Management Information (MA1)

Management
Information
(MA1)
Syllabus and study guide

September 2020 to August 2021

Designed to help with planning study and to provide

detailed information on what could be assessed in
any examination session

© ACCA 2020-2021 All rights reserved.

 Management Information (MA1)

Summary of content
Introduction
1. Intellectual levels
2. Learning hours and educational recognition
3. Qualification Structure
4. Guide to ACCA examination structure and
delivery mode
5. Guide to ACCA examination assessment
Management Information syllabus
6. Relational diagram linking Management
Information with other exams
7. Approach to examining the syllabus
8. Overall aim of the syllabus
9. Introduction to the syllabus
10. Main capabilities
11. The syllabus
Management Information study
guide
12. Detailed study guide
13. Summary of changes to Management
Information (MA1)

© ACCA 2020-2021 All rights reserved.

 Management Information (MA1)

1.Intellectual levels 2.Learning hours and

ACCA qualifications are designed to
education recognition
progressively broaden and deepen the
As a member of the International Federation
knowledge and skills demonstrated by the
of Accountants, ACCA seeks to enhance the
student at a range of levels on their way
education recognition of its qualification on
through each qualification.
both national and international education
frameworks, and with educational authorities
Throughout, the study guides assess both
and partners globally. In doing so, ACCA
knowledge and skills. Therefore, a clear
aims to ensure that its qualifications are
distinction is drawn, within each subject
recognised and valued by governments and
area, between assessing knowledge and
regulatory authorities and employers across
skills and in assessing their application
all sectors. To this end, ACCA qualifications
within an accounting or business context.
are currently recognised on the educational
The assessment of knowledge is denoted by
frameworks in several countries. Please
a superscript K and the assessment of skills
refer to your national education framework
is denoted by the superscript S.
regulator for further information about
recognition.

3.Qualification structure
The qualification structure requires candidates who wish to be awarded the Introductory
Certificate in Financial and Management Accounting to pass both the FA1 and MA1
examinations and successfully complete the Foundations in Professionalism module.

© ACCA 2020-2021 All rights reserved.

 Management Information (MA1)

4.Guide to ACCA 5.Guide to ACCA

examination structure examination
and delivery mode assessment
The structure of examinations varies. ACCA reserves the right to examine
anything contained within any study guide
The Foundations examinations contain within any examination session. This
100% compulsory questions to encourage includes knowledge, techniques, principles,
candidates to study across the breadth of theories, and concepts as specified.
each syllabus.
For specified financial accounting, audit and
All Foundations examinations are assessed tax examinations, except where indicated
by two-hour computer based examinations. otherwise, ACCA will publish examinable
documents once a year to indicate exactly
The pass mark for all FIA examinations is what regulations and legislation could
50%. potentially be assessed within identified
examination sessions.

For this examination regulation issued or

legislation passed on or before 31st August
annually, will be assessed from September
1st of the following year to August 31st of
the year after. Please refer to the
examinable documents for the exam (where
relevant) for further information.

Regulation issued or legislation passed in

accordance with the above dates may be
examinable even if the effective date is in
the future. The term issued or passed
relates to when regulation or legislation has
been formally approved.

The term effective relates to when regulation

or legislation must be applied to entity
transactions and business practices.

The study guide offers more detailed

guidance on the depth and level at which the
examinable documents will be examined.
The study guide should therefore be read in
conjunction with the examinable documents
list.

© ACCA 2020-2021 All rights reserved.

 Management Information (MA1)

6.Relational diagram linking Management Information

(MA1) with other exams

The Foundations in Accountancy suite of qualifications is designed so that a student can

progress through three discrete levels; RQF Level 2, 3, and 4. However, entry is possible at
any point. Students are recommended to enter Foundations in Accountancy at the level
which is most appropriate to their needs and abilities and to take examinations in order, but
this is not a requirement.

7.Approach to examining the syllabus

The syllabus is assessed by a two hour computer-based examination. Questions will assess
all parts of the syllabus and will include both computational and non-computational elements.
The examination will consist of 50 two-mark questions.

8.Overall aim of the syllabus

To develop knowledge and understanding of providing basic management information in an

organisation to support management in planning and decision-making.

9.Introduction to the syllabus

The syllabus for MA1, Management Information, introduces candidates to basic costing
principles and techniques and the tools with which to use these principles and techniques.

The syllabus starts by introducing business organisations and the specific role of
management accountant within the organisation. The next section deals with cost
classification followed by the identification of sources of information and coding, to ensure
that cost information is properly classified.

