Management Accounting (MA/FMA)

MANAGEMENT ACCOUNTING (MA/FMA)

Syllabus and
study guide
SEPTEMBER 2025 TO AUGUST 2026
Designed to help with planning study and to
provide detailed information on what could be
assessed in any examination session

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 Management Accounting (MA/FMA)

Contents
1. Overall aim of the syllabus ................................................................................................ 3
2. Introduction to the syllabus................................................................................................ 3
3. Main capabilities ............................................................................................................... 4
4. Intellectual levels............................................................................................................... 4
5. The syllabus ...................................................................................................................... 5
6. Detailed study guide.......................................................................................................... 6
7. Summary of changes to Management Accounting (MA/FMA) ......................................... 13
8. Approach to examining the syllabus ................................................................................ 13
9. Relational diagram linking Management Accounting (MA/FMA) with other exams........... 14
10. Guide to ACCA examination structure and delivery mode ............................................. 14
11. Guide to ACCA examination assessment ...................................................................... 15
12. Qualification structure ................................................................................................... 15
13. Learning hours and education recognition ..................................................................... 16

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 Management Accounting (MA/FMA)

1. Overall aim of the syllabus

To develop knowledge and understanding of management accounting techniques to support

management in planning, controlling and monitoring performance in a variety of business
contexts.

2. Introduction to the syllabus

The syllabus for Management Accounting (MA)/FMA, introduces candidates to elements of

management accounting which are used to make and support decisions.

The syllabus starts by introducing the nature, the source and purpose of management
information followed by the statistical techniques used to analyse data. Then the syllabus
addresses cost accounting and the costing techniques used in business which are essential
for any management accountant.

The syllabus then looks at the preparation and use of budgeting and standard costing and
variance analysis as essential tools for planning and controlling business activities. The
syllabus concludes with an introduction to measuring and monitoring the performance of an
organisation.

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 Management Accounting (MA/FMA)

3. Main capabilities

On successful completion of this exam, candidates should be able to:

A Explain the nature, source and purpose of management information

B Explain and apply data analysis and statistical techniques
C Explain and apply cost accounting techniques
D Prepare budgets for planning and control
E Compare actual costs with standard costs and analyse any variances
F Explain and apply performance measurements and monitor business performance.

Relational diagram of main capabilities:

4. Intellectual levels

ACCA qualifications are designed to progressively broaden and deepen the knowledge and
skills demonstrated by the student at a range of levels on their way through each
qualification.

Throughout, the study guides assess both knowledge and skills. Therefore, a clear
distinction is drawn, within each subject area, between assessing knowledge and skills and
in assessing their application within an accounting or business context. The assessment of
knowledge is denoted by a superscript K and the assessment of skills is denoted by the
superscript S.

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 Management Accounting (MA/FMA)

5. The syllabus E Standard costing

1. Standard costing system

A The nature, source and purpose of
management information 2. Variance calculations and analysis

1. Accounting for management 3. Reconciliation of budgeted and actual

profit
2. Sources of data
F Performance measurement
3. Cost classification
1. Performance measurement - overview
4. Presenting information
2 Performance measurement - application
B Data analysis and statistical
techniques 3 Cost reductions and value enhancement

1. Sampling methods
4. Monitoring performance and reporting
2. Analytical techniques in budgeting and
forecasting

3. Summarising and analysing data

4. Spreadsheets

C Cost accounting techniques.

1. Accounting for material, labour and

overheads

2. Absorption and marginal costing

3. Cost accounting methods

4. Alternative cost accounting principles

D Budgeting

1. Nature and purpose of budgeting

2. Budget preparation

3. Flexible budgets

4. Asset budgeting and investment

appraisal

5. Budgetary control and reporting

6. Behavioural aspects of budgeting

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 Management Accounting (MA/FMA)

