STRATEGIC
MANAGEMENT
ACCOUNTING
Syllabus Weightage
Part A – Cost Planning, Analysis and Techniques 25%
Part B – Pricing and Product Decisions 40%
Part C – Performance Management and Responsibility Centre 35%
Part A – Cost Planning, Analysis and Techniques 25%
1. Cost Planning 3. Cost Management Techniques
• Learning Curve • Traditional vs Modern Manufacturing Philosophy
• Life Cycle Costing • Just-in-time (JIT)
• Target Costing • Kaizen Costing
• Value Analysis • Total Quality Management
• Functional Analysis • Business Process Re-engineering
2. Cost Analysis 4. Externally Oriented Cost Management Techniques
• Activity Base Costing (ABC) • The Value Chain
• Activity Base Management (ABM) • Supply Chain Management
• Direct Product Profitability (DPP) • Outsourcing
• Customer Profitability Analysis (CPA) • Partnering, incentives and gain-sharing arrangements
• Distribution Channel Profitability
• Activity-based profitability analysis
• Pareto analysis
Part B – Pricing and Product Decisions 40%
5. Relevant Costs 7. Risk And Uncertainty
• Relevant Costs and Revenues
• Risk and uncertainty in decision making
• Opportunity Cost
• Probability analysis and expected values
• The Relevant Cost of Materials
• Data tables
• The Relevant Cost of Labour
• The maximin, maximax and minimax regret bases for decision making
• The Relevant Cost of Overheads
• Using the standard deviation to measure risk
6. Short-term Decisions
• Decision trees
• Presentation guidelines
• The value of information
• Acceptance/rejection of contracts
• Sensitivity analysis
• Minimum pricing
• Simulation models
• Extra shift decisions and overtime
8. Linear Programming: the Graphical Method
• Make or buy decisions
• Graphical method
• Either/or problems
• Graphical method using simultaneous equations
• Shutdown problems
• Sensitivity analysis
• Choosing between options
• Allocation of joint costs
Part B – Pricing and Product Decisions (continued……)
9. Linear Programming: the Simplex method 11. Pricing Decisions and Pricing Strategies
• Principles of the simplex method • Demand base pricing
• Sensitivity analysis • Other issues that influence pricing decisions
• Using computer packages • Deriving the demand curve
• Using linear programming • Profit maximizing price
• Breakeven Analysis in a Multi-Product Environment • Full cost pricing
10. Multi-product Breakeven Analysis • Marginal cost-plus/Mark-up pricing
• Drawing a basic breakeven chart • Pricing based on mark-up per unit of limiting factor
• Breakeven point for multiple products • Pricing strategies for new products
• Contribution to sales (C/S) ratio for multiple products • Other pricing strategies
• Sales/product mix decisions
• Target profits for multiple products
• Margin of safety for multiple products
• Multi-product breakeven charts
• Further aspects of breakeven analysis
• Sensitivity analysis
Part C – Performance Management and Responsibility Centre 35%
12. Budgetary Control 14. Measuring Performance in Divisional Business
• Flexible Budgets and Budgetary Control • Responsibility Centres
• System design • Return on Investment (ROI)
• Using Spread sheets to build business models • ROI and decision making
• Rolling Budgets • Residual Income (RI)
• Behavioral implications of budgeting • Economic Value Added (EVA)
• Budget Participation 15. Transfer Pricing
• Use of Budgets as Targets • Basic principles of transfer pricing
• Budget and Motivation • General rules
• Beyond Budgeting • Use of market price as a basis for transfer prices
13. Performance Evaluation • Transfer pricing with an imperfect external market
• Financial Performance Indicators • Transfer pricing when there is no external market for the transferred item
• Non-Financial Performance Indicators • Transfer pricing and changing costs/prices
• The Balanced Scorecard • Identifying the optimal transfer price
• Benchmarking • Negotiated transfer prices
• International transfer pricing
SYED AHMED RAZA
QUALIFICATION FCMA, MIPA, APA (Australia), FIA (UK)
EXPERIENCE +7 years corporate experience with blend of Manufacturing
and Banking sectors
+12 years teaching experience of professional qualification
including ICMAP, CIMA and ACCA
CONTACT 0333-33372344
+61432410503 (WhatsApp only)
[email protected]CONSULTATION 6:00 PM to 8:00 PM
HOURS
(Tuesday & Friday)
