ICMA INTERNATIONAL

PART - A WEIGHTAGE 15%

Forecasting and Budgeting Techniques
1 Forecasts
• Forecasting using historical data
• Linear regression analysis
• Scatter diagrams and correlation
• Sales forecasting
• Regression and forecasting
• Components of time series
• Finding the trend
• Finding the seasonal variations
• Time series analysis and forecasting
• Using spreadsheet packages to build business models
2 Budgeting
• Why do organizations prepare budgets
• Framework for budgeting
• Steps in Budget preparation
• Functional budgets
• Budgetary Planning and Control system
• Sales Budgets
• Production Budget and related budgets
• Cash Budgets
• Master Budgets
• Capital Expenditure Budgets
• Monitoring procedures
• Fix and flexible budgets
• Preparing flexible budgets

PART - B WEIGHTAGE 15%

Standard Costing and Variance Analysis
3 Standard Costing
• Uses of Standard costing
• Setting standard for manufacturing
• Setting standard in service industries
• Updating standards
• Budgets and standard compared
• Criticism of standard costing
4 Variance Analysis, Interpretation and Profit Reconciliation
• Variances
• Direct material cost variances
• Direct labour cost variances
• Variable overhead variances
• Fixed overhead variances
• Sales variances
• Operating statements
• Variances in a standard marginal costing
• Working backwards approach to variance analysis
• Material mix and yield variances
• Labour mix and yield variances
• Sales mix and quantity variances
• Investigate variance or not to investigate variance
• Variance investigation model
• Controllability principle in Joint Variances
• Interpreting variances
• Profit reconciliation

PART - C WEIGHTAGE 20%

Project Appraisal Methods
5 Capital Investment decisions
• Process of investment decision making
• Post Audit
• Payback Method
6 DCF techniques of investment appraisal
• The net present value method
• The internal rate of return method
• NPV and IRR compared
• Discounted payback
7 Taking account of taxation and inflation
• Allowing for inflation
8 Additional aspects of investment decision making
• Mutually exclusive projects with unequal lives
• Asset replacement
• Project abandonment
• Capital rationing
• Sensitivity analysis
• Probability analysis and long-term decisions

PART - D WEIGHTAGE 15%

Cost Analysis
9 Break Even Analysis
• Breakeven Analysis and Contribution
• Breakeven Point
• Contribution/Sales (C/S) Ratio
• Margin of Safety
• Breakeven arithmetic and profit targets
• Breakeven charts and profit/volume graphs
• Limitation of Breakeven analysis
10 Limiting factor Analysis
• Limiting factors
• Limiting factor analysis and restricted freedom of action
• Make or buy decisions and scarce resources
• Limiting factors and shadow prices
• Using limiting factors analysis

PART - E WEIGHTAGE 20%

Modern Costing Techniques
11 Marginal Cost Analysis
• Pricing decisions
12 Activity Based Costing
• Reasons for the development of ABC
• Outline of an ABC system
• Absorption costing versus ABC
• Marginal costing versus ABC
• Introducing an ABC system
13 Throughput and Back flush Accounting
• The theory of constraints (TOC)
• Throughput accounting
14 Environmental costing
• The importance of environmental costs
• Environmental footprints
• Types of cost
• Environmental cost accounting

PART - F WEIGHTAGE 15%

Managing Short-Term Finance
15 Working Capital Management
• Working capital
• Working capital ratios
16 Cash flow forecasts
• Cash flows and profit
• Purpose of cash forecasts
• Cash budgets in receipts and payments format
• Cleared funds cash forecasts
• Cash forecasts based on financial statements
• Need for cash management
17 Cash Management
• Budgeting for borrowings
• Overdrafts
• Loans
• Trade payables as a source of finance
• Export finance
• Cash surpluses
• Cash investments: bank and building society accounts
• Marketable securities: prices and interest rates
• Other types of investment
18 Receivables & Payables Management
• What is credit control?
• Total credit
• The credit cycle
• Payments terms and settlement discounts
• Maintaining information on receivables
• Collecting debts
• Credit insurance, factoring and invoice discounting
• Managing payables
19 Inventory Management
• Managing inventories

Education