Describe the purpose and role of cost and management accounting within an organisation.

Compare and contrast financial accounting with cost and management accounting.

Outline the managerial processes of planning, decision-making and control.

Explain the difference between strategic, tactical and operational planning.

Distinguish between data and information.

Identify and explain the attributes of good information.

Explain the limitations of management information in providing guidance for managerial decision-making.

Describe the three main data sources: machine/sensor, transactional and human/social.

Describe and identify sources and categories of information including internal, external, primary and secondary.

Explain the uses and limitations of published information/data (including information from the internet).

Identify the data capture costs of management accounting information.

Explain and illustrate production and non-production costs.

Describe the different elements of non-production costs - administrative, selling, distribution and finance.

Describe the different elements of production costs - materials, labour and overheads.

Explain the importance of the distinction between production and non-production costs when valuing output and inventories.

Explain and illustrate with examples classifications used in the analysis of product/service costs including by function, direct and indirect, fixed and variable, stepped fixed and semi variable costs.

Explain and illustrate the use of codes in categorising transactions.

Identify and interpret graphical representations of different types of cost behaviour.

Explain and illustrate the concept of cost objects, cost units and cost centres.

Distinguish between cost, profit, investment and revenue centres.

Describe the differing needs for information of cost, profit, investment and revenue centre managers.

Prepare written reports representing management information in suitable formats according to purpose.

Use data visualisation to present information using tables, charts and graphs (bar charts, line graphs, pie charts and scatter graphs).

Interpret information (including tables, charts and graphs) presented in management reports.

Test your knowledge across all Section A topics

Identify gaps before moving to the next section

Explain sampling techniques including random, systematic, stratified, multistage, cluster and quota

Choose an appropriate sampling method in a specific situation

Explain the structure of linear functions and equations

Use the high low method to separate fixed and variable elements

Explain the advantages and disadvantages of the high low method

Construct scatter diagrams and lines of best fit

Explain correlation coefficient and coefficient of determination

Calculate and interpret correlation coefficients

Establish a linear function using regression analysis

Use linear regression to make forecasts

Adjust historical data for price movements

Explain advantages and disadvantages of linear regression

Explain principles of time series analysis

Calculate moving averages

Calculate the trend using regression

Use trend and seasonal variation to make forecasts

Explain advantages and disadvantages of time series analysis

Explain the purpose of index numbers

Calculate simple and multi-item index numbers

Describe the product life cycle and its importance in forecasting

Test your knowledge across all Section B topics

Identify gaps before moving to the next section

Describe inventory systems and control procedures

Calculate optimal reorder quantities and levels

Value inventory using FIFO, LIFO, and AVCO

Calculate labour costs, turnover, and efficiency ratios

Allocate, apportion, and absorb production overheads

Explain the concept of contribution

Calculate profit under absorption and marginal costing

Reconcile profits between the two methods

Evaluate the advantages of each method

Apply job and batch costing techniques

Calculate equivalent units and value abnormal losses in process costing

Distinguish between joint products and by-products

Apply service costing principles

Explain Activity-Based Costing (ABC), Target Costing, and Life-Cycle Costing

Differentiate these modern techniques from traditional costing

Test your knowledge across all Section C topics

Identify gaps before moving to the next section

Explain why organisations use budgeting.

Describe the planning and control cycle in an organisation.

Explain the administrative procedures used in the budgeting process.

Describe the stages in the budgeting process.

Explain the importance of the principal budget factor in constructing a budget.

Prepare sales budgets.

Prepare functional budgets (production, raw materials usage and purchases, labour, variable and fixed overheads).

Prepare cash budgets.

Prepare master budgets (statement of profit or loss and statement of financial position).

Explain and illustrate 'what if' analysis and scenario planning.

Describe the impact of the general economic environment on costs/revenue in budgeting.

Explain the importance of considering sustainability in budget preparation.

Explain the importance of flexible budgets in control.

Explain the disadvantages of fixed budgets in control.

Identify situations where fixed or flexible budgetary control would be appropriate.

Flex a budget to a given level of volume.

Discuss the importance of investment planning and control.

Define and distinguish between asset and expense items.

Outline the issues to consider and the steps involved in the preparation of an asset expenditure budget.

Explain and illustrate the difference between simple and compound interest, and between nominal and effective interest rates.

Explain and illustrate compounding and discounting.

Explain the distinction between cash flow and profit and the relevance of cash flow to investment appraisal.

Identify and evaluate relevant cash flows for individual investment decisions.

Explain and illustrate the net present value (NPV) and internal rate of return (IRR) methods of discounted cash flow.

Calculate 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.

Calculate simple variances between flexed budget, fixed budget and actual sales, costs and profits.

Discuss the relative significance of variances.

Explain potential action to eliminate variances.

Define the concept of responsibility accounting and its significance in control.

Explain the concept of controllable and uncontrollable costs.

Prepare control reports suitable for presentation to management.

Explain the importance of motivation in performance management.

Identify factors in a budgetary planning and control system that influence motivation.

Explain the impact of targets on motivation.

Discuss managerial incentive schemes.

Discuss the advantages and disadvantages of a participative approach to budgeting.

Explain top down and bottom up approaches to budgeting.

Test your knowledge across all Section D topics

Identify gaps before moving to the next section

Explain the purpose and principles of standard costing.

Explain and illustrate the difference between standard, marginal and absorption costing.

Establish the standard cost per unit under absorption and marginal costing.

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.

Interpret the variances.

Explain factors to consider before investigating variances, explain possible causes of the variances and recommend control action.

Explain the interrelationships between the variances.

Calculate actual or standard figures where the variances are given.

Reconcile budgeted profit with actual profit under standard absorption costing.

Reconcile budgeted profit or contribution with actual profit or contribution under standard marginal costing.

Test your knowledge across all Section E topics

Identify gaps before moving to the next section

Discuss the purpose of mission statements and their role in performance measurement

Discuss the purpose of strategic, operational and tactical objectives

Discuss the impact of economic and market conditions on performance measurement

Explain the impact of government regulation on performance measurement

Explain the impact of sustainability on performance measurement

Discuss and calculate measures of financial performance and non-financial measures

Discuss the advantages and limitations of the balanced scorecard and describe its indicators

Explain the concepts of economy, efficiency and effectiveness and calculate related ratios

Describe and establish measures of resource utilisation in service and manufacturing environments

Calculate return on investment (ROI) and residual income (RI)

Distinguish performance measurement issues in service and manufacturing industries and explain TQM

Compare cost control and cost reduction

Describe and evaluate cost reduction methods

Describe and evaluate value analysis

Discuss the importance of non-financial performance measures

Discuss the relationship between short-term and long-term performance

Discuss the measurement of performance in service industry situations

Discuss the measurement of performance in non-profit seeking and public sector organisations

Discuss measures used to assess managerial performance and practical problems

Discuss the role of benchmarking in performance measurement

Produce reports highlighting key areas for management attention

Test your knowledge across all Section F topics

Identify gaps before moving to the next section