View Unit : The Use of Cost Control and Cost Management in Operational and Strategic Decision Making

Unit

Unit Reference Number

J/503/7005

Qualification Framework

QCF

Title

The Use of Cost Control and Cost Management in Operational and Strategic Decision Making

Unit Level

Level 6

Unit Sub Level

None

Guided Learning Hours

Unit Credit Value

Date of Withdrawal

SSAs

15.1 Accounting and Finance

Unit Grading Structure

Pass

Assessment Guidance

Upon completion of this unit the learner will be able to understand the economic and commercial environment to enable them to make effective use of management accounting information within their own organisation or inform their business practice. They will gain an advanced understanding of financial control and decision support aspects of management accounting and be able to diagnose complex business problems in the context of appropriate accounting information and systems.

Professional Standards:

Current International Standards on Auditing

International Standards on Quality Control

International Financial Reporting Standards

International Accounting Standards

IFAC Code of Ethics issued by the International Ethics Standards Board for Accountants (IESBA)

It is recommended that this unit is assessed by a 3 hour written examination paper.

View Unit's Qualifications

Learning Outcomes and Assessment Criteria

Learning Outcome - The learner will:		Assessment Criterion - The learner can:
1	Understand cost behaviour and management.	1.1	Apply cost management principles to business situations.
		1.2	Compare and contrast the usefulness of cost behaviour techniques including regression analysis, advanced variance analysis and the learning curve model.
		1.3	Discuss the behavioural or soft issues that impinge on the development and application of management accounting systems.
2	Understand the role of cost behaviour and management in the decision making process.	2.1	Apply cost and pricing calculations and methods (traditional, throughput or ABC) as a basis for decision making.
		2.2	Compare and contrast the use of costing methods in different contexts and for different purposes including conditions of scarce resources and uncertainty.
		2.3	Discuss the theory of constraints and the inter-relationship of accounting methods and modern manufacturing techniques within the context of management accounting.
		2.4	Compare and contrast strategic decision making models that support the management accounting function.
3	Understand the role of management accounting in a large organisation.	3.1	Discuss the advantages and disadvantages of decentralisation and divisionalisation within an organisation.
		3.2	Analyse and differentiate a range of management control systems.
		3.3	Compare and contrast a range of performance measurement models and the possible consequences of such systems.
		3.4	Compare and contrast the advantages and disadvantages of adopting a range of alternative transfer pricing approaches in differing contexts.
		3.5	Apply contingency and agency theory to the development and use of management accounting systems.
4	Apply accounting for value creation techniques.	4.1	Compare and contrast a range of advanced manufacturing technologies including material requirements planning, manufacturing resource programming and Just in Time techniques and their consequences for management accounting systems.
		4.2	Discuss the advantages and disadvantages of the value added concept against the traditional return on investment and residual income measures.
		4.3	Discuss strategic management accounting concepts and themes that support the planning process including: value chain analysis, stakeholders analysis, cost of quality, business process re engineering and environmental management accounting.

Equivalent Units

There are no equivalences to display.