BA2 FUNDAMENTALS OF MANAGEMENT ACCOUNTING

Get to grips with the industry basics, including the CIMA definition of management accounting, and the role of the management accountant within a business. Understand the importance of cost control and responsibility accounting. Learn more about the background to the formation of the CIMA and the need for it to exist as a professional body in management accounting. Explore the classification of costs and the behaviour and activity levels of them. Learn the importance of budgeting and planning, from functional and master budgets, to interpreting statements and variances. Learn how to prepare financial statements for the purpose of management perusal, and distinguish between the various managerial reports across a diverse range of organisations and enterprises. Understand the contribution concept, and implement cost-volume-profit analysis, while also being able to explain make or buy decisions and the importance of valuing long term investments.