NCI Courses

The role of budgets as part of strategic planning. Budgets as an integral part of a Business Plan for organisations of various sizes and at different stages of development. The interrelationships between the various functional budgets and the economic environment. Sources of information for preparing and updating budgets. Examining the qualitative aspects of the budgeting process including human subjectivity and the need for assumptions. Sensitivity analysis based on the applicability / non-applicability of various assumptions. Using flexed budgets and variance analysis for identifying and diagnosing problems. Performance analysis and behavioural aspects.

Advanced variance analysis including mix and yield variances. Reconciling budgeted and actual performance using absorption and variable cost approaches. In-depth analysis of divergences from plans and the generation of possible solutions to deal with problems in various organisational settings. Divisional performance measurement including consideration of divisions within different organisations such as public sector and not-for-profit, and issues such as transfer pricing and taxation.

Consideration of the distinction between risk and uncertainty. Applying various methods to estimate the amount of risk and to incorporate uncertainty in the decision making process including the use of probabilities / expected values, decision trees, the learning curve, high-low methods, ‘maximin’ and ‘maximax’ techniques etc.

Understanding the context of decisions for organisations with varying objectives, and for firms of different sizes and operating in various sectors. Applying marginal costing techniques in decision making to include multi-product analysis and consideration of the degree of operating gearing etc. Application of relevant costing principles in decision making to include outsourcing, sub-contracting, continue to trade, pricing decisions etc. Use of various techniques including graphical approaches and linear programming to deal with scarce resources and limiting factors. The value of perfect information in reducing uncertainty.

Understanding the role of management accounting in the context of the links between: operations and strategy; the different functions within an organisation; various stakeholder groups and the organisation’s environment. The importance of the contribution of management accounting to the formulation of policies, plans, and performance monitoring as part of management decision making. Consideration of the various roles of management accounting in profit and not-for-profit organisations. Business ethical issues and management accounting.Emerging issues in Management Accounting; issues in Management Accounting research.