Part_2_LOS_Mgt_Accounting_and_Reporting

Part_2_LOS_Mgt_Accounting_and_Reporting - CMA Learning...

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CMA Learning Outcome Statements Page 1 © 2008 Institute of Certified Management Accountants CMA PROGRAM Learning Outcome Statements (effective 7/1/04; updated 11/07) Part 2 Management Accounting and Reporting
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CMA Learning Outcome Statements Page 2 © 2008 Institute of Certified Management Accountants Section A. Budget Preparation (Levels A, B and C) Part 2 – Section A.1. Budgeting concepts The candidate should be able to: a. demonstrate an understanding of the role that budgeting plays in the overall planning and performance evaluation process of an organization b. demonstrate an understanding of the interrelationships between economic conditions, industry situation, and a firm’s plans and budgets c. identify the role that budgeting plays in formulating short-term objectives and planning and controlling operations to meet those objectives d. identify the characteristics that define successful budgeting processes e. demonstrate an understanding of the role that budgets play in measuring performance against established goals f. explain how the budgeting process facilitates communication among organizational units and enhances coordination of organizational activities g. describe the concept of a controllable cost as it relates to both budgeting and performance evaluation h. prepare an operational budget i. prepare a capital expenditure budget j. demonstrate an understanding of the concept of management-by-objective and how it relates to performance evaluation k. identify the benefits and limitations of management-by-objective l. demonstrate an understanding of how the planning process coordinates the efficient allocation of organizational resources m. identify the appropriate time frame for various types of budgets n. identify who should participate in the budgeting process for optimum success o. describe the role of top management in successful budgeting p. identify the role of top management or the budget committee in providing appropriate guidelines for the budget and identify items that should be included in these guidelines q. demonstrate an understanding of the use of cost standards in budgeting r. differentiate between ideal (theoretical) standards and currently attainable (practical) standards s. differentiate between authoritative standards and participative standards t. identify the steps to be taken in developing standards for both direct material and direct labor u. define the role of benchmarking in standard setting v. demonstrate an understanding of the techniques that are used to develop standards such as activity analysis and the use of historical data w. discuss the importance of a policy that allows budget revisions that accommodate the impact of significant changes in budget assumptions x. demonstrate an understanding of the role of budgets in monitoring and controlling expenditures to meet strategic objectives
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CMA Learning Outcome Statements Page 3 © 2008 Institute of Certified Management Accountants Part 2 – Section A.2. Budget systems
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Part_2_LOS_Mgt_Accounting_and_Reporting - CMA Learning...

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