Course Objectives & Requirements:

Management Accounting Fundamentals [MA1] is the first of two mandatory courses in the management accounting stream in the CGA program of professional studies. The course presents an introduction to the main concepts and practices of management accounting.

Course Contents and Main Areas of Difficulty of the Course:

The purpose of management accounting is to provide managers of all types of organizations with the information they need to conduct the affairs of those organizations. Management accounting is a major information source for short-term and long-term operational planning, as well as for financial accounting.

Students are also expected to have a sound understanding of basic mathematics and its application in the business context; the expected level of knowledge is that which can be gained from any standard business mathematics text. If you need to upgrade or refresh your skills in basic mathematics, you are strongly recommended to consult an up to date Business Mathematics textbook.

An understanding of the principles of ethics and how ethical issues are addressed in the profession of accounting is an essential part of the CGA program of professional studies. The IFAC Code of Ethics for Professional Accountants is a required document for this course. In Management Accounting Fundamentals it will be assumed that you have become familiar with the IFAC Code. It clarifies important concepts and terms used throughout this and other courses.

Among all the lessons, the ABC lesson studies the merits and application of activity-based costing and service department costing. The activity-based costing system is covered in depth, beginning with the initial design of the system, followed by an illustration of its application. The allocation of overhead costs incurred by service departments is also explained.

Credits: 3