MA2 ★ K҉A҉P҉‎•L҉A҉N҉ ★ Managing Costs and Finances - STUDY TEXT and REVISION KIT

MA2 Managing Costs and Finance is part of ACCA FIA Foundation in Accountancy.

OVERALL AIM OF THE SYLLABUS

To gain knowledge and understanding of how to prepare, process, and present basic cost information in order to assist management in planning and decision-making in a variety of business contexts.

Syllabus of MA2

The syllabus for MA2, Managing Costs and Finances, introduces candidates to costing and financing principles and techniques, as well as elements of management accounting that are used to make and support decisions.

The syllabus begins by introducing candidates to management information and clearly distinguishing it from financial accounting information. The following section covers the fundamentals of recording costs in management accounting. This is followed by an examination of various costing techniques used in business.

The following section of the syllabus introduces candidates to the use of management accounting to aid decision making. Finally, the syllabus introduces the concept of cash management as a critical component of planning.

MAIN CAPABILITIES

On successful completion of this exam, candidates should be able to:

• Explain the role of costing within the organisation and how costs are classified
• Describe and record costs by classification
• Explain and apply cost accounting techniques
• Use management accounting techniques to make and support decision-making.
• Explain principles of cash management

APPROACH TO EXAMINING THE SYLLABUS

A two-hour computer-based examination is used to assess the syllabus. Questions will cover all aspects of the curriculum and will include both computational and non-computational elements. The exam will consist of 50 two-mark questions.

DETAILED SYLLABUS:

A - Management information

1. Management information requirements
2. Cost accounting systems
3. Cost classification
4. Information for comparison
5. Reporting management information

B - Cost recording

1. Accounting for materials
2. Accounting for labour
3. Accounting for other expenses

C - Costing techniques

1. Absorption costing
2. Marginal costing
3. Job and batch costing
4. Process costing
5. Service costing

D - Decision making

1. Cost- volume- profit analysis
2. Factors affecting short term decision making
3. Principles of discounted cash flow

E - Cash management

1. Nature of cash and cash flow
2. Cash management
3. Cash budgets
4. Investing and financing

MA2 - Managing Costs and Finances - EXAM KIT - PDF

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