The Management Accounting module is part of the Skills Level (Level 2) in the ICAG professional qualification syllabus. It builds on the Knowledge Level, focusing on applying management accounting techniques to support business decision-making, planning, and control in various organizational contexts. 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. Management accounting and its role in organizations | Explains the role of management accounting in strategic, tactical, and operational decision-making, its integration with organizational goals, and differences from financial accounting, including sustainability considerations. | 5 |
| B. Cost accounting techniques and systems | Applies advanced cost classification (e.g., by behavior, function, relevance), absorption and marginal costing, activity-based costing (ABC), and costing systems (job, batch, process, service) to complex scenarios. | 15 |
| C. Budgeting and forecasting | Develops and applies budgets (e.g., master, functional, flexible, zero-based), forecasting techniques (e.g., time series, regression), and evaluates budgetary control systems for performance monitoring. | 20 |
| D. Standard costing and advanced variance analysis | Applies standard costing in complex scenarios, calculates and interprets advanced variances (e.g., mix, yield, planning, operational), and uses them for managerial control and decision-making. | 15 |
| E. Cost-volume-profit (CVP) analysis and decision-making | Uses CVP analysis for multi-product scenarios, break-even analysis, contribution analysis, and applies relevant costing principles to short-term decisions (e.g., make-or-buy, product mix, outsourcing). | 15 |
| F. Performance measurement and control | Evaluates financial and non-financial performance indicators (e.g., balanced scorecard, KPIs), divisional performance (ROI, residual income), and transfer pricing methods in decentralized organizations. | 15 |
| G. Strategic management accounting | Introduces strategic tools like value chain analysis, lifecycle costing, target costing, and benchmarking to support long-term planning and competitive advantage. | 10 |
| H. Impact of technology and risk management | Analyzes the impact of technology (e.g., ERP systems, data analytics, automation) on management accounting, and applies risk management techniques (e.g., sensitivity analysis, scenario planning) to decision-making. | 5 |
