Assessment Guide (Accreditation of Prior Learning)

The Accreditation of Prior Learning Scheme is designed to provide formal assessment of understanding of practical Accountancy and Financial Management skills. Standards of Competence. The assessment is based on Standards of Competence designed by the Academy. The Standards are expressed as separate Units and are grouped for each Grade of Membership. The Standards will provide …

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Fundamentals of the Law of Contract

Introduction: Contracts are usually legal binding agreements and form part of both business and personal commitments. Contracts all contain terms and conditions which gives the parties’ own rights under that contract. For example the employment contract contains terms as salary, notice to terminate and job title. Contracts also form part of consumer laws. For example, …

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Benchmarking and Balance Scorecard

Benchmarking The term benchmarking has become fashionable in management culture and is now widely used in board-rooms throughout the UK. Johnson and Scholes, in their book Exploring Corporate Strategy, state that benchmarking involves comparison of competences with best practice including comparison beyond the organisation’s own industry. This involves a search for best practice and the …

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Controlled Behaviour

Professor Philip Dunn explains the behavioural aspects of budgetary control. Finance Staff together with Budget users need an awareness of how behaviour patterns are often shaped by the budgeting process, and why behavioural aspects are more to the fore in budgetary control than any other technique in management accounting.

CIMA’s definition of a budget is “a plan expressed in money. It is prepared and approved prior to the budget period and may show income expenditure and the capital to be employed. It may be drawn showing incremental effects on former budgeted or actual figures or complied by zero-base budgeting.”

Activity Based Costing

Allocation of overhead is one of the problems that bedevils any form of costing. And the more sophisticated the business, the more difficult or arbitrary those allocations seem.
Businesses need to know the cost of their product so as to control those costs and get their pricing right. And adding up the raw material and cost of direct labour needed to manufacture a product may be relatively straightforward.