Syllabus Overview for LCCI Management Accounting Third Level (3023) Series 2,3 and 4

The aim of the examination is to test the candidate’s knowledge and understanding of the basic principles involved in short-term cost behaviour, short and long-term decision making and short-term profit control, cash management and product cost ascertainment

SYLLABUS CONTENT

1.0 Short-term Cost Behaviour
Effective assessment of the cost effects of the various alternatives open to management
Fixed, variable and semi-variable costs.
Segregation of semi-variable costs into fixed and variable components

2.0 Short-term Decision Making

• Basic principles upon which short-term decision should be based
• Marginal costs,
• Contribution Theory.
• Cost Volume Profit Analysis
• Preparation of break even charts-their value and limitations
• Differential costing
• Cash flow statements
• Key or limiting factors

3.0 Short-term Profit Control

Appreciation of the principles and comprehension of control documents
Principles of profit control; Preparation of standard costs and budgets; Variance analysis and the reporting of variances; Control standards; Control diagnosis.

4.0 Cash Management

• The effects of management decisions on the cash flows
• Concept of working capital; The effect of sales expansion on working capital; Product/Project life cycles; Cash Budgeting.

5.0 Long-term Decision Making and Control

Appreciation of useful techniques and the production of data
Long term financial planning; Discounted cash flow techniques ; Relevant costs

6.0 Product Cost Ascertainment

The methods by which the costs of operations, processes, departments or products are ascertained

Problem of charging overheads to products; Overhead analysis technique; Overhead absorption techniques ; Overhead under and over absorption

7.0 Transfer Pricing and Performance Evaluation

Its importance in decentralized organization

Reasons for transfer pricing and an introduction to the problems it may create within highly interdependent structures

8.0 Information Processing

An appreciation of system design

The influence of information technology upon management accounting systems; The collection, recording and presentation of information for decision making

EXAMINATION REQUIREMENTS

A three hour examination 5 questions to be answered from a choice of 6.
Graph paper will be provided and calculators can be used ( no printout, no word display facilities, silent and cordless)