LCCI Management Accounting Third Level(3023)-Series 2,3 & 4

May 15th, 2008 Comments off
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The aim of the examination is to test the candidate’s knowledge and understanding of the basic principles involved in short-term cost behaviour, short and long-term decision making and short-term profit control, cash management and product cost ascertainment

SYLLABUS CONTENT

1.0  Short-term Cost Behaviour

  • Effective assessment of the cost effects of the various alternatives open to management
  • Fixed, variable and semi-variable costs.
  • Segregation of semi-variable costs into fixed and variable components

2.0  Short-term Decision Making

·        Basic principles upon which short-term decision should be based

·        Marginal costs,

·        Contribution Theory.

·        Cost Volume Profit Analysis

·        Preparation of break even charts-their value and limitations

·        Differential costing

·        Cash flow statements

·        Key or limiting factors

3.0 Short-term Profit Control

  • Appreciation of the principles and comprehension of control documents
  • Principles of profit control; Preparation of standard costs and budgets; Variance analysis and the reporting of variances; Control standards; Control diagnosis.

4.0 Cash Management

·        The effects of management decisions on the cash flows

·        Concept of working capital; The effect of sales expansion on working capital; Product/Project life cycles; Cash Budgeting.

5.0 Long-term Decison Making and Control

  • Appreciation of useful techniques and the production of data
  • Long term financial planning; Discounted cash flow techniques ; Relevant costs

6.0 Product Cost Ascertainment

  • The methods by which the costs of operations, processes, departments or products are ascertained
  • Problem of charging overheads to products; Overhead analysis technique; Overhead absorption techniques ; Overhead under and over absorption

7.0  Transfer Pricing and Performance Evaluation

  • Its importance in decentralized organization
  • Reasons for transfer pricing  and an introduction to the problems it may create within highly interdependent structures

8.0 Information Processing

  • An appreciation of system design
  • The influence of information technology upon management accounting systems; The collection, recording and presentation of information for decision making

      EXAMINATION REQUIREMENTS

  • A three hour examination 5 questions to be answered from a choice of 6.

Graph paper will be provided and calculators can be used ( no printout, no word display facilities, silent and cordless)

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Financial Accounting

 
 

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