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The two subjects (Advanced Management Accounting and Advanced Strategic Management Accounting) offered in the CMA program is also available as a 7 one day seminar option.

Subject 1 : Advanced Management Accounting

Objectives :
On completion of this subject students should have developed skills of analysis, evaluation and synthesis in cost and management accounting and, in the process, created an awareness of current developments and issue in the area. The subject covers the complex modern industrial organisations within which the various facets of decision-making and controlling operations take place; the subject includes discussion of costing systems and activity based costing, activity management, and implementation issues in modern costing systems.

Synopsis :

• identify the basic conventions and doctrines of managerial and cost accounting and other generally accepted principles which may be applied in the contemporary cost management models.

• identify major contemporary issues that have emerged in managerial accounting.

• discuss a number of issues relating to the design and implementation of cost management models in modern firms.

Topics Covered :

Topic 1 : Management Control Systems

The role of accounting is often stated to be providing information for decisions. Management accounting, however, fulfils a much broader role in organisations. As well as providing a framework for planning, management accounting has an important role in management control. This topic introduces the concept of management control and considers the role of management accounting within such a control framework. The design of management accounting systems are also considered.

Topic 2 : Production and Quality Management in Modern Firms

This topic introduces the traditional production management techniques and strategies. The 5-P’s of production are specifically considered; i.e. the product, plant, process, program, and people. The three traditional types of production; i.e. Job; Batch; and Flow production are also studied, and concepts such as quality and reliability are also introduced. Modern production management techniques originating from Japan, such as Flexible Manufacturing Systems (FMS); and Total Quality Management (TQM) are also considered.

Topic 3 : Cost Accounting and Cost Management in a JIT Environment

This topic continues to look at production management techniques and strategies, especially the more modern production philosophies originating from Japan, such as Just-In-Time production (JIT). The strategic management accounting issues raised by such philosophies and techniques and aspects of the influence of the philosophy on production and purchasing are also covered.

Topic 4 : Management Accounting in Modern Firms

This topic overviews the complexity that exists in modern industrial settings, and why the conventional management accounting techniques may provide misleading information in such environments. It is shown that indirect costs make up the largest percentage of total costs in such complex firms, and that there are many challenges in allocating such indirect costs. Methods of identifying ‘obsolete’ cost systems and of improving cost control are also discussed.

Topic 5 : Benchmarking

This topic discusses in depth “benchmarking”; which is the formal process of measuring and comparing a company’s operations, products, and services against those of top performers, both within and outside that company’s primary industry.

Topic 6 : Activity Based Costing (ABC)

This topic focuses on the principles of Activity Based Costing (ABC), which is shown as the response to the challenge of complexity. Aspects such as “volume”, “structural” and “introductory” costs are specifically considered.

Topic 7 : Customer Profitability Analysis

This topic moves the focus from analysis to action. Methods of finding profitable customers and products are considered, as is the area of account management.

Topic 8 : Process Control and Activity Based Management

Here the areas of process control and activity based management are discussed. Monitoring systems, and the concepts of frequency, timeliness and accuracy are considered, especially in relation to white-collar departments.

Topic 9 : Implementing Cost Analysis and Control Systems

This outlines the implementation process of activity based costing. Behavioural aspects, especially in creating motivation are discussed. Long-term cost management models are also considered.

Topic 10 : Re-engineering Management Control Systems

Strategic approaches such as “product differentiation” and “cost leadership” are considered in re-engineering management control systems especially via the linking of overall performance to financial and non-financial measures.

Topic 11 : Triple Bottom Line Accounting

Triple bottom line accounting is changing the way organisations go about their business. This topic explores what is meant by the "triple bottom line" and what it means for organisations, now and in the future.

Topic 12 : Corporate Governance: The Role of the Management Accountant

This topic overviews the area of Corporate Governance, which is viewed as a system by which business corporations are directed and controlled. The corporate governance structure specifies the distribution of rights and responsibilities among different participants in the corporation, such as, the board, managers, shareholders and other stakeholders, and spells out the rules and procedures for making decisions on corporate affairs. There is a inextricable link between corporate governance structure and the strategic planning and management processes within an organisation. In particular, a good corporate governance structure is seen to assist the development and management of an organisation’s strategic directions and goals through the existence of a clear and well-communicated set of duties and responsibilities between the different stakeholder and monitoring parties.

