6AG507 Management Accounting Performance Evaluation Revision notes Areas to cover: Remember the areas may be mixed together

within a question. 20%-30% of mar s can be from numbers and ca!cu!ations" #0% -$0% based on discussion. %anagement contro! systems o %ode!s of contro! systems" o feedbac and feedforward" o %anagement accounting systems and their !imitations" o res&onsibi!ity centres and divisiona!isation" o dysfunctiona! consequences o 'ontro!!abi!ity &rinci&!e o 'ontingency theory o 'ontro! in not for &rofit organisations o 'ontro! of non manufacturing costs eg discretionary costs (udgeting o )!anning * contro! o +trategic" tactica! and o&erationa! &!anning o ,hy budget- .o &!an" co-ordinate" communicate" motivate" contro!" eva!uate o .y&es of budgets o 'a!cu!ating f!exed budgets * cash budgets o (ehavioura! as&ects o 'riticisms of budgeting 'ost management /reduction0 o .1% 2 .ota! qua!ity management o 3ai4en costing o A(% 2 Activity based management o ()R 2 (usiness &rocess reengineering o 56. 2 5ust in time o 7a!ue chain o (enchmar ing o .arget costing" o 8ifecyc!e costing" o .hrough&ut accounting

o 9nvironmenta! management accounting )ricing o :actors affecting demand o 9conomic theory and the &rob!ems of a&&!ying it o ,hat inf!uences &rice o Ro!e of cost information in &ricing decisions o ;ifferent methods of &ricing eg cost &!us" +hort term contribution" negotiated" target costing o )ricing strategies eg mar et s imming" &remium &ricing etc o 'ustomer &rofitabi!ity ana!ysis ;ivisiona! &erformance o R<6 2 return on investment o 6m&act of de&reciation on asset base o +hort term view o R6 2 Residua! income o 97A.% 2 9conomic va!ue added o ;ysfunctiona! behaviour o ;ecentra!ised= centra!ised businesses .ransfer &ricing o )ur&oses of transfer &ricing o ;ifferent methods 2 mar et based" margina! cost" fu!! cost" cost &!us a mar u&" negotiated o Reso!ving transfer &ricing conf!icts o 6nternationa! transfer &ricing issues +trategic management accounting o 'haracteristics o .echniques o (a!anced scorecard .he four different &ers&ectives- exam&!es on ob>ectives and measures for a!! four areas. (enefits 'riticisms 6m&!ementation issues o ?ot for &rofit organisations

 'hanging ro!e of the management accountant 7ariance ana!ysis /)rerequisite now!edge0 o %ix * yie!d o )!anning * o&erationa!