MANAGEMENT ADVISORY SERVICES 1

FINAL EXAMINATION
Table of Specifications

Topic/Content No. of Items THEORIES PROBLEMS

EASY AVERAGE DIFFICULT EASY AVERAGE DIFFICULT

The role, historical perspective and direction of management

accounting
 Objectives, Scope, Relationship with Financial Accounting
and Management Accounting
 Role and Activities of Management Accountant
 The Changing World and Expanding Role of the Management 5 2 3
Accountant
 Management Accounting Information System
Management Accounting and Ethical Conduct
 Ethical Behavior
 Code of Conduct for Management Accountants
Cost Terms and Concepts
 Nature and Classification of Costs
 Basics of Cost Behavior
5 1 1 3
 Cost Classifications on Financial Statements
 Flow of Costs in Manufacturing, Commercial or Trading and
Service Companies
Cost-Volume Profit Analysis
 Cost-Volume-Profit Relationship
 Basics of CVP Analysis, Significance and Uses, Assumptions
and Limitations,
 Changes in Cost Structure, CVP Analysis for a Multi-Product 15 2 1 2 2 3 5
Firm, Preparation of Break-even Graph)
 Concepts of margin of safety and degree of operating
leverage
Standard costing
 The uses and limitations of standard costing methods
 The determination of standards (setting direct materials
standards, labor standards and overhead standards)
 Identification and calculation of variances: sales variances
(including quantity and mix); cost variances (including mix 20 1 2 3 3 5 6
and yield); absorption and marginal approaches
 Identification of significant variances and their
interrelationship
 Trends, materiality and controllability of variances
 Uncertainty and variance analysis
Costing systems: marginal contrasted with absorption costing
 The concept of profit contribution
 The difference between marginal and absorption costing
 Underlying concepts of variable costing 15 5 4 1 5
 Advantages / disadvantages of using variable costing
 Marginal cost accounting: process cost accounting
transactions in a marginal costing system
Functional and Activity-Based Budgeting
 Budget as a tool for decision making
 Master budgets
 Flexible budgets and variance analysis
 Budgeting and Behavioral Influences
 Control Theory and Budgeting
10 2 3 3 2
 Uncertainty and Budgeting
 Types of Budgetary Systems: Fixed and Flexible Budgets,
Zero-based Budgets, and Incremental, Periodic and
Continuous Budgeting
 Developing and Implementing Budgeting Systems:
Functional and Subsidiary Budgets and Master Budgets

TOTAL 70

Prepared by:

JELLYREN V. GUTIERREZ, CPA

Instructor