Strategic Management Accounting

“ Learning Curve ”
• Ch # 9 : Page 305 ACCA F5
o High Low Analysis
o Learning Curve
o Limitations of the Learning Curve model
o Tabular Approach
o Algebraic Approach
o Experience Curve
o “Using learning Curve” from Learning Curve Analysis pdf – Page 5 & 6 only
• Ch # 3 : Page 144 CIMA P2
o Learning Curves
o Experience Curves

“ Life Cycle Costing “

• Ch # 2 : Page 73 ACCA F5 ( Also visit Page 193 E3 )
o Life Cycle costing
o Lifecycle Costing PPTX
o MAXIMIZE Life Cycle Return
o Customer Life Cycle Costing
o Exam Q’s – Refer Sir Zeeshan Mehmood Lectures
▪ Q No 3 SMA Winter 2018
▪ Q1 ACCA PM Dec 2011
▪ ACCA PM Dec 2008

• Ch # 3 : Page 156 CIMA P2

o Life Cycle
• Page 173 & 300 Old CIMA P2 BPP
o Life Cycle

“ Target Costing “
• Ch # 2 : Page 67 ACCA F5
o Target Costing
o Q1 [ICMAP – SMA – Fall 2016] (LC & TC Concept ) Talha Shahid
o Q2 [ACCA – F5 – December 2009] (LC & TC Concept ) Talha Shahid
o
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 • Ch # 2 : Page 120 CIMA P2
o CIMA P2 BPP AMA Ch # 2 Page 120 ( Target Costing )
o Difference between traditional costing and Target Costing (Page 122)
o Value Analysis ( Page 126 )
o Functional analysis ( Page 129 )
o Value Chain (SCM) ( Page 131 )

“ Activity Based Costing “

• Ch # 1 : Page 46 CIMA P2
o Traditional vs modern manufacturing philosophy (Page 50)
o Activity based costing (Page 51)
o Activity based Management
o Customer profitability analysis (CPA) (Page 66)
o Distribution channel profitability ( Page 70 )
o Distribution channel profitability - CIMA P2 Kaplan (Page 28) – Numerical e.g.
o Activity based profitability analysis - CIMA P2
o Direct Product Profitability (DPP) CIMA P2 Kaplan (Page 17)
o Pareto analysis CIMA P2 Kaplan (Page 24)
o TQM ( Page 73 )
o Costs of quality and cost of quality reports ( Page 79 )
o Continuous improvement ( Page 82 )
o Kaizen costing ( Page 84 )
o Just-in-time (JIT) ( Page 87 )
o Business process re-engineering (BPR) ( Page 105 )
o Page 480 CPA Exam Tested descriptive ( 5 Marks )

“ Pricing Decision “
• Ch # 4 : Page 170 CIMA P2
o PED & Factors Affecting degree of elasticity
o Factors influencing volume of Demand
▪ 1) Product life cycle 2) Quality 3)Marketing
o Other issues that influence pricing decisions (Page 178)
o Deriving the demand curve (Page 181)
o The profit-maximizing price/output level
o Full cost-plus pricing
o Marginal cost-plus (mark-up) pricing
o Pricing based on mark-up per unit of limiting factor
o Pricing strategies for new products
▪ Market Penetration pricing

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 ▪ Price Skimming
o Product Differentiation and Price Discrimination
o Q4 [ICMAP – SMA – Fall 2018] ( Pricing Concept ) Page 159 (SMA Past
Papers File )

“ Linear Programming “

• Ch # 4 : Page 133 ACCA F5

o Planning with One limiting Factor ( Key Factor Analysis )
o Several limiting factors – linear programming
▪ ( Graphical Approach - Two Variables )
o Limiting factor analysis – discussion aspects
o Assumptions
o Shadow Prices
o Finding the Optimal Solution with three constraints using the Graphical
Method – ( Kauserwise YouTube Channel )
o LPP using-SIMPLEX METHOD ( Kauserwise YouTube Channel )
• Simplex Method – CIMA Old P2 (Page 151)

