CMA Intermediate Paper 10 | Cost and Management Accounting and Financial Management

About Cost Management & Accounting & Financial Management

Cost & Management Accounting is a branch of accounting that aims to overcome the limitations of Financial Accounting. The idea is to manage revenues and expenses to maximise profitability.Financial Management is nothing but applying general management principles such as planning, organising etc. to financial resources so that the organisational goals and objectives are met.

Cost & Management Accounting is one of the core competency areas of a CMA.As a CMA, you need to identify ways to maximise revenue and ensure that the company runs smoothly in terms of operations.You will help business keep their costs at a minimum and to leverage their resources properly.Financial Management is important because it helps you to make decisions that will maximise the value of the business.

The topics covered in Cost & Management Accounting and Financial Management at the CMA Intermediate level Under Cost & Management Accounting, you will:

Get an introduction to cost and management accounting
Understand the necessary decision-making tools
Understand budgeting and budgetary control
Understand the concepts of standard costing and variance analysis
Know what a learning curve is Under Financial Management, you
Get an introduction to Financial Management and its objectives
Gain knowledge of the tools used for Financial Analysis and Planning
Understand the concept of Working Capital Management, Cost of Capital, Capital Structure Theories, Dividend Decisions and Leverage Analysis
The concepts behind Capital Budgeting and Investment Decisions

The best approach to studying cost & management accounting and financial management

Concentrate on understanding the theoretical concepts
Practice a lot of problems in the domain
Refer to previous years’ examination papers to get an idea of the questions
Understand the formulae and concepts involved rather than mugging them up
While studying from online video lectures take an active role rather than a passive one. Take short notes while watching videos to retain concepts in your memory