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)