Know how to be successful in writing the CMA Exam #1 MCQ's

Become a Certified Management Accountant by passing pass Part 1 of the IMA exam. Plenty of lectures, demo and problems.
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Instructed by Dr. John Mclellan Test Prep / Other
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  • Lectures 82
  • Contents Video: 4.5 hours
    Other: 2 hours
  • Skill Level All Levels
  • Languages English
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About This Course

Published 2/2015 English

Course Description

This course is designed to train you to successfully pass the IMA exams and achieve your Professional Certified Management Accounting Designation. This course will be continually upgraded with learning content and more past CMA exam questions for you to practice.

I will prepare you to pass the Part 1 Exam multiple choice questions offered to university graduates by the Institute of Management Accountants in America.

I earned my CMA 40 Years ago. I have taught CMA courses and consistently had an 85% to 90% pass rate. One year it was 94%. I have marked thousands of CMA final accreditation exams. I prepared this program years ago to mentor many candidates like yourself who are now CMAs.

Passing CMA exams will not be easy..

Obtaining your CMA designation - believe me - will pay you BIG dividends for the rest of your career. It did for me.

What are the requirements?

  • The two textbooks referenced in this course are texts you are already familiar with in your undergraduate courses or if not you can borrow from a business library.

What am I going to get from this course?

  • Get a passing mark on the multiple chose questions in part 1 of the CMA exam
  • Qualify for the essay questions of the Part 1 CMA exam
  • Become a Certified Management Accountant
  • Add a Professional Accounting Designation to your resume.

What is the target audience?

  • The Institute of Management Accountants (IMA) offers three times a year both Part 1 and Part 2 Certification exams in which if you successfully pass both you will be awarded a Certified Management Accountant designation (CMA). This course covers all the learning outcomes that will be tested by the IMA on the Part 1 Exam. There are over one thousand practice questions designed to prepare you to pass the exam. This course requires a great deal of effort to successfully complete it but I have 40 years experience and am in a position to help you through it.
  • If you have a business degree the material should be familiar to you.

What you get with this course?

Not for you? No problem.
30 day money back guarantee.

Forever yours.
Lifetime access.

Learn on the go.
Desktop, iOS and Android.

Get rewarded.
Certificate of completion.

Curriculum

Section 1: Introduction to Part1 of the Certified Management Accounting Exam
05:25

The material that will be covered and tested on the exams is rather extensive. For part 1, there are over 500 learning outcomes covering both financial accounting and management accounting concepts. However some concepts are more important than others and these are the ones that are consistently tested. We will cover all learning outcomes but will focus most of our efforts on the often tested concepts.

You will need to have access to a couple of textbooks:

Kieso, Donald E., Weygandt, Jerry J., and Warfield, Terry D., Intermediate Accounting, 15 th edition, Wiley & Sons, Hoboken, NJ, 2011. AND

Horngren, Charles T., Datar, Srikant, and Rajan, Madhav, Cost Accounting: A Managerial Emphasis, 14 th edition, Prentice-Hall, Upper Saddle River, NJ, 2012. OR

Blocher, Edward, J., Stout, David E., Juras, Paul E., and Cokins, Gary, Cost Management: A Strategic Emphasis, 6 th edition, McGraw Hill, New York, NY, 2013. AND

Bodnar, George, H., and Hopwood, William S., Accounting Information Systems, 10th edition, Prentice-Hall, Upper Saddle River, NJ, 2010.

You can borrow them from any business library. Don't worry if you are unable to get that specific edition- authors only change the chapter questions when they change editions - so get any edition.

In this course w e will go through each section, developing answers to each learning objective in that section. At the end of each section, there will be a "Test Your Understanding" (TYU) section containing multiple choice questions. There may be more than one TYU for each section as I will be continually uploading questions for you to practice.

To successfully pass this exam will require hours and hours of study and doing practice exam questions. A good plan is to take five months to cover the material thoroughly before attempting the exam.

The case section will be at the end of this course. I will give you a good outline to follow on how to analyze the case and present your analysis to achieve top marks. We do many practice cases.

