Paper 7 Planning - Control and Performance Management
Aims
To develop knowledge and understanding of the application of management accounting techniques to support the management processes of planning, decision-making, control and performance measurement.
Objectives
On completion of this paper, candidates should be able to:
- identify valid, relevant data from internal and external sources
- present cost information using appropriate methods
- prepare forecasts of income and expenditure
- monitor and analyse actual costs against forecasts and trends
- compare actual costs with standard costs and analyse and explain any variances
- prepare draft budget proposals
- prepare and present reports comparing actual performance with planned performance for the organisation or for responsibility centres and analyse any variances for management control purposes
- prepare and monitor relevant performance indicators, interpret the results and recommend how to reduce costs and enhance value
- make short-term decisions to enhance business performance.