Applied Management Accounting
Budgets, standard costing and variances, performance measures and the decision tools a management accountant uses to help a business plan and control.
Subsections
Read the lessons, then take the check. The check pulls in anything you struggled with earlier in the unit.
Budgeting and forecasting
Build connected operating and cash budgets, interpret forecasts and adjust plans when activity or assumptions change.
- Building connected budgets5 min
- Forecasting costs and demand5 min
- Cash, flexing and budget methods5 min
Standard costing and variance analysis
Calculate and interpret material, labour, overhead and sales variances, then reconcile the effect on profit.
- Materials and labour variances5 min
- Variable and fixed overhead variances5 min
- Sales variances and profit reconciliation5 min
Performance indicators and decision making
Evaluate financial and operational performance and select actions using scarce resources and relevant cash flows.
Strategic costing and budgetary control
Use product and activity perspectives to manage long term costs and encourage responsible behaviour.
Integrated management accounting casebook
Follow a manufacturing decision from capacity planning through the operating statement to a recommendation to directors.
- Capacity, outsourcing and relevant costs5 min
- Reconciling the operating statement5 min
- Investment decisions and responsibility centres5 min
Mixed unit review
Fifteen questions drawn from the whole unit, weighted towards the topics you have got wrong before. Nothing is flagged for revision right now.
Planning and control at Pennine Outdoor Furniture
You are the assistant management accountant at a UK maker of garden furniture. Prepare next month’s plan, review a completed batch and advise the operations director. Each step supplies its own figures. Amounts exclude VAT; input pounds or quantities without currency symbols or commas. Unless stated, there is no idle time and fixed costs remain unchanged.
Timed mock exam
Open timed mockHow this unit is assessed
Computer based assessment, eight tasks, 100 marks, computer & human marked.
| Task | Focus | Marks |
|---|---|---|
| 1. Budgeting process | Stakeholders, budget types and behaviour | 12 |
| 2. Preparing budgets | Functional and flexed budgets | 14 |
| 3. Variance analysis | Cost and sales variances | 16 |
| 4. Operating statements | Reconciling budget to actual | 12 |
| 5. Performance indicators | Ratios and non financial measures | 12 |
| 6. Decision making | Limiting factor and relevant costs | 12 |
| 7. Strategic costing | Life cycle and target costing | 10 |
| 8. Written report | Explaining results to management | 12 |