© ACCA 2020-2021 All rights reserved.

 Management Information (MA1)

The syllabus then introduces basic techniques for recording costs.

It finally introduces candidates to spreadsheets as an important tool in supporting cost and

management accounting.

© ACCA 2020-2021 All rights reserved.

 Management Information (MA1)

10.Main capabilities

On successful completion of this exam, candidates should be able to:

A Explain the nature and purpose of cost and management accounting

B Identify source documents in a costing systems and correctly code data

C Classify costs by nature, behaviour and purpose

D Record costs for material, labour and expenses

E Use spreadsheets in Microsoft excel

RELATIONAL DIAGRAM OF MAIN CAPABILITIES

© ACCA 2020-2021 All rights reserved.

 Management Information (MA1)

11.The syllabus

A The nature and purpose of cost and

management accounting

1. Nature of business organisation and the

accounting systems

2. Nature and purpose of management

information

B Source documents and coding

1. Sources of information

2. Coding system

C Cost classification and measurement

1. Cost classification and behaviour

2. Cost units, cost centres, profit centres

and investment centres

D Recording costs

1. Accounting for materials

2. Accounting for labour

3. Accounting for other expenses

4. Accounting for product costs

E Spreadsheets

1. Spreadsheets overview

2. Creating and using spreadsheets

3. Presenting and printing spreadsheet

data/information

© ACCA 2020-2021 All rights reserved.

 Management Information (MA1)

12.Detailed study guide e) Describe and identify sources and

categories of information.[K]
A The nature and purpose of
cost and management f) Explain the limitations of cost and
accounting management accounting information.[K]

1. Nature of business organisation and g) Describe the role of a trainee

accounting systems accountant in a cost and management
accounting system.[K]
a) Describe the organisation, and main
functions, of an office as a centre for B Source documents and
information and administration.[K] coding

b) Describe the function and use of a 1. Sources of information

manual of policies, procedures and best
practices.[K] a) Describe the material control cycle
(including the concept and calculation of
c) Identify the main types of transactions ‘free’ inventory, but excluding control
undertaken by a business and the key levels and EOQ) and the documentation
personnel involved in initiating, necessary to order, receive, store and
processing and completing issue materials.[K]
transactions.[K]
b) Describe the procedures and
d) Explain the need for effective control documentation to ensure the correct
over transactions.[K] authorisation, analysis and recording of
direct and indirect material costs.[K]
e) Explain and illustrate the principles and
practice of double-entry book-keeping.[S] c) Describe the procedures and
documentation to ensure the correct
f) Describe and illustrate the use of authorisation, coding, analysis and
ledgers and prime entry records in both recording of direct and indirect labour
integrated and interlocking accounting and expenses.[K]
systems.[S]
d) Describe the procedures and
g) Identify the key features, functions and documentation to ensure the correct
benefits of a computerised accounting analysis and recording of sales.[K]
system.[K]
2. Coding system
2. Nature and purpose of management
information a) Explain and illustrate the use of codes in
categorising and processing
a) State the purpose of management transactions.[S]
information.[K]
b) Explain and illustrate different methods
b) Compare cost and management of coding data. (including sequential,
accounting with external financial hierarchical, block, faceted and
reporting.[K] mnemonic).[K]

c) Distinguish between data and c) Identify and correct errors in coding of

information.[K] revenue and expenses.[S]

d) Describe the features of useful

management information.[K]

© ACCA 2020-2021 All rights reserved.

 Management Information (MA1)

C Cost classification and D Recording costs

measurement
1. Accounting for materials
1. Cost classification and behaviour
a) Distinguish different types of material
a) Define cost classification and describe (raw material, work in progress and
the variety of cost classifications used finished goods).[K]
for different purposes in a cost
accounting system, including by b) Describe and illustrate the accounting
responsibility, function, behaviour, for material costs.[S]
direct/indirect.[S]
c) Calculate material requirements making
b) Describe and illustrate the nature of allowance for sales and product/material
variable, fixed and mixed (semi-variable, inventory changes (control levels and
stepped-fixed) costs.[S] EOQ are excluded).[S]

c) Describe and illustrate the classification d) Explain and illustrate different methods
of material and labour costs.[S] used to price materials issued from
inventory (FIFO, LIFO and periodic and
d) Prepare, and explain the nature and cumulative weighted average costs).[S]
purpose of profit statements in
absorption and marginal costing 2 Accounting for labour
formats.[S]
a) Describe and illustrate the accounting
e) Calculate the cost and profit of a product for labour costs (including overtime
or service.[S] premiums and idle time).[S]

