Management Accounting & Services: Topics/Subtopics Taken UP?
Management Accounting & Services: Topics/Subtopics Taken UP?
Management Accounting & Services: Topics/Subtopics Taken UP?
TAKEN
TOPICS/SUBTOPICS UP?
1.0 Management Accounting
1.1.2 Distinction among management accounting, cost accounting and financial accounting
YES
1.1.3 Role and activities of controller and treasurer YES
1.1.4 International certifications in management accounting NO
1.2 Management Accounting Concepts and Techniques for Planning & Control YES
1.2.1 Cost terms, concepts and behavior YES
1.2.1.1 Nature and classification of costs YES
1.2.1.2 Analysis of cost behavior (variable, fixed, semi-variable / mixed, step-cost) NO
1.2.1.3 Splitting mixed cost (high-low, scatter graph, least-squares regressions) NO
1.2.2 Cost-volume-profit (CVP) analysis YES
1.2.2.1 Uses, assumptions and limitations of CVP analysis YES
1.2.2.2 Factors affecting profit NO
1.2.2.3 Breakeven point in unit sales and peso sales NO
1.2.2.4 Required selling price, unit sales and peso sales to achieve a target profit NO
1.2.2.5 Sensitivity analysis (including indifference point in unit sales and peso sales) NO
1.2.2.6 Use of sales mix in multi-product companies NO
1.2.2.7 Concepts of margin of safety and degree of operating leverage NO
1.2.3 Standard costing and variance analysis YES
1.2.3.1 Direct material variance (quantity, price usage, purchase price, mix and yield) YES
1.2.3.2 Direct labor variance (efficiency, rate, mix and yield) YES
1.2.3.3 Factory overhead variance – two-way method (controllable and volume); three-way
method (spending, variable efficiency and volume); four-way method (variable spending, fixed
spending, variable efficiency and volume) YES
1.2.4 Variable costing and absorption costing YES
1.2.4.1 Nature and treatment of fixed factory overhead costs NO
1.2.4.2 Distinction between product cost and period cost NO
1.2.4.3 Inventory costs between variable costing and absorption costing NO
1.2.4.4 Reconciliation of operating income under variable costing and absorption costing NO
1.2.5 Financial planning and budgets NO
1.2.5.1 Definition and coverage of the budgeting process NO
1.2.5.2 Master budget and its components (operating and financial budgets) NO
1.2.5.3 Types of budgets (static, flexible, zero-based, continuous) NO
1.2.5.4 Budget variance analysis (static and flexible) NO
1.2.6 Activity-based costing (ABC) and activity-based management (ABM) NO
1.2.6.1 Activity levels (unit-level, batch-level, product-level and facility-level), cost pools and
activity drivers NO
1.2.6.2 Determination of cost pool rates and application of overhead costs NO
1.2.6.3 Traditional costing versus activity-based costing NO
1.2.6.4 Process value analysis (value-added activities and non-value-added activities) NO
1.2.7 Strategic cost management NO
1.2.7.1 Total quality management NO
1.2.7.2 Just-in-time production system NO
1.2.7.3 Continuous improvement NO
1.2.7.4 Business process reengineering NO
1.2.7.5 Kaizen costing NO
1.2.7.6 Product life cycle costing NO
1.2.7.7 Target costing NO
1.3 Management Accounting Concepts and Techniques for Performance Measurement NO
1.3.1 Responsibility accounting and transfer pricing NO
1.3.1.1 Type of responsibility centers (cost, revenue, profit and investment centers) NO
1.3.1.2 Concepts of decentralization and segment reporting NO
1.3.1.3 Controllable and non-controllable costs, direct and common costs NO
1.3.1.4 Performance margin (manager versus segment performance) NO
1.3.1.5 Preparation of ‘segmented’ income statement NO
1.3.1.6 Return on investment (RoI), residual income and economic value added (EVA) NO
1.3.1.7 Rational and need for transfer price NO
1.3.1.8 Transfer pricing schemes (minimum transfer price, market-based transfer price, cost-
based transfer price and negotiated price) NO
1.3.2 Balanced scorecard NO
1.3.2.1 Nature and perspectives of balanced scorecard NO
1.3.2.2 Financial and non-financial performance measures NO
1.4 Management Accounting Concepts and Techniques for Decision Making NO
1.4.1 Quantitative techniques NO
1.4.1.1 Regression and correlation analysis NO
1.4.1.2 Gantt chart NO
1.4.1.3 Program evaluation review technique (PERT) – Critical Path Method (CPM) NO
1.4.1.4 Probability analysis (expected value concept) NO
1.4.1.5 Decision tree diagram NO
1.4.1.6 Learning curve NO
1.4.1.7 Inventory models (carrying and ordering costs, EOQ model, safety stock, reorder point) NO
1.4.1.8 Linear programming (graphic method; algebraic method) NO
1.4.2 Relevant costing and differential analysis NO
1.4.2.1 Definition and identification of relevant costs NO
1.4.2.2 Concept of opportunity costs NO
1.4.2.3 Approaches in analyzing alternatives in non-routing decisions (total and differential) NO
1.4.2.4 Types of decisions (make or buy, accept or reject special order, continue or drop /
shutdown, sell or process further, best product combination, pricing decisions) NO
2.0 Financial Management NO
2.1 Objectives and Scope of Financial Management NO
2.1.1 Nature, purpose and scope of financial management NO
2.1.2 Role of financial managers in investment, operating and financing decisions NO
2.2 Financial Management Concepts and Techniques for Planning, Control & Decision Making
NO
2.2.1 Financial statement analysis YES