Finally, I will provide you with practical advise on how to manage the exam.

05:15

Professional exams are different than university exams

Section 2: Planning, Budgeting and Forecasting ( 30% of the Exam). This sectio
01:26

This lecture is a short video on all topics in Section B. Planning, Budgeting and Forecasting. Print off the the IMA Learning Outcomes for Section B - Budgeting that I have restated as questions for you to research.

This section is most important - 30% of MC questions will be in this area. Also a case question will likely be on budgeting - so know the learning objectives in section B 5.


Section 3: Know Strategic Planning
02:31

Two basic strategies ;

1. Product differentiation

a. Offering products and services perceived by customers as being superior and

unique

b. Resulting in increase of brand loyalty and prices customers willing to pay

2. Cost leadership

a. Achieving low costs relative to competitors

b. Resulting in increase of market share and growth of company

02:39

Here are the answers to some of the learning outcomes of this section that could be tested by the IMA.

Print the PPT's on sheet - six to a sheet and use them as flash cards.

CMA Learning Outcomes to be tested on Strategic Planning
Article
Past Candidates answers to learning outcome questions - Strategic Planning
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Article
Flash Cards on Strategic Planning
Preview
Article
5 pages

To fully grasp the significance and vital role of management accounting, one needs to look to the whole of the organization. Accounting as an information and communication system provides the organization a means to implement a company-wide strategy and the tools by which to evaluate the success of that strategy.

12 pages

There are two principal types of planning activities that are part of the management control process

- strategic planning

- budgeting

02:32

This is a socrative quiz. Go to socrative.com and register as a student. When asked what room enter -  stratplan.

You receive immediate feedback but if you want a pdf of your work email me at - the.cma.coach@gmail.com

10 questions

Ten questions to expand your understanding of strategic planning.

Section 4: Know Budget Concepts
01:46

IMA learning Outcomes to be tested

Section B.2. Budgeting concepts

The candidate should be able to:

a. describe the role that budgeting plays in the overall planning and performance evaluation process of an organization

b. explain 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. demonstrate an understanding of the role that budgets play in measuring performance against established goals

e. identify the characteristics that define successful budgeting processes

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. explain how the efficient allocation of organizational resources are planned during the budgeting process

i. identify the appropriate time frame for various types of budgets

j. identify who should participate in the budgeting process for optimum success

k. describe the role of top management in successful budgeting

l. identify best practice guidelines for the budget process

m. demonstrate an understanding of the use of cost standards in budgeting

n. differentiate between ideal (theoretical) standards and currently attainable (practical) standards

o. differentiate between authoritative standards and participative standards

p. identify the steps to be taken in developing standards for both direct material and direct labor

q. demonstrate an understanding of the techniques that are used to develop standards such as activity analysis and the use of historical data

r. discuss the importance of a policy that allows budget revisions that accommodate the impact of significant changes in budget assumptions

s. explain the role of budgets in monitoring and controlling expenditures to meet strategic objectives

t. define budgetary slack and discuss its impact on goal congruence

01:47

Here are the answers to some of the learning outcomes of this section that could be tested by the IMA.

Print the PPT's on sheet - six to a sheet and use them as flash cards.

07:08

here are some questions on budgeting. Print off and try on your own.

2 pages

Here is a small multiple choice quiz for you to practice. Download a copy, print off and try it. Then check the answers

T. Your U. - Questions on Budgeting Concepts
16 questions
Section 5: Know Forecasting Techniques
01:33

Read the relevant chapter in your copy of Horngen. Chapter 10 - Determining how costs behave, go over the PPT;s and the notes .Answer the questions in this section.B3 - forecasting techniques. The IMA likes to test learning curves.