2. Cost units, cost centres, profit b) Prepare an analysis of gross and net
centres and investment centres earnings.[S]

a) Explain and illustrate the concept of cost c) Explain and illustrate labour
units.[K] remuneration methods.[S]

b) Explain and illustrate the concept of cost d) Calculate the effect of changes in
centres.[K] remuneration methods and changes in
productivity on unit labour costs.[S]
c) Explain and illustrate the concept of
profit centres.[K] 3 Accounting for other expenses

d) Explain and illustrate the concept of a) Explain the process of charging indirect
investment centres.[K] costs to cost centres and cost units and
illustrate the process of cost
e) Describe performance measures apportionment for indirect costs
appropriate to cost, profit and (excluding reciprocal service).[S]
investment centres (cost / profit per unit
/ % of sales; efficiency, capacity b) Explain and illustrate the process of cost
utilisation and production volume ratios; absorption for indirect costs including
ROCE / RI, asset turnover).[S] the analysis and interpretation of
over/under absorption.[S]
f) Apply performance measures
appropriate to cost, profit and 4 Accounting for product costs
investment centres.[S]
a) Job costing
(i) Describe the characteristics of job
costing [K]

© ACCA 2020-2021 All rights reserved.

 Management Information (MA1)

(ii) Calculate unit costs using job b) Explain how to enter values, text and
costing.[S] dates including automatically filling a
range of cells and capturing data from
b) Batch costing another source.[K]
(i) Describe the characteristics of batch
costing.[K] c) Identify and use formulae incorporating
(ii) Calculate unit costs using batch common arithmetic operators, use of
costing.[S] brackets, absolute/relative cell
references and simple functions (Sum,
c) Process costing Average, Round, IF).[S]
(i) Describe the characteristics of
process costing.[K] d) Identify and use formulae in a workbook
(ii) Calculate unit costs using process containing multiple worksheets and link
costing.[S] (note: split of losses into cells from different workbooks.[S]
normal and abnormal is excluded)
(iii) Describe and illustrate the concept of e) Describe how to move/copy and paste
equivalent units for closing work in data and formulae.[S]
progress.[S]
(iv) Calculate unit costs where there is f) Describe, and select as appropriate,
closing work-in-progress.[S] ways to edit data in a cell including the
(v) Allocate process costs between Find and Replace feature.[K]
finished output and work-in-
progress.[S] g) Explain the causes of common error
messages and how errors are
(vi) Prepare process accounts.[S]
corrected.[K]
E Spreadsheets h) Describe how to save, password protect
and open spreadsheets.[S]
1. Spreadsheets overview
3. Presenting and printing spreadsheet
a) Explain the purposes of a data/information
spreadsheet.[K]
a) Describe and illustrate appropriate
b) Describe the components of a blank formatting features for the display of
spreadsheet screen.[K] numbers, text, cell borders and patterns
and for cell/worksheet protection.[S]
c) Describe methods to use/activate
spreadsheet features.[K] b) Describe features which can be applied
to rows or columns (changing
d) Describe methods of selecting ranges of height/width, inserting, deleting and
cells.[K] hiding).[K]

e) Explain the role of spreadsheets in c) Describe features which affect the on-
management accounting.[K] screen view and can be particularly
useful when working with large
f) Describe the advantages and limitations worksheets/workbooks.[K]
of spreadsheets.[K]
d) Use Sort and Filter to manipulate data.[K]
2. Creating and using spreadsheets
e) Describe how charts (line, column, bar,
a) Explain factors which influence pie, scatter, area) can be created from
spreadsheet design and the features of a spreadsheet data and interpret the data
well-structured worksheet/workbook.[K] shown.[S]

© ACCA 2020-2021 All rights reserved.

 Management Information (MA1)

f) Describe and illustrate the appropriate

use of adding comments to a cell.[K]

g) Describe how to select the output to be

printed.[K]

h) Select the combination of page

layout/set-up options to achieve an
effective, user-friendly printed output,
especially for worksheets containing
large amounts of data.[S]

© ACCA 2020-2021 All rights reserved.

 Management Information (MA1)

13.Summary of changes to Management Information

(MA1)

ACCA periodically reviews it qualification syllabuses so that they fully meet the needs of
stakeholders such as employers, students, regulatory and advisory bodies and learning
providers.

There have not been any additions, deletions or amendments to the 2020/21 study guide for
from the 2019/20 study guide.

© ACCA 2020-2021 All rights reserved.