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CIMA BA2
Fundamentals of Management
Accounting
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Fundamentals of Management Accounting

This subject deals with the fundamental knowledge and techniques that
underpin management accounting. It identifies the position of the management
accountant within organisations and the role of CIMA. The subject portrays the
role of management accounting in the contexts of commercial and public sector
bodies and its wider role in society.

The identification and classification of costs and their behaviour provides the
basis for understanding and applying the tools and techniques needed to plan,
control and make decisions. Budgetary control requires the setting of targets
and standards which then allow the performance of organisations to be
reported and analysed by the calculation of variances. Investment appraisal,
break-even analysis and profit maximisation are used to inform both long and
short term decision making.
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