Management Accounting

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I/A Accounting

Management Accounting

1. Management accounting – Its nature, purposes, place in general accounting theory, role in general and strategic decision making process of management, comparisons with other areas of accounting

2. Definitions of cost, cost classification, cost behaviour

3. Costing issues – Cost accumulation; cost allocation, apportionment, absorption; overheads, overhead absorption rates, under and over-recovery of overheads, normal and actual costing

4. Absorption and marginal costing – Definitions, method of application, comparison

5. Activity based costing – Emergence, process, comparison with traditional costing methods, arguments for and against

6. Pricing – Factors affecting pricing decisions, demand and cost based approach to pricing, pricing methods (target costing in particular), update of pricing systems, pricing policies

7. Budgeting I – The planning process, nature and purpose of budgets, the budgeting process, types of budgets, steps in the preparation of master budgets

8. Budgeting II – The behavioural aspects of budgeting (motivation and participation in particular)

9. Standard costing I – Standard setting, types of standards, comparison with budgeting; reasons for the occurrence, interdependence and the criteria for the investigation of variances

10. Standard costing II – Fixed, flexible and flexed budgets, types and calculation of variances, operating statement

11. CVP – Economists’ and accountant’s model of cost behaviour, cost-volume-profit analysis (break-even point, margin of safety, C/S ratio, profit-volume ratio), assumptions and limitations of CVP analysis

12. Decision making – Relevant and irrelevant costs, make or buy decisions, segmental profitability, selling price decisions, limiting factors

Controlling and Internal Auditing

1.Customer satisfaction and its supporters in controlling – key success factors; continuous improvement; total value chain analysis; employee empowerment

2.Transfer pricing – alternative transfer pricing methods; practical use of different methods; taxation aspects

3.Controlling systems – action, social, and results control; the controllability principle and its implementation; latest international developments

4.Planning and executing the internal audit – role and purposes of audit; forms of internal audit; internal audit process; audit reports

I/B Corporate Finance

Financial Management

1.Investment Decisions – DCF Criteria (NPV, IRR, Mutually exclusive projects, EAC, Profitability index); Payback criteria (payback period, discounted payback)

2.Project evaluation principles – Stand alone principle; Incremental cash flow; Opportunity cost of capital; Importance of Working Capital; Erosion; determining discount rate

3.Cost of capital I. – Risk (Standard deviation, CAPM, Beta, market risk, unique risk)

4.Cost of Capital II. – Return (Market risk premium, SML, rates of return)

5.Cost of Capital III. – Cost of capital (Capital structure, Cost of debt, Cost of equity, WACC, Hurdle rate)

6.Planning and forecasting – Financial statement analysis (Vertical and Horizontal analysis, Financial ratio analysis; Sales percentage method, growth rates)

7.Corporate valuation I. – Dividend Discount model (Gordon DDM; Two stage DDM; application of DDM)

8.Corporate valuation II. – Discounted cash flow valuation; inputs of DCF model; Overview of DCF models (DDM; FCFF; FCFE)

Advanced Finance

1. Valuation basics: why do we value, what do we call value, common misbelieves about valuation

2. Operational value: its determination, the process of valuation

3. Differences between accounting figures (earnings) versus Free cash flow. Which are the different purposes for which each set of data must be used?

4. What are the typical value drivers? How are they interlinked and how do they change during the lifecycle of any business?

5. What are the key...
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