“ Risk & Uncertainty “

• Ch # 7 : Page 237 ACCA F5

o Risk & Uncertainty – Difference b/w Risk & Uncertainty
o Pay-off tables ( Profit Table ) - Page 249 ACCA F5
o Maximax, maximin and minimax regret (Combine with CIMA P2-Page 419) ACCA
F5 Page 250
o Simulation Page 244
o Value of Perfect Information (Page 258) - First from BFD (Page 429)
o Decision tree – First study from ICAP BFD 2015 ( Must especially Oil Drill
Question as similar Q’s was tested in April 2023 Attempt ) ( Page 255 )

• Ch # 10 : Page 398 CIMA P2

o Chapter Name (MANAGEMENT CONTROL AND RISK)
o Sensitivity Analysis
o Probability analysis and expected values
o Advantages and Disadvantages of EV – ACCA F5 Page 248
o Data tables
o Using the standard deviation to measure risk
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 o Decision Tree – First Study from ICAP BFD 2015 (Page 424)
o Problem 40.1 & 40.3 ( 4 Marks MCQ in April 2023 ) – Ch # 40 Ravi Kishore (Page
709 & 712 ) ➔ Exam Tested
o Value of Perfect Information(VIP) – First from BFD (Page 429) Must See Q’s
o Risk Management ( TARA Framework )

• Ch # 8 : Page 201 - ICAP BFD 2015

o simulation
o Monte Carlo simulation
o Decision Tree (Page 197)
o Value of Perfect Information (Page 199)

“PERFORMANCE MEASUREMENT”
• Ch # 6 : Page 250 CIMA P2
o Ch Name : “PERFORMANCE MEASUREMENT”
o Financial performance indicators (FPIs) - ( Page 252 )
o Return on investment (ROI) – ( Page 260 )
o ROI & Decision Making – ( Also Study from E3 Page 620 )
o Residual income (RI) – ( Also Study from E3 Page 625 )
o Economic value added (EVA®) – ( Page 269 )
o Non-financial performance indicators (NFPIs) – ( Page 272 )
o Benchmarking – ( Page 278 )
o Not-for-profit organizations (NGOs) – ( Page 281 )
• Practice Q’s
o ACCA F5 Sept – Dec 2017 ( Sports Co. )
o ICMAP SMA Fall 2018 Q No. 5 ( Super Textile Mills ) – Page 159
o ICMAP SMA Summer 2018 Q No. 7 (b) ( Casual and Formal ) – Page 187
o ICMAP SMA Winter 2018 Q No. 7 ( IFS-VIP ) – Page 200
o

• Ch # 8 : CIMA P2 Kaplan(Notes)
o Economic value added (EVA®) - Page 20
o EVA ACCA Article 2011 ( First Read and then try Question and TYU )
o Interpretation of EVA ( First Read and then try Question and TYU )
o ICMAP SMA Fall 2017 Q No. 7 ( Khyber Motors ) – Page 133
o ICMAP SMA Summer 2019 Q No. 5 ( Al Farooq VIP ) – Page 212
o ICMAP SMA FALL 2019 Q No. 4 ( SC Ltd ) – Excel File
o ICMAP SMA Spring 2014 ( Delta Div. ) – Talha Shahid
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 o ICMAP SMA Extra May 2017 – Talha Shahid