6. Detailed study guide 3. Cost classification

a) Explain and illustrate production and

A The nature, source and non-production costs.[K]
purpose of management
information b) Describe the different elements of non-
production costs - administrative,
1. Accounting for management selling, distribution and finance.[K]

a) Describe the purpose and role of cost c) Describe the different elements of
and management accounting within an production costs - materials, labour and
organisation.[K] overheads.[K]

b) Compare and contrast financial d) Explain the importance of the distinction

accounting with cost and management between production and non-production
accounting.[K] costs when valuing output and
inventories.[K]
c) Outline the managerial processes of
planning, decision-making and control.[K] e) Explain and illustrate with examples
classifications used in the analysis of
d) Explain the difference between product/service costs including by
strategic, tactical and operational function, direct and indirect, fixed and
planning.[K] variable, stepped fixed and semi
variable costs.[S]
e) Distinguish between data and
information.[K] f) Explain and illustrate the use of codes in
categorising transactions.[K]
f) Identify and explain the attributes of
good information.[K] g) Identify and interpret graphical
representations of different types of cost
g) Explain the limitations of management behaviour.[S]
information in providing guidance for
managerial decision-making.[K] h) Explain and illustrate the concept of cost
objects, cost units and cost centres.[S]
2. Sources of data
i) Distinguish between cost, profit,
a) Describe the three main data sources: investment and revenue centres.[K]
machine/sensor, transactional and
human/social.[K] j) Describe the differing needs for
information of cost, profit, investment
b) Describe and identify sources and and revenue centre managers.[K]
categories of information including
internal, external, primary and 4. Presenting information
secondary.[K]
a) Prepare written reports representing
c) Explain the uses and limitations of management information in suitable
published information/data (including formats according to purpose.[S]
information from the internet).[K]
b) Use data visualisation to present
d) Identify the data capture costs of information using tables, charts and
management accounting information.[K] graphs (bar charts, line graphs, pie
charts and scatter graphs).[S]

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 Management Accounting (MA/FMA)

c) Interpret information (including tables, h) Explain the advantages and

charts and graphs) presented in disadvantages of linear regression
management reports.[S] analysis.[K]

B Data analysis and statistical i) Explain the principles of time series

techniques analysis (cyclical, trend, seasonal
variation and random elements).[K]
1. Sampling methods
j) Calculate moving averages.[S]
a) Explain sampling techniques (random,
systematic, stratified, multistage, cluster k) Calculate the trend, including the use of
and quota).[K] regression coefficients.[S]

b) Choose an appropriate sampling l) Use trend and seasonal variation

method in a specific situation.[S] (additive and multiplicative) to make
(Note: Derivation of random samples will budget forecasts.[S]
not be examined)
m) Explain the advantages and
2. Analytical techniques in budgeting disadvantages of time series analysis.[K]
and forecasting
n) Explain the purpose of index numbers.[K]
a) Explain the structure of linear functions
and equations.[S] o) Calculate simple and multi-item
(weighted) index numbers for one or
b) Use the high low method to separate more variables, including Laspeyre and
the fixed and variable elements of total Paasche indices.[S]
costs including situations involving semi
variable and stepped fixed costs and p) Describe the product life cycle and
changes in the variable cost per unit.[S] explain its importance in forecasting.[K]

c) Explain the advantages and 3. Summarising and analysing data

disadvantages of using the high low
method to estimate the fixed and a) Describe the five characteristics of big
variable elements of costing.[K] data (volume, variety, velocity, value
and veracity).[K]
d) Construct scatter diagrams and lines of
best fit.[S] b Explain the three types of big data:
structured, semi-structured and
e) Analysis of cost data. unstructured.[K]
(i) Explain the concepts of correlation
coefficient and coefficient of c) Describe the main uses of big data and
determination.[K] data analytics for organisations.[K]
(ii) Calculate and interpret the
correlation coefficient and the d) Describe the two types of data:
coefficient of determination.[S] categorical (nominal and ordinal) and
(iii) Establish a linear function using numerical (continuous and discrete).[S]
regression analysis and interpret the
results.[S] e) Explain the terms descriptive analysis
and inferential analysis.[K]
f) Use linear regression coefficients to
make forecasts of costs and revenues.[S] f) Calculate the mean, mode and median
for ungrouped data and the mean for
g) Adjust historical and forecast data for grouped data.[S]
price movements.[S]

