• fixed and flexible budgets;
• sales budget;
• production budget;
• direct materials budget;
• direct labour budget;
• manufacturing overhead budget;
• inventory budget;
• cost of goods sold budget;
• selling and administrative expenses
• Master/cash budget;
• zero based budgets, and
• capital expenditure budgets;
- Discuss various approaches to Budgeting (i.e. flexible and fixed budgets, incremental budgeting, zero based budgeting, continuous (rolling) budgeting and performance budgeting
- Describe the human & motivational aspects of budgets.
Performance Analysis:
- Explain the break-even point using examples and margin of safety
- Calculate the breakeven point in quantity and amount from information provided
- Apply cost volume profit (CVP) analysis and explain its usefulness for management
Decision Making:
- Describe opportunity cost Using examples.
- Describe relevant costs using examples
- Identify the costs that are relevant to a particular decision in given data.
- Apply marginal and relevant costing concepts to analyse make or buy options
- Analyse make or buy options in case of capacity constraints
- Discuss using examples the importance of qualitative considerations in make or buy decisions.
- Perform incremental cost benefit analysis for a special order.
- Perform incremental cost benefit analysis for further processing Costs
Introduction to Financial Management:
- Explain the time value of money
- Identify and calculate relevant cash flows for investment projects.
- Calculate net present value and internal rate of return of given cash flows.
- Assess the usefulness of NPV and IRR models.
- Understand different phases
syllabus of PIPFA level 4 Management Accounting syllabus of PIPFA level 4 Management Accounting