CIMA BA2 Exam Practice Kit

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CIMA BA2

• Fundamentals of Management Accounting

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Fundamentals of Management Accounting
This subject deals with the fundamental knowledge
and techniques that underpin management
accounting. It identifies the position of the
management accountant within organisations and
the role of CIMA. The subject portrays the role
of management accounting in the contexts of
commercial and public sector bodies and its wider
role in society. The identification and
classification of costs and their behaviour
provides the basis for understanding and applying
the tools and techniques needed to plan, control
and make decisions. Budgetary control requires
the setting of targets and standards which then
allow the performance of organisations to be
reported and analysed by the calculation of
variances. Investment appraisal, break-even
analysis and profit maximisation are used to
inform both long and short term decision making.
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