Subject 2 : Advanced Strategic Management Accounting

Objectives :

On successful completion of this subject, a student should be able to identify the basic conventions and doctrines of managerial and cost accounting and other generally accepted principles which may be strategically applied across the various functions of a business organisation; discuss a number of cost and management accounting issues relating to the design and implementation of strategic, marketing, value analysis and other management models in modern firms; and identify major contemporary issues that have emerged in business accounting. This subject provides an advanced study of the interface between modern managerial accounting and the business functions of strategic planning, marketing, manufacturing and human resource management. The accountant’s role in the marketing decision areas are specifically considered.

Synopsis :

• identify the basic conventions and doctrines of managerial and cost accounting and other generally accepted principles which may be strategically applied across the various functions of a business organisation.

• identify major contemporary issues that have emerged in strategic management accounting.

• discuss a number of cost and management accounting issues relating to the design and implementation of strategic, marketing, strategic value and other management models in modern firms.

• to appreciate the management accountant’s role in the implementation of cost management systems for marketing decision making.

Topics Covered :

Topic 1 : Corporate Strategy in Modern Firms

This topic overviews the concepts and development of strategic planning in modern business enterprises. The traditional areas of corporate strategy; such as mission statements, objectives, and strategic planning decision models are first introduced to the student. The state of strategic thinking in the current environment is then considered, especially in relation to strategic management information systems.

Topic 2 : Marketing and Strategic Management Accounting

Here the marketing concept is introduced and the links between marketing and strategic management accounting are illustrated. It is shown how concepts such as the product life cycle and product portfolio matrix are linked to managerial accounting techniques such as budgeting and life-cycle costing to provide relevant information for strategic decision making.

Topic 3 : Accounting for Marketing Product Management

This topic looks at the interface between management accounting and marketing related “product management” especially in competitive environments. The “product” is the first “P” in the 4-Ps of marketing, the others being price, promotion and place distribution, which will be discussed in detail in later topics. It is shown that as a product moves through various stages of its life-cycle, there are differing financial aspects that need to be focused on for competitive positioning. It is demonstrated that the company’s management accountant possesses the tools and techniques required to provide the product managers with decision-orientated information.

Topic 4 : The Management Accountant’s Role in the Pricing Decision

Here the various aspects of pricing decisions are covered, especially in competitive environments. Pricing Methods and Pricing Strategies are specifically contrasted, and the use of such techniques as CVP analysis and linear programming in the pricing area are discussed. Risk averse pricing strategies and their limitations are also covered in this topic.

Topic 5 : Financial Dimensions of Pricing in International Markets

This topic extends the discussion of the previous section on pricing, and considers within a competitive international market. It is shown that setting a selling price in a foreign market has, in addition to strategic marketing considerations, some unique international financial dimensions, especially due to the lengthening of the channels of distribution and the impact of multiple currencies.

Topic 6 : Accounting for Promotion: Push Strategy

Here the principal ways of communicating with the market, referred to collectively as the “promotional mix” are overviewed. The objective of this mix is to make a sale, either by “pulling” customers towards the product (using advertising) or by “pushing” the product to the customer (using personal selling). It is shown that the management accountant has a significant role “push strategy”, especially in controlling field sales operations, and evaluating sales force performance.

Topic 7 : Accounting for Promotion: Pull Strategy

This topic continues with the discussion on promotion, and specifically looks at “pull strategy” with its heavy reliance on advertising. It is demonstrated that the management accountant has a significant role in formulating advertising budgets, especially using specific budget models, and in the difficult areas of controlling advertising outlays and evaluating advertising effectiveness.

Topic 8 : The Management Accountant’s Role in the Place - Distribution Decision

This topic considers the last “P” of the 4-P’s of marketing; ie. place (or physical distribution). It is shown that the control of the distribution function involves a “trade-off” between maximising customer service and minimising distribution costs, and that the management accountant has a significant role to play in achieving this balance. The various accounting techniques useful in distribution cost analysis and control are highlighted in this topic.

Topic 9 : Performance and Strategic Financial Structures

Here the impact of financial structure on planning performance evaluation is considered, specifically capital structure and its role is obtaining an appropriate discount rate for capital projects.

Topic 10 : Strategic Value Analysis

The use of “value-drivers” is considered in the linking of corporate strategy with financial performance measures. Aspects such as “free-cash flow”; “continuing value” and “business value” are specifically considered.

Topic 11 : Corporate Radar and Early Warning Systems

Short-term (weekly) and long-term (annual) corporate radar systems are considered, in order to determine the health of one’s business organisation. Bankruptcy prediction models (such as Z-scores) are specifically considered.

Topic 12 : The Balanced Scorecard

A “balanced” view of the corporate scorecard is considered, incorporating strategic and tactical; internal and external; financial and non-financial; and past and future oriented key-performance indicators.