The Introduction to Management and Cost Accounting module is part of the Knowledge Level (Level 1) in the ICAG professional qualification syllabus. It aims to develop candidates’ understanding of fundamental cost and management accounting principles, techniques, and their application in decision-making. Below is the syllabus coverage in tabular form, including main topics and their approximate weightings (guiding study time and exam mark allocations).
| Syllabus Topic | Description | Weighting (%) |
|---|---|---|
| A. Nature, scope, and purpose of management and cost accounting | Explains the nature, scope, purpose, and role of management and cost accounting, including differences from financial accounting, users of management accounting information, and its role in planning, control, and decision-making. | 5 |
| B. Cost accounting techniques | Covers cost classification (direct/indirect, fixed/variable, product/period), cost behavior, cost accumulation, cost allocation, absorption costing, marginal costing, and preparation of cost statements for decision-making. | 20 |
| C. Costing systems | Describes costing systems, including job costing, batch costing, process costing, and service costing, with emphasis on their application in different business environments. | 15 |
| D. Budgeting and budgetary control | Explains the budgeting process, including types of budgets (e.g., sales, production, cash), preparation of functional budgets, flexible budgets, and the role of budgetary control in performance evaluation. | 20 |
| E. Standard costing and variance analysis | Introduces standard costing principles, types of standards, calculation of variances (material, labor, overhead), and their use in performance evaluation and control. | 15 |
| F. Cost-volume-profit (CVP) analysis | Covers CVP analysis, including break-even analysis, margin of safety, contribution margin, and its application in short-term decision-making. | 10 |
| G. Decision-making techniques | Explains basic decision-making techniques, including relevant costs, make-or-buy decisions, limiting factors, and pricing decisions based on cost information. | 10 |
| H. Introduction to performance measurement | Describes basic performance measurement techniques, including financial and non-financial performance indicators, and their role in assessing business efficiency and effectiveness. | 5 |
