Management Accounting

Introduction

Updated January 2018

Valid for exams in 2018

Management Accounting

First published 2016

CIPFA

77 Mansell Street

London E1 8AN
+ 44 (0)20 75435600

Email: CustomerServices@cipfa.org

Website: www.cipfa.org.uk

Copyright © 2016 Chartered Institute of Public Finance and Accountancy

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action as a result of any material contained herein.

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 Introduction

Table of contents
Management Accounting overview ................................................... 4
1 Syllabus ..................................................................................... 5
2 Examination ............................................................................... 6
3 Required knowledge .................................................................. 7
4 Overview of the learning materials ............................................ 8
5 Approach to learning ................................................................. 9
6 Revision strategies ...................................................................10
7 Developing a study plan ............................................................11
8 Where to get help .....................................................................12

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Management Accounting

Management Accounting overview

The management accounting module concentrates on management
accounting tools and techniques and sets out the underlying principles
of budgeting, costing, decision making and problem solving in
organisations in both the public and private sectors.

This module is intended to provide knowledge and skills in the areas of

costing, budgeting and decision making that are relevant to aspects of
the Business & Change Management and Financial Management
modules at Diploma Level. It is therefore recommended that the
candidate completes MA before studying these modules. The module is
also relevant to both of the Strategic Level modules: Strategic Case
Study and Strategic Public Finance.

Often the concepts in Management Accounting are easiest to envisage

and therefore to understand and apply in the private sector, such as the
manufacturing of goods, where the products delivered are tangible and
generally homogenous. Once the concept is understood it is then easier
to see how the same techniques and principles can be applied in the
public and not-for-profit sectors (where applicable).
This will generally be the approach that we take in the workbooks that
make up these study materials.

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 Introduction

1 Syllabus

Overall aim

A Explain the role and scope of management accounting 5%

B Explain the behaviour of costs and explain and apply 30%

cost accounting techniques

C Explain the nature and purpose of budgeting and apply 30%

appropriate techniques to draw up operational and cash
budgets

D Evaluate performance and make decisions based on cost 35%

and budget data

You can find the detailed Management Accounting syllabus on the CIPFA
website at: www.cipfa.org/Qualifications/Professional Qualification (PQ)
There is a zipped file containing all PQ syllabuses

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Management Accounting

2 Examination
The exam is a two hours long on-line test.
The exam will consist of 60 Objective Tests (Multiple Choice or
Multiple Response questions).
The overall balance of the examination questions will reflect the syllabus
weightings, shown on page 5.
The questions will be in one of four categories:

• Knowledge
• Understanding
• Application
• Analysis

The latter two will often involve some form of calculation.

The pass mark is 60% (36 / 60)

All questions will have equal weighting. There is no negative marking

– so do not leave any unanswered.

Students will be expected to sit this examination at work or at home.

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 Introduction

3 Required knowledge
There is no specific prior knowledge that is required before attempting
this module. The first workbook lays out an introduction and
background to the roles and functions of the management accountant.
You will find that the level of knowledge and understanding required for
the Financial Management and Business & Change Management
modules are higher than for Management Accounting.
Consequently a sound basis of knowledge gained in this module
is of crucial importance.

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Management Accounting

4 Overview of the learning materials

The core Management Accounting learning materials consist of five
workbooks and solutions packs. Each of the five workbooks covers a
number of different concepts and techniques as follows:

No. Workbook name Topic(s) covered

1 The role and scope Nature and purpose of MA; information to

of Management support decision making; strategic MA.
Accounting Links to Section A of the syllabus.

2 Cost Behaviour and Cost definitions; introduction to standard

Cost Accounting costing; costing techniques, absorption
Techniques costing; activity based costing.
Links to Section B of the syllabus.

3 Budgeting Budgetary control; budgeting models;

preparation of budgets.
Links to Section C of the syllabus.

4 Financial Control Budgetary control; Standard Costing and

Variance Analysis; Statistical Analysis.
Links to Section D of the syllabus.

5 Financial Decision Applying relevant costing principles to

Making short-term decisions; Cost volume profit
analysis; alternative costing techniques.
Links to Section D of the syllabus.

Accessing the learning materials

All of the workbooks and solutions are available to download from the
CETC website. If you choose to print the workbooks, it is recommended
that you print them two pages to a side of A4. Note that whilst the
workbooks do contain some colour, they have been designed to be
clearly readable when printed in black and white.

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 Introduction

5 Approach to learning
The CETC workbooks are designed to aid your study with clear
explanations of the key concepts and techniques and plenty of exercises
for you to practise the application of these techniques.
You are strongly advised to read the material very carefully and to
undertake all of the exercises.
It is recommended that you work through the workbooks in numerical
order, ensuring that you fully understand each workbook and have
attempted all exercises and questions before moving on to the next
workbook.
The importance of practising exam questions cannot be emphasised
enough.

The Management Accounting exam will be time pressurised,

comprising 60 Objective Tests which need to be completed in two hours
(an average of 2 minutes per question).

In this type of examination it is not worthwhile spending a lot of time on

a question of which you are unsure – leave it and come back to it at the
end. The on-line system allows you to flag unanswered
questions.

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Management Accounting

6 Revision strategies
The amount of revision required will depend on how well you have
absorbed the knowledge gained in your initial study of the workbooks.
The most important element of revision for the Management Accounting
exam is practising exam style questions under time pressure. This
means that you should try to attempt questions (without looking at your
notes) within the time allocated.

CIPFA Education and Training Centre provide several services to assist

you with your revision, including CIPFA Exam Essentials (CEE)
revision guides and a Question Bank of examination standard questions.
For more information please see www.cipfa.org/cetc.

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 Introduction

7 Developing a study plan

For students attending value added courses with CIPFA Education and
Training Centre (CETC) you will be given further information during your
course on how to structure your study time and what should be studied
each week.
For those students who are studying by distance learning, you may find
it useful to plan out as soon as possible what you will study and when.
Individual speeds of studying vary, but as a rough rule of thumb, it is
likely to take you at least 5 hours for the first workbook and at least 15
- 20 hours to initially work your way through each of the other four
subsequent workbooks. This includes the time required to work through
the exercises and exam questions.
This does not include your revision time. You should allow at least a
further 2 weeks to revise all of the knowledge gained during your
studies.

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Management Accounting

8 Where to get help

You will find lots of useful guidance for students on CIPFA’s website
www.cipfa.org/Qualifications/Professional Qualification (PQ)
Your main point of contact for queries is CIPFA’s student support
helpline:
studentsupport@cipfa.org
Tel: 020 7543 5600
The help-line offers advice and support on:
• Exemptions
• Examination and case study preparation
• Examination deadlines & registration
• Help with online information for students
• Practical Experience Portfolio (PEP)
You should also contact Student Support for any queries relating to
accessing and downloading learning materials.

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77 Mansell Street
London E1 8AN
+ 44 (0)20 75435600
Email: studentsupport@cipfa.org
Website: www.cipfa.org.uk