Performance Management

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The module helps students to identify the principal internal and external sources of management accounting information and the types of information systems used for strategic planning, management control and operational control and decision-making. It explains techniques such as, Activity-based costing, target costing and life-cycle costing. It investigates decision-making techniques such as, short-run decisions, limiting factors and pricing. The syllabus explores different budgeting techniques and the problems inherent in them. The preparation of fixed, flexible and incremental budgets is revisited. It explores standard costing and the use of planning and operational variances for performance analysis. Finally, the module explains divisional performance and transfer pricing.


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