IMA Learning Outcomes to be tested

Part 1 – Section B.3. Forecasting techniques

The candidate should be able to:

a. demonstrate an understanding of a simple regression equation

b. define a multiple regression equation and recognize when multiple regression is an appropriate tool to use for forecasting

c. calculate the result of a simple regression equation

d. demonstrate an understanding of learning curve analysis

e. calculate the results under a cumulative average-time learning model

f. list the benefits and shortcomings of regression analysis and learning curve analysis

g. calculate the expected value of random variables

h. identify the benefits and shortcomings of expected value techniques

i. use probability values to estimate future cash flows

3 pages

The two assumptions are

1. Variations in the level of a single activity (the cost driver) explain the variations in the related total costs.

2. Cost behavior is approximated by a linear cost function within the relevant range. A linear cost function is a cost function where, within the relevant range, the graph of total costs versus the level of a single activity forms a straight line.

4 pages

Two key assumptions frequently used in cost-behavior estimation are that changes in activity levels explain changes in total costs, and that cost behavior in the relevant range can be estimated with a linear function. Although the assumptions are not always totally true, in many instances the costs of obtaining a more accurate estimate exceeds the additional benefits of the more accurate estimate.

2 pages

Here is a small multiple choice quiz for you to practice. Download a copy, print off and try it. Then check the answers

T. You U. - Questions on forecasting techniques
20 questions
Section 6: Know Budget Methodologies
01:20

The lecture presents the learning objectives as published by the IMA re-phrased as questions. The downloadable file contains past student's answers to some of the questions. Study Horngren and the notes then attempt the questions.

IMA learning outcomes to be tested

Part 1 – Section B.4. Budget methodologies

For each of the budget systems identified (annual/master budgets, project budgeting, activity-based budgeting, zero-based budgeting, continuous (rolling) budgets, and flexible budgeting), the candidate should be able to:

a. define its purpose, appropriate use, and time frame

b. identify the budget components and explain the interrelationships among the components

c. demonstrate an understanding of how the budget is developed

d. compare and contrast the benefits and limitations of the budget system

e. evaluate a business situation and recommend the appropriate budget solution

f. prepare budgets on the basis of information presented

g. calculate the impact of incremental changes to budg

01:27

Here are the answers to some of the learning outcomes of this section that could be tested by the IMA.

Print the PPT's on sheet - six to a sheet and use them as flash cards.

6 pages

A master budget is a comprehensive operation plan of a business unit for a future period, which is for one year or less in most instances. The strategic plan of a firm underlies each of the firm’s master budgets. A master budget coordinates operations and delineates detailed implementation of the planned activities and includes both financial and non-financial (operating) aspects of the planned activities.

2 pages

Here is a small multiple choice quiz for you to practice. Download a copy, print off and try it. Then check the answers

01:06

This is a socrative quiz. Go to socrative.com and register as a student. When asked what room enter -  budgeting

You receive immediate feedback but if you want a pdf of your work email me at - the.cma.coach@gmail.com

T. Your U. -Questions on Budgeting Methodologies
18 questions
Section 7: Know Annual Profit planning ans supporting schedules
02:54

This section is most important. Research answers to the questions in this lecture. Know how the production and purchasing budgets are put together. Also know the supporting schedule for A/R and A/P in the cash flow budget are constructed.The file downloadable file Section B.5 are past candidates notes on the learning ourcomes.

Do the excel problem Vincent Co. and check the solution.

IMA Learning Outcomes to be tested

Section B.5. Annual profit plan and supporting schedules

The candidate should be able to:

a. explain the role of the sales budget in the development of an annual profit plan

b. identify the factors that should be considered when preparing a sales forecast

c. identify the components of a sales budget and prepare a sales budget

d. explain the relationship between the sales budget and the production budget

e. identify the role that inventory levels play in the preparation of a production budget and define other factors that should be considered when preparing a production budget

f. prepare a production budget

g. demonstrate an understanding of the relationship between the direct materials budget, the direct labor budget, and the production budget

h. explain how inventory levels and procurement policies affect the direct materials budget

i. prepare direct materials and direct labor budgets based on relevant information and evaluate the feasibility of achieving production goals on the basis of these budgets

j. demonstrate an understanding of the relationship between the overhead budget and the production budget

