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Accounts : Fundamentals of Management Accounting

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1.6 hours
No formal qualification
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Fundamentals of Management Accounting

This course, Management Accounting is another stop in your journey to become certified in Business Accounting, your ultimate CIMA Certification Qualification. Having successfully completed the fundamentals of Business Economics, this course portrays you on the fundamental Management Accounting concepts which will not only lead you to the CIMA qualification but also gain valuable insights on hands-on experience required for employment in the industry.

As any field or industry requires some form of accounting, this course Management Accounting will lay the foundation knowledge required to compete in any industry with respect to Finance and Accounting. Then when considering the fact that Accountants need to be managed by mangers, this course Fundamentals of Management Accounting also underpins the skills essential to become accounting managers.


1h 38m

Course media


Syllabus Structure

  • The Context of Management Accounting
  • Costing
  • Planning and Control
  • Decision Making


Chapter 1 - Accounting For Management

  • Introduction
  • Management Accounting
  • Definition
  • Objectives Of Management Accounting
  • Nature And Scope Of Management Accounting
  • Limitations Of Management Accounting
  • The Global Management Accounting Principles
  • Data And Information
  • What Makes Good Information?
  • The Different Levels Of Planning
  • Comparison Of Management Accounting With Financial Accounting
  • CIMA’s Professional Standards

Chapter 2 - Cost Classification And Behaviour

  • CIMA’s Professional Standards
  • Direct & Indirect Cost
  • Manufacturing & Non-Manufacturing Cost
  • Product & Period Cost
  • Job & Process Cost
  • Cost Behaviours
  • Fixed Costs
  • Variable Costs
  • Mixed Costs

Chapter 3 - Semi Variable Costs

  • High-Low Method
  • Regression
  • The Correlation Coefficient
  • Coefficient Of Determination

Chapter 4 - Accounting For Overheads

  • Introduction
  • Absorption Of Overheads
  • Reapportionment Of Service Cost Centre Overheads

Chapter 5 - Absorption Costing

  • Absorption Costing Income Statement
  • The Effect Of Absorption And Marginal Costing On Inventory Valuation And Profit Determination
  • Comparison On Impacts Of Inventory On Net Profit
  • Why Are There Two Systems?
  • Calculation Of Fixed Manufacturing Overhead Absorption Rate (OAR)

Chapter 6 - Marginal Costing

  • The Contribution Concept
  • Marginal Costing Income Statement

Chapter 7 – Cost Plus Pricing

  • Introduction
  • Full Cost-Plus Pricing
  • Marginal Cost-Plus Pricing

Chapter 8 – Budgeting

  • Functional Budgets
  • Master Budget
  • Cash Budget
  • Fixed Budget
  • Flexible Budget
  • Flexed Budget

Chapter 9 - Variance Analysis

  • Standard Costing
  • Sales Variance
  • Material Variances
  • Labor Variances
  • Variable Overhead Variances
  • Fixed Overhead Expenditure Variance
  • Format

Chapter 10 - Performance Measurement

  • Mission
  • Objectives
  • Critical Success Factors
  • Performance Indicators And Key Performance Indicators

Chapter 11 - Financial Performance Measurement

Chapter 12 - Non-Financial Performance Measurement

  • Financial Performance Measurements
  • Non-Financial Performance Measurement
  • Service Industries

Chapter 13 – Integrated Cost Accounting

Chapter 14 – Probability

  • Introduction
  • Simple Probabilities
  • Joint Probabilities
  • Expected Values
  • Advantages And Disadvantages Of Expected Values

Chapter 15 - Measures Of Average And Of Dispersion

  • Introduction
  • Variables
  • Frequency Distribution
  • Measures Of Average
  • Measures Of Dispersion
  • Chapter 16 - The Normal Distribution
  • Introduction
  • Characteristics Of The Normal Distribution
  • Rules

Chapter 17 – Break-Even Analysis

  • Introduction
  • Components Of Break-Even Analysis
  • Calculation Of Break-Even Analysis
  • Margin Of Safety
  • Contribution To Sales Ratio
  • Break-Even Chart
  • Profit-Volume Chart

Chapter 18 - Limited Factor Analysis And Make Or Buy Decisions

  • Introduction
  • Limited Factor Analysis
  • Six-Step Approach
  • Limitations
  • Make Or Buy Decisions

Chapter 19 – Interest

  • Introduction
  • Simple Interest
  • Compound Interest
  • Effective Rate
  • Discounting
  • Annuities
  • Perpetuities

Chapter 20 - Investment Appraisal

  • Introduction
  • Net Present Value
  • Internal Rate Of Return
  • Payback Period

Who is this course for?

  • School leavers
  • Small business owners
  • Undergraduates and graduates
  • Anyone with an interest in pursuing a career in management accountancy


The Fundamentals of Management Accounting does not require formal entry-level qualifications. Learners must be over the age of 16 and have basic knowledge in Mathematics, ICT and English Language.

Career path

Upon completing this module syllabus, you will be one step closer to having a career in business and finance. While this module does not give you direct access to gain employment, you have the opportunity to take the rest of the 3 modules in the CIMA Foundation Level Certificate. Companies worldwide, irrespective of their size require the services and knowledge of management accountants.

Questions and answers

Currently there are no Q&As for this course. Be the first to ask a question.


Reed courses certificate of completion

Digital certificate - Included

Will be downloadable when all lectures have been completed


Course rating


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