2.2.1.1 Vertical analysis (common-size financial statements)
YES
2.2.1.2 Horizontal analysis (trend percentages and index analysis)
YES
2.2.1.3 Cash flow analysis (interpretation of cash flows including free cash flow concept) YES
2.2.1.4 Gross profit variance analysis (price, cost and volume factors) NO
2.2.1.5 Financial ratios (liquidity, solvency, activity, profitability, growth and other ratios; Du Pont model)
NO
2.2.1.6 Financial forecasting using additional funds needed (AFN) NO
2.2.2 Working capital finance NO
2.2.2.1 Concepts and significance of working capital management NO
2.2.2.2 Working capital investment and financing policies (conservative vs. aggressive) NO
2.2.2.3 Cash and marketable securities management (cash conversion cycle, optimal cash
balance, collection and disbursement float, cash management system) NO
2.2.2.4 Receivables management (average balance of and investment in accounts
receivable, incremental analysis and evaluation of discount, collection and credit policies)
NO
2.2.2.5 Inventory management (carrying, ordering and stock-out costs, inventory control
system including EOQ model, safety stock, reorder point) NO
2.2.2.6 Sources of short-term funds (trade credit, bank loans, commercial papers, receivable
factoring) NO
2.2.2.7 Estimating cost of short-term funds (annual cost of trade credit, effective and nominal
annual rate of short-term funds) NO
2.2.3 Capital budgeting NO
2.2.3.1 Capital investment decision factors (net investment for decision making, cost of
capital, cash and accrual net returns) NO
2.2.3.2 Non-discounted capital budgeting techniques (payback period, accounting rate of
return on original and average investment, bail-out payback and payback reciprocal) NO
2.2.3.3 Discounted capital budgeting techniques (net present value, internal rate of return,
profitability index, equivalent annual annuity, fisher rate / NPV point of indifference) NO
2.2.3.4 Project screening, project ranking and capital rationing (independent and mutually
exclusive capital investment projects) NO
2.2.3.5 Sensitivity analysis (effects of changes in project cash flow, tax rates and other
assumptions) NO
2.2.4 Investments, risks and rates of returns NO
2.2.4.1 Types of risks (business / operating, financing) NO
2.2.4.2 Measures of risks (coefficient of variation and standard deviation) NO
2.2.4.3 Degree of operating, financial and total leverage NO
2.2.4.4 Derivatives (forwards, futures, swaps and options) NO
2.2.4.5 Investment models (e.g., Black Sholes, CAPM) NO
2.2.4.6 Capital markets, the Philippine Stock Exchange and other foreign bourses NO
2.2.4.7 Types of investment products and their characteristics NO
2.2.5 Capital structure and long-term financing decision NO
2.2.5.1 Basic concepts and tools of capital structure management NO
2.2.5.2 Sources of intermediate and long-term financing (including hybrid financing) NO
2.2.5.3 Cost of capital (cost of long-term debt, cost of preferred shares, cost of equity,
weighted average cost of capital, marginal cost of capital) NO
3.0 Management Consultancy NO
3.1 Management Consultancy Practice by Certified Public Accounting (CPAs) NO
3.1.1 Nature of management consultancy engagements NO
3.1.2 Professional attributes of management consultants NO
3.1.3 Areas, stages and management of management consultancy engagements NO
3.1.4 IFAC & Philippine Code of Ethics for the Accountancy Profession NO
3.1.5 NOCLAR provisions and implications NO
3.2 Project Feasibility Studies NO
3.2.1 Nature, purpose and components (economic / marketing, technical and financial) NO
3.2.2 Analysis of project revenue and costs under specific assumptions NO
3.2.3 Preparation of projected financial statements NO
3.2.4 Analysis of financial projections NO
4.0 Economic Concepts essential to obtaining an understanding of entity’s business and industr NO
4.1 Macroeconomics(national economic issues and measures of economic performance such
as GDP; unemployment and inflation; fiscal and monetary policies; international trade and
foreign exchange rates) NO
4.2 Microeconomics (concept of and factors affecting supply; concept of and factors affecting
demand; market equilibrium; price elasticity of demand; market structure; production and cost
functions) NO
5.0 Updates on Special Concerns NO
5.1 Globalization NO
5.2 Digitaland Information Technology NO
5.3 Governance and Ethics NO
5.4 Regulatory Requirements and Considerations NO
5.5 Effective Business Communication NO
CCOUNTING & SERVICES
EXPLANATION
The role of the management accountant is to perform a series of tasks to ensure their
company's financial security, handling essentially all financial matters and thus helping to
drive the business's overall management and strategy.
The study of how specific costs respond to changes in the level of business activity
Becuase of may assumptions, CVP is only an approximation or estimation at best.
Fixed budget analysis with 2 factors: actual factory overhead, budgeted factory overhead
and volume variance
How to compute net income in variable cost income statement
It measures and analyze liquidity, solvency, profitability of the company
common-size analysis, is a technique that expresses each financial statement item as a
percent of a base amount.
trend analysis, is a technique for evaluating a series of financial statement data over a
period of time.