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BA2 Fundamentals of Management Accounting

BA2 Fundamentals of Management Accounting

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BA2 deals with the fundamental knowledge and techniques that underpin management accounting. It identifies the position of the management accountant with organisations and the role of CIMA. The subject portrays the role of management accounting in the contexts of commercial and public sector bodies and its wider role in society. The identification and classification of costs and their behaviour provides the basis for understanding and applying the tools and techniques needed to plan, control and make decisions. Budgetary control requires the setting of targets and standards which then allow the performance of organisations to be reported and analysed by the calculation of variances. Investment appraisal, break-even analysis and profit maximisation are used to inform both long and short-term decision making.

Syllabus areas:
A The Context of Management Accounting
B Costing
C Planning and Control
D Decision Making
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