MAS TOPICS evaluate, monitor and improve business
1. Management Accounting performance
A. Describe the objectives, role and scope of g) Identify and use appropriate relevant costs in
management accounting and differentiate it from making analysis and business decision for
financial accounting, roles and activities of controller short-term non routine scenarios. Understand
and treasurer, international certifications in and apply the concept of opportunity costs
management accounting and global trends in i. Determine the key elements of capital
management accounting budgeting investment decisions (net
B. Management accounting concepts and techniques investment, operating cash flow and cost
for planning and control of capital) and evaluate the same using
a) Identify and differentiate the different types both discounted and non-discounted
of costs (e.g., direct, indirect; fixed, variable; cash flow techniques.
inventoriable, period; opportunity cost, sunk ii. Application of approaches in analyzing
cost) and their characteristics and behavior; alternative non-routine decisions
utilize cost behavior segregation and cost (Alternatives involving make or buy,
behavior prediction techniques to determine accept or reject a special order, continue
their usefulness in cost planning and financial or shut-down, sell or process further,
and management reporting. product combinations and pricing
b) Analyze the relationship of costs, volume, and decisions).
sales to calculate break-even points and iii. Application of probability analysis,
target profit (CVP Analysis) under various decision tree diagram and linear
scenarios. Apply sensitivity analysis including programming.
determination of indifference point. Apply the
concepts of margin of safety and degree of 2. Financial Management
operating leverage. Analyze CVP relationships A. Identify and describe the nature, objectives, and
in multi-product companies scope of financial management in making business
c) Product costs and period costs decisions
i. Inventory costing B. Analyze and use financial data derived from
ii. Treatment of fixed factory overhead cost financial statements in evaluating the performance of
iii. Reconciliation of income under the management and make business decisions.
absorption and variable costing C. Apply different working capital (cash, receivables,
iv. Allocation of cost; activity levels, cost inventory, and other short-term resources)
pools and activity drivers management methods and techniques in making
v. Determine cost pool rates and overhead short-term business decisions
allocation D. Determine the key elements of capital budgeting
d) Application of various financial planning and investment decisions (net investment, operating cash
budgeting techniques flow and cost of capital) and evaluate the same using
i. Describe the budgeting process both discounted and non-discounted cash flow
ii. Prepare a master budget by analyzing techniques
the behavior of revenues and costs and E. Apply the concept of risk and leverage. Understand
use it to calculate and prepare different and analyze situations involving the types of risks,
types of supporting budgets (e.g., measures of risks and degree of operating, financial
production, inventory levels, operating and total leverage. Distinguish the different types and
expenses, cash budget) for planning and measurement of risks and apply their relationships
control purposes with the rate of returns. Identify and apply various risk
e) Apply the concept of standard costing and measurement models.
variance analysis in planning and control in F. Utilize various techniques in managing capital
terms of cost, sales, and gross profit structure and in dealing with long-term financing
variations. decisions. Identify and apply the basic concepts and
i. Apply appropriate techniques in budget tools of capital structure management sources of
variance analysis intermediate and long-term financing and cost of
ii. Apply appropriate techniques in standard capital
costing and variance analysis G. Understand the workings of the Philippine stock
iii. Apply appropriate techniques in exchange and other houses. Understand the various
determination of direct material types of financial markets (money market, capital
variances market and derivatives market). Apply valuation
iv. Apply appropriate techniques in techniques for various types of derivatives (forwards,
determination of direct labor variances futures and options)
v. Apply appropriate techniques in
determination of factory overhead 3. Economic Concepts Essential to Obtaining an
variances using two-way; three-way and Understanding of Entity’s Business and Industry
four-way methods A. Identify and describe the basic concepts of
f) Identify and differentiate the different types macroeconomics that are relevant in making business
of responsibility centers (i.e., profit center, decisions, and apply the concepts properly
cost center, investment center) and B. Identify and describe the basic concepts of
determine the proper accounting of microeconomics that are relevant in making business
transactions affecting each one. Determine decisions, and apply the concepts properly.
the proper use of transfer pricing in
measuring the performance of business
operations.
i. Identify and differentiate the four
perspectives of the balanced scorecard
and formulate performance indicators to
