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Strategic Management Accounting: Syllabus Weightage

This document outlines the syllabus for a strategic management accounting course. It is divided into 3 parts covering cost planning, pricing decisions, and performance management. Part A covers cost analysis techniques and planning methods (25%). Part B focuses on pricing, product decisions, and quantitative methods like breakeven analysis and linear programming (40%). Part C examines performance evaluation, responsibility centers, and transfer pricing (35%).

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Ahmed Raza
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83 views

Strategic Management Accounting: Syllabus Weightage

This document outlines the syllabus for a strategic management accounting course. It is divided into 3 parts covering cost planning, pricing decisions, and performance management. Part A covers cost analysis techniques and planning methods (25%). Part B focuses on pricing, product decisions, and quantitative methods like breakeven analysis and linear programming (40%). Part C examines performance evaluation, responsibility centers, and transfer pricing (35%).

Uploaded by

Ahmed Raza
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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STRATEGIC

MANAGEMENT
ACCOUNTING
Syllabus Weightage
Part A – Cost Planning, Analysis and Techniques 25%

Part B – Pricing and Product Decisions 40%

Part C – Performance Management and Responsibility Centre 35%


Part A – Cost Planning, Analysis and Techniques 25%
1. Cost Planning 3. Cost Management Techniques

• Learning Curve • Traditional vs Modern Manufacturing Philosophy

• Life Cycle Costing • Just-in-time (JIT)

• Target Costing • Kaizen Costing

• Value Analysis • Total Quality Management

• Functional Analysis • Business Process Re-engineering

2. Cost Analysis 4. Externally Oriented Cost Management Techniques

• Activity Base Costing (ABC) • The Value Chain

• Activity Base Management (ABM) • Supply Chain Management

• Direct Product Profitability (DPP) • Outsourcing

• Customer Profitability Analysis (CPA) • Partnering, incentives and gain-sharing arrangements

• Distribution Channel Profitability

• Activity-based profitability analysis

• Pareto analysis
Part B – Pricing and Product Decisions 40%
5. Relevant Costs 7. Risk And Uncertainty

• Relevant Costs and Revenues


• Risk and uncertainty in decision making

• Opportunity Cost
• Probability analysis and expected values
• The Relevant Cost of Materials
• Data tables
• The Relevant Cost of Labour
• The maximin, maximax and minimax regret bases for decision making
• The Relevant Cost of Overheads
• Using the standard deviation to measure risk
6. Short-term Decisions
• Decision trees
• Presentation guidelines
• The value of information
• Acceptance/rejection of contracts
• Sensitivity analysis
• Minimum pricing
• Simulation models
• Extra shift decisions and overtime
8. Linear Programming: the Graphical Method
• Make or buy decisions
• Graphical method
• Either/or problems
• Graphical method using simultaneous equations
• Shutdown problems
• Sensitivity analysis
• Choosing between options

• Allocation of joint costs


Part B – Pricing and Product Decisions (continued……)
9. Linear Programming: the Simplex method 11. Pricing Decisions and Pricing Strategies

• Principles of the simplex method • Demand base pricing

• Sensitivity analysis • Other issues that influence pricing decisions

• Using computer packages • Deriving the demand curve

• Using linear programming • Profit maximizing price

• Breakeven Analysis in a Multi-Product Environment • Full cost pricing

10. Multi-product Breakeven Analysis • Marginal cost-plus/Mark-up pricing

• Drawing a basic breakeven chart • Pricing based on mark-up per unit of limiting factor

• Breakeven point for multiple products • Pricing strategies for new products

• Contribution to sales (C/S) ratio for multiple products • Other pricing strategies

• Sales/product mix decisions

• Target profits for multiple products

• Margin of safety for multiple products

• Multi-product breakeven charts

• Further aspects of breakeven analysis

• Sensitivity analysis
Part C – Performance Management and Responsibility Centre 35%
12. Budgetary Control 14. Measuring Performance in Divisional Business

• Flexible Budgets and Budgetary Control • Responsibility Centres

• System design • Return on Investment (ROI)

• Using Spread sheets to build business models • ROI and decision making

• Rolling Budgets • Residual Income (RI)

• Behavioral implications of budgeting • Economic Value Added (EVA)

• Budget Participation 15. Transfer Pricing

• Use of Budgets as Targets • Basic principles of transfer pricing

• Budget and Motivation • General rules

• Beyond Budgeting • Use of market price as a basis for transfer prices

13. Performance Evaluation • Transfer pricing with an imperfect external market

• Financial Performance Indicators • Transfer pricing when there is no external market for the transferred item

• Non-Financial Performance Indicators • Transfer pricing and changing costs/prices

• The Balanced Scorecard • Identifying the optimal transfer price

• Benchmarking • Negotiated transfer prices

• International transfer pricing


SYED AHMED RAZA
QUALIFICATION FCMA, MIPA, APA (Australia), FIA (UK)
EXPERIENCE +7 years corporate experience with blend of Manufacturing
and Banking sectors
+12 years teaching experience of professional qualification
including ICMAP, CIMA and ACCA
CONTACT 0333-33372344
+61432410503 (WhatsApp only)
[email protected]
CONSULTATION 6:00 PM to 8:00 PM
HOURS
(Tuesday & Friday)

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