Identify, gather, analyze and communicate management accounting information and how the information facilitates the performance of management functions.

Know the following:
1) Different types of costs for different purposes;
2) Behavior of costs according to changes in activity;
3) Cost-volume-profit relationships and essential features of CVP analysis and its underlying assumptions;
4) Concepts of relevant range, contribution margin and break-even point;

Identify and classify different types of costs used for different purposes
Distinguish and apply the concepts of fixed, variable and semi-variable costs to a relevant range.
Calculate contribution margin and break-even points - sales volume, sales, and selling price.
Prepare contribution margin format income statement.

Be aware that there are different costs for different purposes
Appreciate and apply CVP tools in profit planning of organizations

Learn the following:
1) Concepts of margin of safety and operating leverage;
2) Impact of profit targets and income tax into the CVP analysis;
3) Use of CVP in segment profitability analysis.
4) Different scenarios as applied to CVP analysis

Compute the margin of safety and operating leverage.
Determine volume, sales and selling prices needed to achieve a target profit.
Apply contribution margin in determining profitability of business segments

Appreciate and apply CVP tools in profit planning of organizations

Appreciate the following:
1) Role of product costing in manufacturing and non-manufacturing entities;
2) Flow of costs used in product costing;
3) Components and use of full cost information.
4.) Different modes of determining product costs

Describe the flow of costs for manufacturers and service providers
Identify the components of product/service cost
Differentiate the product costs from period costs
Distinguish between job order and process costing methods

Develop an awareness of how organizations develop their product costing methods
Focus on computing the product cost using the different costing methods

Comprehend the following:
1) Classification of costs according to traceability;
2) Cost objects or drivers
3) Purposes and criteria for allocating indirect costs and use of two-step allocation process;
4) Basis and use of predetermined overhead rate.

Identify and measure the direct and indirect costs of a product/service
Identify the possible cost objects or drivers
Determine the basis of allocating indirect costs

Appreciate the traceability of various costs to cost objects

Understand the following:
1) Limitations of traditional cost allocation methods and why it tends to distort product costs;
2) Uses of activity-based costing, identification of cost pools and cost drivers;
3) Several key issues in activity-based costing, including criteria for choosing cost drivers.

Describe the weaknesses of traditional cost allocation methods
Describe the process of activity-based costing method and identify the cost pools and cost drivers
Calculate the cost of the product using ABC versus the traditional costing methods

Be aware of the different methods of allocating indirect costs

Know the following:
1) Difference between absorption and variable costing methods and their impact to financial statements and inventory values;
2) Reconciliation of income under absorption and variable costing;
3) Concepts of joint costs and the different methods of determining product costs beyond split-off point;
4) Review and wrap up of Sessions 8 & 9 and long examination.

Contrast the absorption and variable costing methods
Compute the cost of the product under each method
Prepare income statement using absorption and variable costing
Determine the impact of each method to net income
Explain the advantages and disadvantages of each method

Identify the joint costs of a product/service

Internalize the difference between absorption and variable costing and their effects on the financial statements

Learn the following:
1) Concept of standard cost and its uses for budgeting and control;
2) Ways of setting up standard production costs; 3) Difference between ideal and practical standard costs.

Determine the components of standard costs
Identify the methods used for setting standard costs
Explain the advantages and disadvantages of standard costs

Understand the following:
1) Concepts and uses of variances and the different types of variances;
2) Components of production cost variances;
3) Formulas for computing production cost variances;
4) Factors that influence favorable or unfavorable production cost variances;  5) Who are accountable for these variances?

Describe the concepts of variances
Identify the different types of production cost variances
Compute the different production cost variances
Explain the factors to affect favorable and unfavorable variances

Develop awareness of the existence of production cost variances and the benefits derived in determining the various variances.

Know the following:
1) Different types of marketing variances and the methods of decomposing those variances;
2) Other types of variances such as general and administrative and other non-operating items
3) Factors that influence these variances and who are accountable for these variances

Identify the types and components of various marketing and administrative expense variances
Compute the marketing and administrative variances
Describe the factors that affect these variances

Understand the following:
1) Complete variance analysis and application of "management by exception" 2) Review and wrap of  Sessions 15 & 16

Compute the overall variance and demonstrate on how to disaggregate the variance into various production, marketing and administrative expense variances

Appreciate the value of complete variance analysis and the benefits derived from the process

Describe the concepts of differential revenues and costs
Calculate relevant revenues and costs for alternative choices;
Determine irrelevant and sunk costs;
Identify the various short-run choice decisions that confront management;
Assess both the quantitative and non-quantitative factors that should be considered in short-run decisions;
Make decision based on these factors

Be aware of the quantitative evaluation of short-run choice decisions in organizations
Internalize the process of differential accounting as applied to the various scenarios under the short-run choice decision

Know the following:
1.) Concept of a management control system (MCS) - the control environment and process
2.) Elements of the control environment and process
3.) Components of the MCS and their features
4.) Relationships among the components of the MCS
5.) Role of MCS in the implementation of company strategies

Identify the components of the management control environment and process
Describe the features of the component of the MCS
Explain the relationships of each component and the roles they play in effective and efficient implementation of strategy

Appreciate the importance of the management control system in an organization

Assess the effects of the management control process on the human behavior
Evaluate impact of the control process on commitment and interactions among different levels in organization