CMA Intermediate New Syllabus 2023: The Institute of Cost Accountants of India has revised new syllabus for CMA Intermediate Paper-12 Management Accounting (MA). The new ICMAI Syllabus-2022 shall be applicable from June 2023 term of examinations.
New Syllabus for MA
SECTION A: INTRODUCTION TO MANAGEMENT ACCOUNTING
- Introduction to Management Accounting
1.1. Conceptual Understanding
1.2. Relationship between Management Accounting and Cost Accounting
1.3. Role of a Management Accountant in Modern Business World
SECTION B: ACTIVITY BASED COSTING
- Activity Based Costing
2.1 Traditional Cost System
2.2 Definition and Meaning of Activity Based Costing (ABC)
2.3 Steps in ABC System
2.4 Cost Pools and Cost Drivers
2.5 Merits and Demerits of ABC System
2.6 Activity Based Information and Decision Making
SECTION C: DECISION MAKING TOOLS
- Marginal Costing
3.1 Concept
3.2 Cost-Volume-Profit Analysis
3.3 Break-Even Charts and Profit Charts
3.4 Multiple Product Break Even Analysis
3.5 Differential Cost Analysis
3.6 Marginal Costing Vs. Absorption Costing (advanced applications) - Applications of Marginal Costing in Short Term Decision Making
4.1 Pricing Decision
4.2 Make or Buy decisions
4.3 Accept an Order or Reject
4.4 Optimum Utilization of Factors of Production [Limiting Factor Analysis]
4.5 Replacement Decision
4.6 Evaluation of Alternative Choices
4.7 Subcontracting and Ancillarisation
4.8 Expansion of Business
4.9 Shutdown or Continue - Transfer Pricing
5.1 Concept
5.2 Methods and Techniques
5.3 Divisional Performance and Problem of Goal Congruence
5.4 Determination of Inter-departmental or Inter-company Transfer Price
5.5 International Transfer Pricing
SECTION D: STANDARD COSTING AND VARIANCE ANALYSIS
- Standard Costing and Variance analysis
6.1 Material and Labour Variances
6.2 Variable Overhead Variance
6.3 Fixed Overhead Variance
6.4 Sales Variance
6.5 Interpretation of Variances and Inferences Drawn
SECTION E: FORECASTING, BUDGETING AND BUDGETARY CONTROL
- Forecasting, Budgeting and Budgetary Control
7.1 Introduction
7.2 Rationale for Budgets
7.3 General principles in the Budgetary process
7.4 Formulation of various types of Budgets
7.4.1 Fixed and Flexible Budgets
7.4.2 Functional Budgets
7.4.3 Master Budget
7.4.4 Cash Budget
7.4.5 Zero Base Budget
7.4.6 Performance Budget
7.4.7 Programme Budget
7.4.8 Rolling Budget
7.4.9 Outcome Budget
7.4.10 Budgetary Control- Rationale for Budgetary Control
- Importance and Significance of Budgetary Control
- Linkage of Budgetary Control with Standard Costing and Profit Reconciliation
- Benchmarking and Key Success Factor
- Interpretation of Under and Over Performance and Inferences Drawn for Corrective Actions
SECTION F: DIVISIONAL PERFORMANCE MEASUREMENT
- Divisional Performance Measurement
8.1 Organisations with Multiple divisions, Benefits of Decentralization
8.2 DuPont Analysis
8.3 Divisional Performance Measurement tools – ROI, Residual Income
8.4 Economic Value Added – Definition, EVA Centre, EVA Drivers
8.5 Introduction to Learning Curve
8.6 Balanced Score Card for Variable Pay Management
SECTION G: RESPONSIBILITY ACCOUNTING
- Responsibility Accounting
9.1 Concept of Cost, Revenue, Profit and Responsibility Centres
9.2 Preparation of Responsibility Report
SECTION H: DECISION THEORY
- Decision Theory
10.1 Decision Making under Certainty
10.2 Decisions Making under Risk
10.3 Decision Making under Uncertainty
10.4 Decision Tree