CIMA - P1 Management Accounting

This seeks to address the following pertinent questions: What are reasons for calculating costs? What types of costs are appropriate for a particular purpose and why? Examine the basic building blocks of costing and how they apply to different types of organisations and operating contexts (e.g., manufacturing and service sectors). How has the digital world affected the nature of these building blocks of costing? Investigate how costs are traced, classified, accumulated, allocated, apportioned and absorbed to arrive at the costs of a product, service or other cost object. Calculate the costs of products or services using various costing methods. Determine which costing methods are appropriate and why? Why do organisations prepare budgets? In what ways are the different rationales for preparing budgets compatible with each other? How do organisations get the most out the budgeting process? What is the process by which budgets are prepared? What types of budgets are required by organisations? What data do they use and where do they get the data from? How are those budgets prepared and presented? What technologies are available for improving the quality of the budgets? What is budgetary control? Describe and discuss how and why the budgetary control system provides feedback and feedforward to the organisation. What are the behavioural impacts of budgetary control and how are they managed? Describe the types of short-term decisions organisations make and the circumstances that give rise to them. What do these short-term decisions seek to achieve? How important are they to performance of organisations? The emphasis is on both revenue and costs. What are the objectives and underlying concepts that are used to guide short-term decision-making and why? Distinguish between those concepts of revenue, costs and information from other concepts. Use data (financial and non-financial) and the appropriate concepts and techniques to support decision-making to achieve organisational objectives of value creation and preservation. What types of risks and uncertainties do organisations face when preparing and implementing budgets and when making short-term decisions? How are those risks and uncertainties identified, assessed and managed?

A.     Cost accounting for decision and control

· Distinguish between the different rationales for costing.

· Apply the main costing concepts to organisations and cost objects.

· Apply costing methods to determine the costs for different purposes.

B.     Budgeting and budgetary control

· Distinguish between the different rationales for budgeting.

· Prepare budgets.

· Discuss budgetary control.

C.     Short-term commercial decision-making

· Describe the main types of short-term decisions made by organisations.

· Explain the underlying concepts used for short-term decision-making.

· Apply appropriate techniques to support short-term decisions.

D.    Risk and uncertainty in the short term

· Apply basic risk management tools in the short term.

Higher Secondary Qualified