Aim
To
ensure students can apply judgement and technique
in the analysis of relevant data to provide
management with the information required to
contribute to a range of strategic planning,
control and decision-making situations.
Objectives
On completion of this paper candidates should
be able to:
-
understand the objectives of preparing management
information and the need to adapt techniques
in a changing commercial environment
-
identify
the information needs of management and
contribute to the development of appropriate
systems
-
evaluate the strategic performance of a
business and recommend appropriate performance
measures
-
apply
techniques to evaluate management decision
making in relation to pricing, product range
and marketing expenditure
-
identify
and apply appropriate budgeting techniques
to enable management to control the business
and
-
demonstrate the skills expected in Part
3.
Content
Management accounting framework objectives
of management information, trends and developments
in management accounting techniques and methods,
impact of changes in business structures, functions
and performance measures.
Design
of management information systems system
objectives and the uses of information, sources
of information, recording and processing methods,
format of reports, influencing factors - cost-benefit
analysis, type of activities, size of entity,
information requirements.
Performance
measurement performance measures - profit,
EPS, share price, ROI, RI, Balanced Scorecard,
Performance Pyramid, non financial performance
measures, throughput accounting, adjustments
to performance for price and volume factors,
transfer pricing, reward schemes and management
behaviour.
Decision-making
pricing strategies and evaluation pricing decisions,
profit maximisation and CVP analysis, product
profitability, limiting factor analysis, evaluating
marketing spends, brand switching analysis,
customer profitability analysis.
Budgeting
and budgetary control preparation, behavioural
aspects, quantitative aids, uncertainty, activity
based budgeting, control theory, current developments
in budgeting. |