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 Management Accounting (MA/FMA)

g) Calculate measures of dispersion levels where demand in the lead

including the variance, standard time is constant.[S]
deviation and coefficient of variation (ix) Calculate the value of closing
both grouped and ungrouped data.[S] inventory and material issues using
LIFO, FIFO and average
h) Calculate expected values for use in methods.[S]
decision making.[S] (x) Explain Just in Time (JIT) as an
inventory management approach.[K]
i) Explain the properties of a normal
distribution.[S] b) Accounting for labour
(i) Calculate direct and indirect costs
j) Interpret normal distribution graphs and of labour.[S]
tables.[S] (ii) Explain the systems used to
capture and record labour effort.[K]
4. Spreadsheets (iii) Prepare the journal and ledger
entries to record labour cost inputs
a) Explain the role and features of a and outputs.[S]
computer spreadsheet system.[K] (iv) Describe different remuneration
methods: time-based systems,
b) Identify applications for computer piecework systems and individual
spreadsheets and their use in data and group incentive schemes.[K]
analysis, cost and management (v) Calculate the level and analyse the
accounting.[S]
costs and causes of labour
turnover.[S]
C Cost accounting techniques (vi) Explain and calculate labour
efficiency, capacity and production
1. Accounting for material, labour and
volume ratios.[S]
overheads
(vii) Interpret the entries in the labour
account.[S]
a) Accounting for materials
(i) Describe the systems necessary for
c) Accounting for overheads
the ordering, receiving and issuing
(i) Explain the different treatment of
of materials from inventory.[K]
direct and indirect expenses.[K]
(ii) Describe the control procedures
(ii) Describe the procedures involved in
used to monitor physical and ‘book’
determining production overhead
inventory and to minimise
absorption rates.[K]
discrepancies and losses.[K]
(iii) Allocate and apportion production
(iii) Interpret the entries and balances in
overheads to cost centres using an
the material inventory account.[S]
appropriate basis.[S]
(iv) Identify, explain and calculate the
(iv) Reapportion service cost centre
costs of ordering and holding
costs to production cost centres
inventory (including buffer
(including using the reciprocal
inventory).[S]
method where service cost centres
(v) Calculate and interpret optimal
work for each other).[S]
reorder quantities.[S]
(v) Select, apply and discuss
(vi) Calculate and interpret optimal
appropriate bases for absorption
reorder quantities when discounts
rates.[S]
apply.[S]
(vi) Prepare journal and ledger entries
(vii) Produce calculations to minimise
for manufacturing overheads
inventory costs when inventory is
incurred and absorbed.[S]
gradually replenished.[S]
(vii) Calculate and explain the under
(viii) Describe and apply appropriate
and over absorption of overheads.[S]
methods for establishing reorder

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 Management Accounting (MA/FMA)

2. Absorption and marginal costing (ii) Identify situations where the use of
service/operation costing is
a) Explain the importance of, and apply, the appropriate.[K]
concept of contribution.[S] (iii) Illustrate suitable unit cost measures
that may be used in different
b) Demonstrate and discuss the effect of service/operation situations.[S]
absorption and marginal costing on (iv) Carry out service cost analysis in
inventory valuation and profit simple service industry situations.[S]
determination.[S]
4 Alternative cost accounting
c) Calculate profit or loss under absorption principles
and marginal costing.[S]
a) Explain alternative cost management
d) Reconcile the profits or losses calculated techniques (activity-based costing
under absorption and marginal costing.[S] (ABC), target costing and life-cycle
costing).[K]
e) Describe the advantages and
disadvantages of absorption and b) Differentiate alternative cost
marginal costing.[K] management techniques from the
traditional costing techniques (note:
3. Cost accounting methods calculations are not required).[K]

