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Syllabus GRID:
Here is the grid of Syllabus of Advanced Management Accounting.
| GRID | WEIGHTAGE |
| 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% |
| TOTAL | 100% |
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
