The Institute of Chartered Accountants of Bangladesh

MANAGEMENT
INFORMATION
Professional Stage Knowledge Level
Paper 4

Study Manual

www.icab.org.bd
Management Information
The Institute of Chartered Accountants of Bangladesh Professional Stage

These learning materials have been prepared by the Institute of Chartered Accountants in England and Wales

ISBN: 978-1-84152-636-2
First edition 2009

All rights reserved. No part of this publication may be reproduced or

transmitted in any form or by any means or stored in any retrieval system, or
transmitted in, any form or by any means, electronic, mechanical, photocopying,
recording or otherwise without prior permission of the publisher.

© The Institute of Chartered Accountants in England and Wales, March 2009

ICAB President Welcome

© The Institute of Chartered Accountants in England and Wales, March 2009 iii
iv © The Institute of Chartered Accountants in England and Wales, March 2009
Contents

Page
 Introduction vii
 Specification grid for Management Information viii
 The learning materials ix
 Study guide x
 Getting help xvii
 Syllabus and learning outcomes xviii
1 The fundamentals of costing 1
2 Calculating unit costs (Part 1) 25
3 Calculating unit costs (Part 2) 47
4 Marginal costing and absorption costing 79
5 Pricing calculations 103
6 Budgeting 127
7 Cash budgets and the cash cycle 161
8 Performance management 181
9 Standard costing and variance analysis 219
10 Breakeven analysis and limiting factor analysis 247
11 Investment appraisal techniques 277
 Sample paper questions 311
 Sample paper answers 327
 Appendix 345

© The Institute of Chartered Accountants in England and Wales, March 2009 v

vi © The Institute of Chartered Accountants in England and Wales, March 2009