BA2

When was CIMA established

1919

Can CIMA members work outside UK?

Yes

Do management accountants implement corporate governance?

No

3 management accountants positions

Business partner, shared service centre, outsourcing centre

Global management accounting principles

Communication provides influential insight, information is relevant, impact on value is analysed, stewardship builds trust

GMAP objective of communication provides influential insight

Drive better decisions about strategy and execution at all levels

GMAP objective for information is relevant

Help organisations plan for and source info needed for creating strategy and tactics for execution

GMAP objective for impact on value is analysed

Simulate different scenarios that demonstrate cause and effect between inputs and outcomes

GMAP stewardship builds trust objective

Actively manage relationship and resources so financial and non financial assets, reputation and value of organisation are protected

Classify costs by:

Nature, function, behaviour, responsibility

What type of cost is NI

Direct

4 types of environmental costs

Environmental prevention, environmental appraisal, environmental internal failure, environmental external failure

Relevant cost

Future cost, direct consequence of decision, avoidable is decision not taken

Responsibility accounting

Separates costs by e.g. department so manager is responsible for those costs, splits them into controllable and uncontrollable costs

Differential cost

Aka incremental cost, increase in cost that arises as a result of a decision

Equation for b, regression analysis

b= (n(sumxy)-(sumx)(sumy)) / (n(sumx²) - (sumx)²)

Equation to find a, linear regression

a=meany - b(meanx)

Equation for r

r = (n(sumxy) - (sumx)(sumy) / root((n(sumx²)-(sumx)²)(n(sumy²)-(sumy)²))

CIMA code of ethics principles

Integrity, objectivity, professional competence and due care, confidentiality, professional behaviour

Nature of info for strategic managers

Unstructured, externally focused, highly summarised, uses estimates, forward looking

Nature of management/tactical info

Routine reports e.g. budgets and productivity measurements, summarised a bit, generated internally

Nature of operational info

Detailed, structured, numerical, derived from historical internal sources

Direct or indirect expenses

Basic pay - direct

NI - direct

Overtime premium - indirect (unless for specific job)

Bonus - indirect (unless specific job)

PAYE income tax - d