FMA - Management Accounting

Master the principles of management accounting and develop skills to support business decision-making and performance management.

Applied Knowledge Level Core Paper Global Pass Rate: 58%
Management Accounting

About FMA

FMA - Management Accounting introduces you to the fundamental techniques of management accounting and their application in business decision-making.

This course develops knowledge and understanding of management accounting techniques to support management in planning, controlling, and monitoring performance in a variety of business contexts. You'll learn how to prepare basic financial statements and apply management accounting techniques.

Why FMA is Important

FMA is essential for anyone pursuing a career in accounting or finance. It provides the fundamental knowledge needed to:

  • Understand the role of management accounting in business
  • Apply costing techniques for decision-making
  • Prepare budgets and exercise budgetary control
  • Analyze and interpret financial information
  • Progress to higher-level management accounting exams

Exam Details

Duration: 2 hours
Pass Mark: 50%
Availability: March, June, September, December
Format: Computer-based exam
Questions: 50 marks (35 objective test questions + 2 multi-task questions)

Prerequisites

No formal prerequisites, but basic understanding of business mathematics is recommended.

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FMA Syllabus Areas

Nature and Purpose of Management Accounting

  • Accounting for management vs financial accounting
  • Cost classification and behavior
  • Source and purpose of management information
  • Cost accounting techniques
  • Management accounting in different business contexts

Cost Accounting Techniques

  • Absorption and marginal costing
  • Job and batch costing
  • Process costing
  • Service and operation costing
  • Alternative costing principles

Budgeting and Budgetary Control

  • Nature and purpose of budgeting
  • Budget preparation process
  • Flexible budgets
  • Capital expenditure budgeting
  • Budgetary control and reporting

Standard Costing and Variance Analysis

  • Standard costing systems
  • Material, labor, and overhead variances
  • Sales variances
  • Interpretation of variances
  • Reconciliation of budgeted and actual profit

Performance Measurement

  • Performance measurement overview
  • Performance analysis in private sector
  • Divisional performance and transfer pricing
  • Performance analysis in not-for-profit organizations
  • External considerations and behavioral aspects

Decision-Making Techniques

  • Relevant cost analysis
  • Cost-volume-profit analysis
  • Limiting factors
  • Pricing decisions
  • Make-or-buy and other short-term decisions

Exam Structure

Section A

35 Objective Test Questions

70% of the exam

  • Multiple choice questions
  • Multiple response questions
  • Number entry questions
  • Drag and drop questions

Section B

2 Multi-Task Questions

30% of the exam

  • Scenario-based questions
  • Each worth 15 marks
  • Test application of knowledge
  • Require multi-step calculations

Professional Skills Developed

Cost Analysis

Ability to analyze and classify costs for decision-making purposes

Budgeting Skills

Skills to prepare, monitor, and control budgets effectively

Variance Analysis

Ability to calculate and interpret variances for performance evaluation

Performance Measurement

Skills to measure and evaluate organizational performance

Decision Support

Ability to provide financial information to support management decisions

Financial Analysis

Skills to analyze and interpret financial information for business insights

Career Opportunities with FMA

Management Accountant

Prepare management accounts and support strategic decision-making

Cost Accountant

Analyze costs and prepare cost reports for management

Financial Analyst

Analyze financial data and provide business insights

Study Resources

Study Text

Comprehensive coverage of the FMA syllabus with examples

Exam Kit

Practice questions and past exam papers with solutions

Video Lectures

Expert-led video tutorials covering all syllabus areas

Start Your FMA Journey Today

Master management accounting principles with our comprehensive FMA course

Contact via WhatsApp Register Now