k. separate costs into their fixed and variable components

l. prepare an overhead budget

m. identify the components of the cost of goods sold budget and prepare a cost of goods sold budget

n. demonstrate an understanding of contribution margin per unit and total contribution margin, identify the appropriate use of these concepts, and calculate both unit and total contribution margin

o. identify the components of the selling and administrative expense budget

p. explain how specific components of the selling and administrative expense budget may affect the contribution margin

q. prepare an operational (operating) budget

r. prepare a capital expenditure budget

s. demonstrate an understanding of the relationship between the capital expenditure budget, the cash budget, and the pro forma financial statements

t. define the purposes of the cash budget and describe the relationship between the cash budget and all other budgets

u. demonstrate an understanding of the relationship between credit policies and purchasing (payables) policies and the cash budget

v. prepare a cash budge

02:33

Here are the answers to some of the learning outcomes of this section that could be tested by the IMA.

Print the PPT's on sheet - six to a sheet and use them as flash cards.

2 pages

Here is a small multiple choice quiz for you to practice. Download a copy, print off and try it. Then check the answers

T. Your U. - Questions on Annual profit Planning
20 questions
Excel Problem on budgeting with template and solution
Article
Section 8: Know Top Level planning
01:28

IMA Learning Outcomes to be tested

Section B.6. Top-level planning and analysis

The candidate should be able to:

a. define the purpose of a pro forma income statement, a pro forma balance sheet, and a pro forma statement of cash flows; and demonstrate an understanding of the relationship among these statements and all other budgets

b. prepare pro forma income statements based on several revenue and cost assumptions

c. evaluate whether a company has achieved strategic objectives based on pro forma income statements

d. use financial projections to prepare a pro forma balance sheet and a pro forma statement of cash flows

e. identify the factors required to prepare medium- and long-term cash forecasts

f. use financial projections to determine required outside financing and dividend policy

00:49

Here are the answers to some of the learning outcomes of this section that could be tested by the IMA.

Print the PPT's on sheet - six to a sheet and use them as flash cards.

T. Your U. -Questions on Top Level Planning
12 questions
Challenging Questions on Budgets - Know these
35 questions
Section 9: Review Lectures on Budgeting Concepts
Lecture Videos on Budgeting
Preview
04:13
Section 10: Performance Management ( 20% of Exam)
03:45

Explain the difference between a static budget and a flexible budget. Explain what is meant by a static budget variance and a flexible budget variance.

Variance analysis Lecture
Preview
08:39
6 pages

Budgeting—accounting tool managers use for planning and controlling

A. Flexible budgets: comparisons of actual results to planned performance

1. Provides feedback: why actual results differed from planned performance

2. Provides basis for evaluation of performance

8 pages

Budgeting—accounting tool managers use for planning and controlling organizations

A. Overhead costs as major cost for many organizations

1. Planning and controlling overhead costs ongoing challenge to managers

2. Interpreting overhead variances developed primarily for financial reporting requires care on part of managers

2 pages

Here is a small multiple choice quiz for you to practice. Download a copy, print off and try it. Then check the answers

T. Your U. of Cost and Variance Measures
7 questions
Section 11: Know Responsibility Centers
01:57

IMA learning outcomes to be tested

Section C.2. Responsibility centers and reporting segments

The candidate should be able to:

a. identify and explain the different types of responsibility centers

b. recommend appropriate responsibility centers given a business scenario

c. calculate a contribution margin

d. analyze a contribution margin report and evaluate performance

e. identify segments that organizations evaluate, including product lines, geographical areas, or other meaningful segments

f. explain why the allocation of common costs among segments can be an issue in performance evaluation

g. identify methods for allocating common costs such as stand-alone cost allocation and incremental cost allocation

h. define transfer pricing and identify the objectives of transfer pricing

i. identify the methods for determining transfer prices and list and explain the advantages and disadvantages of each method

j. identify and calculate transfer prices using variable cost, full cost, market price, negotiated price, and dual-rate pricing

k. explain how transfer pricing is affected by business issues such as the presence of outside suppliers and the opportunity costs associated with capacity usage

l. describe how special issues such as tariffs, exchange rates, taxes, currency restrictions, expropriation risk, and the availability of materials and skills affect performance evaluation in multinational companies

