EC4:Performance management(Compulsory for specialty ACCA)

The course consists of 4 modules: specialized cost and management accounting techniques, decision-making techniques, budgeting and control, Performance measurement and control.

This course is accredited with the ACCA, which mean that registered students can be entitled to ACCA qualification exemption from the course in Performance Management.

Knowledge of microeconomics, mathematical skills – including linear programming and probability theory, elements of statistics, as well as cost accounting or management accounting according to ACCA format is required.

It builds on management accounting knowledge and starts with the more specialized management accounting techniques such as target costing or ABC costing. It introduces also decision- making techniques that assist companies with solving problems related to scarce resource, pricing and make-or-buy decisions. It further explains how to include risk and uncertainty in real-life decisions. The course explores different budgeting techniques, the behavioural aspects of budgeting, but also standard costing and variances analysis. All this knowledge allows to conclude with performance management systems, measurement and control including assessing performance in divisionalised businesses.

After finalizing this course a student:

knows terminology in the area of modern cost accounting techniques and understands situations in which they can be used appropriately

knows decisions making methods, differentiates between risk and uncertainty, perfect information and unperfect information, is conscious of their existence in decision making in a changing environment

knows general principles of budgeting, as well as latest solution developed in this area

differentiates between types of budgeting, knows how to use standard costing in order to measure and control performance, can recommend remedy actions

can solve exercises using different cost accounting methodologies

can choose decision making technique also in situation of limited resources, can measure risk and take it into account

can evaluate performance based on financial and non-financial criteria

participates in discussions related to management information systems, performance measurement and evaluation