An introduction to Management Accounting: Decision and Control
This unit is one of the mandatory Professional level units. It takes students from Advanced level costing principles and prepares them to be valuable members of a management accounting finance team. This unit was formerly known as Financial Performance.
A student who has successfully completed this unit, together with the Professional level unit, Management Accounting: Budgeting, should be a useful member of a management accounting team. Working with little supervision, the student could be expected to liaise with key business unit managers and/or budget holders in order to: prepare a basic budget and/or standard cost budget; create budgetary reports, control reports and standard costing control reports; and prepare key performance indicators and workings to aid management decision making.
This unit teaches students management accounting principles and concepts. Students will understand the nature and importance of different concepts such as cost behaviour, cost analysis, standard costing and contribution theory. They will know when each technique should be used to aid the planning and decision making of an organisation and the subsequent analysis for control purposes.
They will learn the key performance indicators that should be used to aid the performance monitoring of an organisation and the techniques for assessing changes to an organisation (what-if analysis). The student will build a toolbox of techniques, understand the nature of these techniques and know when each technique should be used.
Management Accounting: Decision and Control is a mandatory unit and builds on the fundamental concepts and techniques introduced in Foundation level Elements of Costing and Advanced level Management Accounting: Costing.
Learning outcomes for Management Accounting: Decision and Control
1. Analyse a range of costing techniques to support the management accounting function of
2. Calculate and use standard costing to improve performance
3. Demonstrate a range of statistical techniques to analyse business information
4. Use appropriate financial and non-financial performance techniques to aid decision making
5. Evaluate a range of cost management techniques to enhance value and aid decision making.
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