Lecture on Responsibility Accounting
Preview
22:06
7 pages

Responsibility accounting: system that measures the plans and actions of each responsibility center

A. Budgeting help managers manage – a human activity

3 pages
The whole of the organization may be enhanced if the subunits of the decentralized organization work toward goal congruence—managers and employees working in their own best interest taking actions that achieve the overall goals of top management.
Test Your Understanding Responsibility Centres
8 questions
Section 12: Know Performance Measures
02:50

IMA learning outcomes to be tested

Section C.3. Performance measures

The candidate should be able to:

a. explain why performance evaluation measures should be directly related to strategic and operational goals and objectives; why timely feedback is critical; and why performance measures should be related to the factors that drive the element being measured, e.g., cost drivers and revenue drivers

b. explain the issues involved in determining product profitability, business unit profitability, and customer profitability, including cost measurement, cost allocation, investment measurement, and valuation

c. calculate product-line profitability, business unit profitability, and customer profitability

d. evaluate customers and products on the basis of profitability and recommend ways to improve profitability and/or drop unprofitable customers and products

e. define and calculate return on investment (ROI)

f. analyze and interpret ROI calculations

g. define and calculate residual income (RI)

h. analyze and interpret RI calculations

i. compare and contrast the benefits and limitations of ROI and RI as measures of performance

j. explain how revenue and expense recognition policies may affect the measurement of income and reduce comparability among business units

k. explain how inventory measurement policies, joint asset sharing, and overall asset measurement policies may affect the measurement of investment and reduce comparability among business units

l. define key performance indicators (KPIs) and discuss the importance of these indicators in evaluating a firm

m. define the concept of a balanced scorecard and identify its components

n. identify and describe the perspectives of a balanced scorecard, including financial, customer, internal process, and learning and growth

o. identify and describe the characteristics of successful implementation and use of a balanced scorecard

p. analyze and interpret a balanced scorecard and evaluate performance on the basis of the analysis

q. recommend performance measures and a periodic reporting methodology given operational goals and actual results

2 pages
Measure performance from a financial and nonfinancial perspective
Lecture on the Balanced Scorecard
03:41
Test Your Understanding on Performance Measures
10 questions
Section 13: Cost Management ( 20% of Exam).
02:26

IMA learning outcomes to be tested

Section D.1. Measurement concepts

The candidate should be able to:

a. demonstrate an understanding of the behavior of fixed and variable costs in the long and short terms and how a change in assumptions regarding cost type or relevant range affects these costs

b. identify cost objects and cost pools and assign costs to appropriate activities

c. demonstrate an understanding of the nature and types of cost drivers and the causal relationship that exists between cost drivers and costs incurred

d. demonstrate an understanding of the various methods for measuring costs and accumulating work-in-process and finished goods inventories

e. identify and define cost measurement techniques such as actual costing, normal costing, and standard costing; calculate costs using each of these techniques; identify the appropriate use of each technique; and describe the benefits and limitations of each technique

f. demonstrate an understanding of variable (direct) costing and absorption (full) costing and the benefits and limitations of these measurement concepts

g. calculate inventory costs, cost of goods sold, and operating profit using both variable costing and absorption costing

h. demonstrate an understanding of how the use of variable costing or absorption costing affects the value of inventory, cost of goods sold, and operating income

i. prepare summary income statements using variable costing and absorption costing

j. determine the appropriate use of joint product and by-product costing

k. demonstrate an understanding of concepts such as split-off point and separable costs

l. determine the allocation of joint product and by-product costs using the physical measure method, the sales value at split-off method, constant gross profit (gross margin) method, and the net realizable value method; and describe the benefits and limitations of each method

Section 14: Know how to Perform Cost Behaviour Analysis
12:57

Business activity can be considered to be either sales or production. If sales (or production) increases then which costs in a business will increase and by how much?

