Syllabus of M5 – Advanced Management Accounting

Get access to latest and updated syllabus of M5 Advanced Management Accounting now. Here you will find detailed course content or Syllabus of M5 Advanced Management Accounting for upcoming attempt.

Now you know what topics to study and practice .The next step would be to download the latest official Advanced Management Accounting Study Text. Click

to Download.

syllabus of M5 Advanced Management Accounting

Syllabus GRID:

Here is the grid of Syllabus of Advanced Management Accounting.

GRIDWEIGHTAGE
FORECASTING AND BUDGETING TECHNIQUES
1.      Forecasts
2.      Budgeting
15%
STANDARD COSTING AND VARIANCE ANALYSIS
3.      Standard Costing
4.      Variance Analysis, Interpretation and Profit Reconciliation
15%
PROJECT APPRAISAL METHODS
5.      Capital Investment decisions
6.      DCF techniques of investment appraisal
7.      Taking account of taxation and inflation
8.      Additional aspects of investment decision making
20%
COST ANALYSIS
9.      Break Even Analysis
10.   Limiting factor Analysis
15%
MODERN COSTING TECHNIQUES
11.   Marginal Cost Analysis
12.   Activity Based Costing
13.   Throughput and Back flush Accounting
14.   Environmental costing
20%
MANAGING SHORT-TERM FINANCE
15.   Working Capital Management
16.   Cash flow forecasts
17.   Cash Management
18.   Receivables & Payables Management
19.   Inventory Management
15%
TOTAL100%

Detailed Syllabus Contents:

The detailed Syllabus of Advanced Management Accounting for upcoming attempt is given below.

PART – A

FORECASTING AND BUDGETING TECHNIQUES

1. Forecasts

  • Forecasting using historical data
  • Linear regression analysis
  • Scatter diagrams and correlation
  • Sales forecasting

2. Budgeting

  • Why do organizations prepare budgets
  • Framework for budgeting
  • Steps in Budget preparation
  • Functional budgets
  • Budgetary Planning and Control system
  • Sales Budgets
  • Production Budget and related budgets
  • Cash Budgets
  • Master Budgets
  • Capital Expenditure Budgets
  • Monitoring procedures
  • Fix  and  flexible  budgets(static/planning budget and Flexible budget)
  • Preparing  flexible  budgets  (Calculation  of Spending and Revenue variances are included)
  • Preparation  of  projected  profit  and  loss account and balance sheet

PART – B

STANDARD COSTING AND VARIANCE ANALYSIS

3. Standard Costing

  • Uses of Standard costing
  • Setting standards for manufacturing cost i.e. material,  labour  and  manufacturing overheads
  • Basic standards, ideal standards and attainable standards
  • Setting standard in service industries
  • Updating standards
  • Comparison of budget and standard
  • Criticism of standard costing

4. Variance  Analysis,  Interpretation  and  Profit Reconciliation

  • Variances
  • Direct material cost variances
  • Direct labour cost variances
  • Variable overhead variances
  • Fixed overhead variances
  • Planning and operational variances
  • Sales variances
  • Operating statements
  • Variances in a standard marginal costing
  • Working backwards approach to variance analysis
  • Material mix and yield variances
  • Labour mix and yield variances
  • Sales mix and quantity variances
  • Investigate  variance  or not  to  investigate variance
  • Variance investigation model
  • Controllability principle in Joint Variances
  • Interpreting variances
  • Profit  reconciliation(standard  absorption costing  and  standard  marginal  costing systems)

PART – C

PROJECT APPRAISAL METHODS

5. Capital Investment decisions

  • Process of investment decision making
  • Payback Method
  • Post Audit

6. DCF techniques of investment appraisal

  • Discounted payback
  • The net present value method
  • The internal rate of return method
  • Regression and forecasting
  • Components of time series
  • Finding the trend
  • Finding the seasonal variations
  • Time series analysis and forecasting Using spreadsheet  packages  to  build  business models

7. Taking account of taxation and inflation

  • Allowing for inflation (Adjusting cash flows for inflation)

8. Additional aspects of  investment  decision making

  • Mutually exclusive projects  with  unequal lives
  • Asset replacement
  • Project abandonment
  • Capital rationing
  • Sensitivity analysis
  • Probability analysis and long-term decisions

PART – D

COST ANALYSIS

9. Break Even Analysis

  • Breakeven Analysis and Contribution Margin
  • Breakeven Point in units and value for single and multiple products
  • Contribution/Sales (C/S) Ratio
  • Margin of Safety and Margin of Safety Ratio
  • Breakeven arithmetic and profit targets
  • Breakeven charts and profit/volume graphs
  • Limitation of Breakeven analysis

10.  Limiting factor Analysis

  • Limiting factors
  • Limiting  factor  analysis  and  restricted freedom of action
  • Optimum  production  plan  with  scarce recourses
  • Make or buy decisions and scarce resources
  • Limiting factors and shadow prices
  • Using limiting factors analysis
  • Concept  of  Relevant  Cost  and  Relevant Revenue
  • Sell or process further decisions
  • Accept or reject special orders
  • Dropping a product line or a segment of business

PART – E

MODERN COSTING TECHNIQUES

11.  Marginal Cost Analysis

  • Marginal  Costing  as  a  tool  for  business decision making
  • Concept of marginal cost and total cost with respect to business decision making
  • Pricing decisions
  • Cost Based Pricing
  • Customer Based Pricing
  • Demand Based Pricing
  • Other Pricing Strategies

12.  Activity Based Costing

  • Reasons for the development of ABC
  • Outline of an ABC system
  • Absorption costing versus ABC
  • Marginal costing versus ABC
  • Introducing an ABC system
  • Benefits of ABC system

13.  Throughput and Back flush Accounting

  • The theory of constraints (TOC)
  • Throughput accounting

14.  Environmental costing

  • The importance of environmental costs
  • Environmental footprints
  • Types of cost
  • Environmental cost accounting

PART – F

MANAGING SHORT-TERM FINANCE

15.  Working Capital Management

  • Working capital
  • Working capital ratios
  • Cash Conversion Cycle

16.  Cash flow forecasts

  • Cash flows and profit
  • Purpose of cash forecasts
  • Cash  budgets  in  receipts  and  payments format
  • Cleared funds cash forecasts
  • Cash forecasts based on financial statements
  • Need for cash management

17.  Cash Management

  • Budgeting for borrowings
  • Regression and forecasting
  • Components of time series
  • Finding the trend
  • Finding the seasonal variations
  • Time series analysis and forecasting Using spreadsheet  packages  to  build  business models
  • NPV and IRR compared                                 

18. Receivables & Payables Management

  • What is credit control?
  • Total credit
  • The credit cycle
  • Payments terms and settlement discounts
  • Maintaining information on receivables
  • Collecting debts
  • Credit insurance, factoring and invoice
  • discounting
  • Managing payables

19. Inventory Management

  • Managing inventories
  • Inventory controls systems

syllabus of M5 Advanced Management Accounting:

syllabus of M5 Advanced Management Accounting syllabus of M5 Advanced Management Accounting syllabus of M5 Advanced Management Accounting syllabus of M5 Advanced Management Accounting syllabus of M5 Advanced Management Accounting syllabus of M5 Advanced Management Accounting

Leave a Reply

Your email address will not be published. Required fields are marked *