acca test book Corporate and Business Law Financial Information for Management pptx

PAGE 3

AIM

To develop knowledge and understanding

of the application of management

accounting techniques to support the

management processes of planning, control

and decision making.

OBJECTIVES

On completion of this paper candidates

should be able to:

• explain the role of management

accounting within an organisation and the

requirement for management information

• describe costs by classification and

purpose

• identify appropriate material, labour and

expense costs

• understand the principles of costing and

apply them in straightforward scenarios

• understand and demonstrate the cost

factors affecting production and pricing

decisions

• understand the basic principles of

performance management

• demonstrate the skills expected in Part 1.

POSITION OF THE PAPER IN THE

OVERALL SYLLABUS

No prior knowledge is required before

commencing study for Paper 1.2. Some

understanding of the accounting principles

and practices from Paper 1.1 Preparing

Financial Statements and a basic

competence in numeracy are assumed.

This paper provides the basic techniques

required to enable the candidate to develop

the various methods into more complex

problems at later parts. Candidates will,

therefore, need a sound understanding of

the methods and techniques encountered in

this paper to ensure that they can take them

further in subsequent papers. The methods

introduced in this paper are revisited and

extended in Paper 2.4 Financial Management

and Control and taken yet further in Papers

3.3 Performance Management and 3.7

Strategic Financial Management.

SYLLABUS CONTENT

1 Accounting for management

(a) The nature, purpose, scope and

interrelations of functions carried out

by management in relation to

resources, costs, operations,

performance

(i) setting objectives (long and short￾term, strategic and operational,

corporate and personal)

(ii) planning to meet objectives

(iii) implementing objectives

(iv)monitoring and controlling

against objectives and plans

(b) Nature of internal reporting

(i) financial and non-financial

information for managers

(ii) cost centres, revenue centres,

profit centres and investment

centres and the impact of these

on management information.

(c) Management information

requirements

(i) importance and definition of

good information

(ii) presentation of information

(iii) role of accountants and

accounting information

(iv)role of IT.

(d) Maintaining and improving an

appropriate system

(i) cost units

(ii) cost/profit/responsibility centres

Financial Information for Management

Paper 1.2

3.3 Performance Management 3.7 Strategic Financial Management

2.4 Financial Management and Control

1.2 Financial Information for Management