Topic 1A - Another lecture on cost behaviour
10:29
04:17

We go over a number of multiple choice questions that I have chosen to highlight the major concepts.

Level A questions test your knowledge of the concepts in this section.

You can download the questions and try them before viewing the video or you can keep pausing the video and answer before I do,

Showme Problem set #1
08:03
Showme Problem Set #2 - Cost Behaviour
07:06
Showme Problem set #3 Cost Behaviour
08:38
Showme Problem #4 -High Low method
03:22
Showme Problem #5 -High Low problem
03:12
05:23

We go over a number of multiple choice questions that I have chosen to highlight the major concepts.

 and test your understanding.

Level B questions are designed to test your ability to apply the management concepts in this section.

You can download the questions and try them before viewing the video or you can keep pausing the video and answer before I do,

Problem demo on Variable and absorption costing
04:11
Section 15: Lecture Reviews of Job Costing
01:57

Ima Learning Outcomes as questions

Section D.2. Costing systems

For each cost accumulation system identified (job order costing, process costing, activity-based costing, life-cycle costing), the candidate should be able to:

a. define the nature of the system, understand the cost flows of the system, and identify its appropriate use

b. calculate inventory values and cost of goods sold

c. demonstrate an understanding of the proper accounting for normal and abnormal spoilage

d. discuss the strategic value of cost information regarding products and services, pricing, overhead allocations, and other issues

e. identify and describe the benefits and limitations of each cost accumulation system

f. demonstrate an understanding of the concept of equivalent units in process costing and calculate the value of equivalent units

g. define the elements of activity-based costing such as cost pool, cost driver, resource driver, activity driver, and value-added activity

h. calculate product cost using an activity-based system and compare and analyze the results with costs calculated using a traditional system

i. explain how activity-based costing can be utilized in service firms

j. demonstrate an understanding of the concept of life-cycle costing and the strategic value of including upstream costs, manufacturing costs, and downstream costs

2 pages

Here is a small multiple choice quiz for you to practice. Download a copy, print off and try it. Then check the answers

Job Costing and Process Costing Lecture Videos
Preview
03:39
Job Costing System Lecture and demo problem
19:49
Activity Based Costing Lecture and demo problem
Preview
24:13
06:23

Try these two ABC problems. Pause the video or print off the problems in resources.

2 pages

Here is a small multiple choice quiz for you to practice. Download a copy, print off and try it. Then check the answers

Section 16: Know how to allocate Overhead Costs
01:59

IMA learning Outcomes to be tested

Section D.3. Overhead costs

The candidate should be able to:

a. distinguish between fixed and variable overhead expenses

b. determine the appropriate time frame for classifying both variable and fixed overhead expenses

c. demonstrate an understanding of the different methods of determining overhead rates, e.g., plant-wide rates, departmental rates, and individual cost driver rates

d. describe the benefits and limitations of each of the methods used to determine overhead rates

e. identify the components of variable overhead expense

f. determine the appropriate allocation base for variable overhead expenses

g. calculate the per unit variable overhead expense

h. identify the components of fixed overhead expense

i. identify the appropriate allocation base for fixed overhead expense

j. calculate the fixed overhead application rate

k. describe how fixed overhead can be over or under applied and how this difference should be accounted for in the cost of goods sold, work-in-process, and finished goods accounts

l. compare and contrast traditional overhead allocation with activity-based overhead allocation

m. calculate overhead expense in an activity-based costing setting

n. identify and describe the benefits derived from activity-based overhead allocation

o. explain why companies allocate the cost of service departments such as Human Resources or Information Technology to divisions, departments, or activities

p. calculate service or support department cost allocations using the direct method, the reciprocal method, the step-down method, and the dual allocation method

q. estimate fixed costs using the high-low method and demonstrate an understanding of how regression can be used to estimate fixed

