CWA ICWA Final : Group IV - Management Accounting – Enterprize Performance Management

ICWAICWA ICWA (2008)FinalSyllabus and Books • Group IV - Management Accounting – Enterprize Performance Management

ICWA :: Final
Paper 15 : Management Accounting - Enterprise Performance Management
[One Paper: 3 hours:100 marks]

Objective . . .

To understand the importance of performance measurement - both financial and non financial
To develop the skill of decision making to have competitive advantage
To gain knowledge of different tools of quality management
1.Management Control Systems10%
Control Systems within the framework of the organization
The application of control systems and related theory to the design of management accounting control systems
Structure and operation of management accounting control systems
Behavioural consequences of using management accounting controls);
Variation in control needs and systems dependent on organizational structure
Management accounting system - need for detailed costing, overhead allocation and budgeting, identification of non-value adding activities in the accounting function
2.Operations Management15%
An overview of operations strategy and its importance
Systems used in operations management: Manufacturing Resource Planning (MRP), Optimised Production Technologies (OPT), Just-in-Time (JIT) and Enterprise Resource Planning (ERP).
Use of the Intranet in information management
Strategies for balancing capacity and demand including level capacity
Demand management strategies.
Benchmarking and Business Process Re-engineering (BPR).
3.Cost Planning and Analysis for Competitive Advantage25%
Value analysis and quality function deployment.
The benefits of just-in-time production, total quality management and theory of constraints
Kaizen costing, continuous improvement and cost of quality reporting.
Learning curves and their use in predicting product/service costs, derivation of learning rate and learning index.
Activity-based management in the analysis of overhead and its use in improving the efficiency of repetitive overhead activities.
Multi-product break-even analysis, including break-even and profit/volume charts, contribution/sales ratio, margin of safety etc.
Simple product mix analysis in situations where there are limitations on product/service demand and one other production constraint.
Target costing.
Life cycle costing and implications for marketing strategies.
Value chain and supply chain management
Strategic Total Cost Management
4.Treatment of Uncertainty in Decision Making20%
The nature of risk and uncertainty.
Sensitivity analysis in decision modeling and the use of computer software for 'what if' analysis.
Assignment of probabilities to key variables in decision models.
Analysis of probabilistic models and interpretation of distributions of project outcomes.
Expected value tables and the value of information.
Decision trees for multi-stage decision problems.
5.Enterprise performance measurement systems15%
Balanced Score Card, EVA
Segment Performance
6.Quality Management15%
Approaches to quality management, including Total Quality Management (TQM), Statistical Quality Control (SQC) .
The use of benchmarking in quality measurement and improvement.
Practices of continuous improvement (e.g. Quality circles, Kaizen, 5S, 6 Sigma).
Different methods of quality measurement (i.e. operational, financial and customer measures)
Contemporary developments in quality management.
External quality standards (e.g. the various ISO standards appropriate to products and organizations).
Global awards for best practices and business performance

Recommended Books

Introduction to Management AccountingHorngren & SundemPrentice Hall
Cost Accounting: A Managerial EmphasisHorngren, Foster & DatarPrentice Hall
Management Accounting: A Decision EmphasisJessie, Raiborn & KenneyJohn Wiley
Management Accounting and Financial ControlS.N.MaheswariSultan Chand
Management AccountancyJ.BattyMcDonald & Evans
Financial policy and Management AccountingBhabatosh BanerjeeWorld Press
Managerial AccountingAnderson, Needles And Caldwell Houghton Mifflin Co.
Management AccountingI.M.PandeyVani Publication
Management AccountingR.anthonyTarapore Wala
Accounting for Managerial DecisionsBhattacharya And Dearden Prentice Hall
Advanced Management AccountingRobert KaplanPrentice Hall