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 of PIPFA level 4 Management Accounting

Syllabus GRID:

Here is the grid for syllabus of PIPFA level 4 Management Accounting.

Introduction to Management Accounting3 – 7
Forecasting and Budgeting15 – 20
Performance Analysis25 – 35
Decision Making30 – 40
Introduction to Financial Management10 – 15

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

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