F2 – Management Accounting

Management Accounting introduces candidates to costing principles and techniques, and elements of management accounting which are used to make and support decision-making.   The syllabus starts by introducing the nature and purpose of cost accounting, distinguishing it clearly from financial accounting. The next section is cost classification and behaviour.   This is followed immediately by applied business mathematics and the use of computer spreadsheets, which are essential for candidates to understand the measurement and behaviour of business costs and to be able to classify them accordingly.   The next area of the syllabus represents a central part of this paper and it introduces candidates to a variety of costing techniques used in business. It is followed by the preparation and use of budgeting and standard costing as essential tools for planning and controlling business costs.   The syllabus finishes with an introduction to the use of management accounting in supporting decision-making.