Problem demo on Overhead Allocation
02:02
02:04

IMA learning Outcomes to be tested

Section D.4. Supply Chain Management

The candidate should be able to:

a. explain supply chain management

b. define lean manufacturing and describe its central purpose

c. identify and describe the operational benefits of implementing lean manufacturing

d. define materials requirements planning (MRP)

e. identify and describe the operational benefits of implementing a just-in-time (JIT) system

f. identify and describe the operational benefits of enterprise resource planning (ERP)

g. explain the concept of outsourcing and identify the benefits and limitations of choosing this option

h. demonstrate a general understanding of the theory of constraints

i. identify the five steps involved in theory of constraints analysis

j. define throughput costing (super-variable costing) and calculate inventory costs using throughput costing

k. define and calculate throughput contribution

l. describe how capacity level affects product costing, capacity management, pricing decisions and financial statements

m. explain how using practical capacity as denominator for fixed costs rate enhances capacity management

n. calculate the financial impact of implementing the above mentioned methods

01:56

IMA Learning Outcomes to be tested

D.5. Business process improvement

The candidate should be able to:

a. define value chain analysis

b. identify the steps in value chain analysis

c. explain how value chain analysis is used to better understand a firm's competitive advantage

d. define, identify and provide examples of a value-added activity and explain how the value-added concept is related to improving performance

e. demonstrate an understanding of process analysis and business process reengineering

f. define best practice analysis and discuss how it can be used by an organization to improve performance

g. demonstrate an understanding of benchmarking process performance

h. identify the benefits of benchmarking in creating a competitive advantage

i. apply activity-based management principles to recommend process performance improvements

j. explain the relationship among continuous improvement techniques, activity-based management, and quality performance

k. explain the concept of continuous improvement and how it relates to implementing ideal standards and quality improvements

l. describe and identify the components of the costs of quality, commonly referred to as prevention costs, appraisal costs, internal failure costs, and external failure costs

m. calculate the financial impact of implementing the above mentioned processes

n. identify and discuss ways to make accounting operations more efficient, including process walk-throughs, process training, identification of waste and over capacity, identifying the root cause of errors, reducing the accounting close cycle (fast close), and shared services

Test Your Understanding of Cost Management
10 questions
Section 17: External Financial Reporting Decisions ( 15% of the Exam). There wi
4 pages
The income statement measures the success of enterprise operations for a given period of time. This statement assists the business community in determining profitability, investment value, and credit worthiness of a particular business enterprise
6 pages
If a balance sheet is examined carefully, users can gain a considerable amount of information related to liquidity, solvency, and financial flexibility.
1 page

The primary purpose of the statement of cash flows is to allow users to assess the capacity of the enterprise to generate cash and cash equivalents and the needs of the enterprise for cash resources. In accomplishing its purpose, the statement focuses attention on three different activities related to cash flows:

  • Operating activities represent the principal revenue-producing activities of the enterprise and all other activities that are not investing or financing activities.
  • Investing activities represent the acquisition and disposal of long-term assets and other investments not included in "cash equivalents."
  • Financing activities represent activities that result in changes in the size and composition of the equity capital and borrowing of the enterprise.
Preparing a Cash Flow Statement
09:47
Cash Flow Demo Problem
05:55
Cash Flow Demo problem #2
07:08
Recognition, Measurement, Valuation and Disclosure
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Instructor Biography

Dr. John Mclellan, Accounting Professor

I am a Professor of Accounting with over thirty-five years experience teaching accounting to college students, undergraduate and MBA university students as well as CMA candidates seeking to earn their Professional Certified Management Accountant Designation.

I achieved my Certified Management Accountant Designation 40 years ago. With that I then earned my Masters of Business Administration degree and later a PHD in accounting.

I have developed and will continue to develop a number of courses in both Financial Accounting and Management Accounting for you - a college or university student (or even a secondary student) to help you to achieve the best result in your undergraduate accounting course. If you get an "A" from me I guarantee you will get an "A" from your accounting prof.

For Graduate students, I have a course to prepare those of you who do not have a business degree for the Masters of Business Administration. Also I have a course at the masters level called Managerial Accounting.

For CMA Candidates, I have courses to prepare you to successfully pass their Certified Management Accounting Exams offered by Institute of Management Accountants.


Dr. John

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