“Transfer Pricing”
• Ch # 28 : Page 733 - ICAP BFD 2015 ( 1st Priority )
o TRANSFER PRICING: PURPOSE AND OBJECTIVES
o PROBLEMS WITH TRANSFER PRICING
o Transfer pricing in practice
• Ch # 10 : CIMA P2 Kaplan(Notes) ( 2nd priority )
o Transfer Pricing
o A competitive market for an intermediate product
o Selling division has Surplus capacity
o Selling division has No Surplus capacity
o International Transfer Pricing
• Ch # 7 : CIMA P2 BPP ( 3rd Priority )
o The basic principles of transfer pricing – (Page 292)
o The use of market price as a basis for transfer prices – (Page 295)
o Transfer pricing with an imperfect external market – (Page 298)
▪ Transfer prices based on full cost
▪ Transfer prices based on full cost plus
▪ Transfer prices based on variable cost or MC
▪ Divisional autonomy, divisional performance measurement and corporate profit
maximisation.
▪ Dual Pricing
▪ Two Part Tariff system
o Transfer pricing when there is no external market for the transferred item –
(Page 302)
o Transfer pricing and changing costs/prices – (Page 304)
o
• Practice
o ICMAP SMA Fall 2013 – Q No. 5 – Talha Shahid ( Page 1 )
o ICMAP SMA Spring 2019 – Q No. 4 – ( Qasim Ltd ) Lecture # 45
o ICMAP SMA Summer 2018 – Q No. 6 – Al Faysal Group ( Page 186 )
o ICMAP SMA Spring 2017 – Q No. 6 – BDI ( Page 147 )

“CVP Analysis”
• Ch # 3 : Page 101 ACCA F5

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 o Break-even analysis
o Single product break-even analysis
o Drawing a basic breakeven chart
o The contribution breakeven chart
o The profit–volume chart
o Multi-product break-even analysis – ( Page 113 )
o Establishing a target profit for multiple products
o Margin of safety calculations
o The multi-product profit-volume graph
o Limitations of break-even analysis
• Paper Practice
o Q2 – Spring 2017 [MA]
o Q2 – Nov 2018 [MA]
o ACCA F5 Revision Kit

“Budgeting”
• Ch # 5 : Page 212 CIMA P2
o Responsibility centers
o Fixed and flexible budgets – (Page 219)
o Preparing flexible budgets(Budget cost allowance) – (Page 220)
o Flexible budgets and budgetary control – (Page 222)
o Behavioral implications of budgeting – (Page 230)
o Budget participation – (Page 230)
o Beyond budgeting – (Page 237)
o Page 566 E3 ( negative effects of budget )
“Relevant Costing”
• Ch # 4 : Page 100 CIMA P2 old
o Relevant and Not Relevant Cost
o Opportunity Cost and Notional Cost
o Avoidable, differential, and incremental costs
o Minimum price quotations for special orders
o Limiting factor decision-making
o Further decision-making problems
• Ch # 6 : Page 201 ACCA F5
o Make or Buy Decision
o Shut Down Decision
o One-Off Contracts / Special Orders
o Further Processing Decision
• Practice

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 o Garrison Noreen 16th Edition ( Page 634 – Problem 12-23 )
o SMA Past Papers ( Q1 Page 169 – Spring 2018 )
o SMA Past Papers ( Q2 Page 158 – Fall 2018 )
o Garrison Noreen 16th Edition ( Page 632 – Problem 12-21 )
o CIMA – Nov 2013 ( Page 4 - Relevant Costs and Short-term Decision Making PQs
[Sir Zeeshan] )
o SMA Past Papers ( Q4 Page 198 – Winter 2018 )
o CIMA – May 2007 ( Page 6 - Relevant Costs and Short-term Decision Making
PQs [Sir Zeeshan] )
o

“ Other Topics ”
• Outsourcing ( Insourcing, Nearshoring, Offshoring )
o Ch # 6 : Page 225 – SMA ICMAP
• Gain Sharing Arrangements
o Ch # 6 : Page 227 – SMA ICMAP
• Periodic and Rolling budgets
o Ch # 8 : Page 280 – ACCA F5 ( Best )
o Ch # 8 : Page 298 – SMA ICMAP
o Ch # 8 : Page 225 – CAF 8
• Zero Based budgets
o Ch # 8 : Page 277 – ACCA F5
o Ch # 8 : Page 224 – CAF 8
“ Group Data ”
1 - SMA Mock Solved
2 - Excel File – Practice for SMA ( Game Changer as this include all of exam tested Questions )

Must Visit
• CIMA P2
o Practice Question Bank on Page 474
• Old CIMA P2
o Revision Question on Page 458
o Question’s at the end of Chapter

Zeeshan Sikandar ( Distinction Holder )