Cma Management Tools Know Performance Measurement Concepts
Comprehensive coverage of IMA part #1 exam Section C -Performance Management-Flexible Budget &Responsibility Accounting
Last updated 2022-01-10 | 4.3
- Know how to produce a flexible budget to develop a management report- How to prepare a performance analysis by comparing actual results to the master budget
-
- Be able to identify and explain the different types of responsibility centers
What you'll learn
* Requirements
* Financial Accounting* Budget Planning
* Would help if completed - CMA Management Tools - Budget Concepts & Methodologies
Description
Performance Management (20% of the exam questions- Levels A, B, and C type questions)
This course is a very comprehensive review of the many Performance Management Issues that are tested by the Institute of Management Accountants on their Certified Management Accounting exams. The course covers the subtopics
1. Cost and variance measures a. Comparison of actual to planned results b. Use of flexible budgets to analyze performance c. Mana
2. Responsibility centers and reporting segments a. Types of responsibility centers b. Transfer pricing models c. Reporting of organizational segments
3. Performance measures a. Product profitability analysis b. Business unit profitability analysis c. Customer profitability analysis d. Return on investment e. Residual income f. Investment base issues g. Key performance indicators (KPIs) h. Balanced scorecard
Each section contains an overview lecture. Each Learning Outcome that could be on the test is covered in detail with study notes provided and quizzes that contain past CMA exam questions on that section.
To be successful writing the CMA, you must practice, practice and practice. This course requires that of you.
Variance analysis is the study of deviations of actual behaviour versus forecasted or planned behaviour in budgeting or management accounting. This is essentially concerned with how the difference of actual and planned behaviours indicates how business performance is being impacted.
Responsibility accounting is an underlying concept of accounting performance measurement systems. The basic idea is that large diversified organizations are difficult, if not impossible to manage as a single segment, thus they must be decentralized or separated into manageable parts. These parts, or segments are referred to as responsibility centers that include:
1. revenue centers,
2. cost centers,
3. profit centers, and
4. investment centers.
This approach allows responsibility to be assigned to the segment managers that have the greatest amount of influence over the key elements to be managed. These elements include revenue for a revenue center (a segment that mainly generates revenue with relatively little costs), costs for a cost center (a segment that generates costs, but no revenue), a measure of profitability for a profit center (a segment that generates both revenue and costs) and return on investment (ROI) for an investment center (a segment such as a division of a company where the manager controls the acquisition and utilization of assets, as well as revenue and costs).
Who this course is for:
- CMA Candidates
- Business managers
- Business students
- Wannabe Managers
Course content
10 sections • 27 lectures
Professional Exams Preview 05:16
The three level of questions Preview 01:36
Cost & variances Preview 01:07
Using of flexible budgets to analyze performance Preview 15:29
Developing flexible budgets is a very effective means of measuring performance.
Do the excel problems in the resources.
Understand Responsibility Accounting Preview 18:21
Responsibility Accounting segregates a business organization into Cost centers; Profit Centers and Investment centers for performance evaluation of managers
Responsibility Concepts
Note on Responsibility Accounting Preview 01:34
Flexible budget demo Preview 04:41
Flexible Budget Problem Demo Preview 01:08
Flexible Budget Concepts
The flexible budget and variance analysis concepts.
Problems on Flexible budgeting
Understand how the accountant prepares a Flexible Budget report for the evaluation of a manager's performance. This report is for cost centers, profit centers and investment centers.
Quiz on Responsibility Centers
Quiz questions
Problems on Responsibility Accounting
Responsibility accounting is an underlying concept of accounting performance measurement systems. The basic idea is that large diversified organizations are difficult, if not impossible to manage as a single segment, thus they must be decentralized or separated into manageable parts.
Flexible Budget Terms
Match These phraes
Lecture on Standard Costs Preview 15:20
Variance analysis of standard inputs of direct material and direct labor
Downloadable notes on standard costs Preview 00:01
Demo an Standard Cost Variance analysis Preview 01:57
Demonstration Problem on Direct Material & Direst Labor Preview 04:24
Standard Costs Concepts Fill Blanks
Fill in the blanks
Standard Cost Concepts
This quiz test your understanding of Standard Cost Concepts
Problems on Standard Costing
Deepen your understanding of Standard Costing
Standard costs Matching
Match these phrases
Understanding the Balanced Scorecard Preview 04:58
The new Performance tool - The Balanced Scorecard
A new concept in performance evaluation
Past MC CMA exam questions on Performance Measurement Concepts
Practice these exam questions
Problems on Flexible Budget Variance analysis
Work on these problems
Problems on Responsibility Accounting
Problems