a) Job and batch costing: D Budgeting

(i) Describe the characteristics of job
and batch costing.[K] 1. Nature and purpose of budgeting
(ii) Describe the situations where the
use of job or batch costing would be a) Explain why organisations use
appropriate.[K] budgeting.[K]
(iii) Prepare cost records and accounts in
job and batch costing situations.[S] b) Describe the planning and control cycle
(iv) Establish job and batch costs from in an organisation.[K]
given information.[S]
c) Explain the administrative procedures
b) Process costing used in the budgeting process.[K]
(i) Describe the characteristics of
process costing.[K] d) Describe the stages in the budgeting
(ii) Describe the situations where the process (including sources of relevant
use of process costing would be data, planning and agreeing draft
appropriate.[S] budgets and purpose of forecasts and
(iii) Explain the concepts of normal and how they link to budgeting).[K]
abnormal losses and abnormal
gains.[K] 2. Budget preparation
(iv) Distinguish between by-products and
joint products.[K] a) Explain the importance of the principal
(v) Value by-products and joint products budget factor in constructing a budget.[K]
at the point of separation.[S]
(vi) Evaluate the benefit of further b) Prepare sales budgets.[S]
processing.[S]
c) Prepare functional budgets (production,
c) Service/operation costing raw materials usage and purchases,
labour, variable and fixed overheads).[S]
(i) Define the characteristics of service
organisations.[K] d) Prepare cash budgets.[S]

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 Management Accounting (MA/FMA)

e) Prepare master budgets (statement of g) Identify and evaluate relevant cash

profit or loss and statement of financial flows for individual investment
position).[S] decisions.[S]

f) Explain and illustrate ‘what if’ analysis h) Explain and illustrate the net present
and scenario planning.[S] value (NPV) and internal rate of return
(IRR) methods of discounted cash
g) Describe the impact of the general flow.[S]
economic environment on costs/revenue
in budgeting.[K] i) Calculate present value using annuity
and perpetuity formulae.[S]
h) Explain the importance of considering
sustainability in budget preparation.[K] j) Calculate NPV, IRR and payback
(discounted and non-discounted).[S]
3. Flexible budgets
k) Interpret the results of NPV, IRR and
a) Explain the importance of flexible payback calculations of investment
budgets in control.[K] viability.[S]

b) Explain the disadvantages of fixed 5. Budgetary control and reporting

budgets in control.[K]
a) Calculate simple variances between
c) Identify situations where fixed or flexible flexed budget, fixed budget and actual
budgetary control would be sales, costs and profits.[S]
appropriate.[S]
b) Discuss the relative significance of
d) Flex a budget to a given level of variances.[K]
volume.[S]
c) Explain potential action to eliminate
4. Asset budgeting and investment variances.[K]
appraisal
d) Define the concept of responsibility
a) Discuss the importance of investment accounting and its significance in
planning and control.[K] control.[K]

b) Define and distinguish between asset e) Explain the concept of controllable and
and expense items.[K] uncontrollable costs.[K]

c) Outline the issues to consider and the f) Prepare control reports suitable for
steps involved in the preparation of an presentation to management (to include
asset expenditure budget.[K] recommendation of appropriate control
action).[S]
d) Explain and illustrate the difference
between simple and compound interest, 6. Behavioural aspects of budgeting
and between nominal and effective
interest rates.[S] a) Explain the importance of motivation in
performance management.[K]
e) Explain and illustrate compounding and
discounting.[S] b) Identify factors in a budgetary planning
and control system that influence
f) Explain the distinction between cash motivation.[S]
flow and profit and the relevance of cash
flow to investment appraisal.[K]

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 Management Accounting (MA/FMA)

c) Explain the impact of targets on h) Explain the interrelationships between

motivation.[K] the variances.[K]

d) Discuss managerial incentive i) Calculate actual or standard figures

schemes.[K] where the variances are given.[K]

e) Discuss the advantages and 3 Reconciliation of budgeted and

disadvantages of a participative actual profit
approach to budgeting.[K]
a) Reconcile budgeted profit with actual
f) Explain top down and bottom up profit under standard absorption
approaches to budgeting.[K] costing.[S]

E Standard costing b) Reconcile budgeted profit or contribution

with actual profit or contribution under
1. Standard costing standard marginal costing.[S]

a) Explain the purpose and principles of F Performance measurement

standard costing.[K]
1. Performance measurement -
b) Explain and illustrate the difference overview
between standard, marginal and
absorption costing.[K] a) Discuss the purpose of mission
statements and their role in performance
c) Establish the standard cost per unit measurement.[K]
under absorption and marginal
costing.[S] b) Discuss the purpose of strategic,
operational and tactical objectives and
2 Variance calculations and analysis their role in performance
measurement.[K]
a) Calculate sales price and volume
variance.[S] c) Discuss the impact of economic and
market conditions on performance
b) Calculate materials total, price and measurement.[K]
usage variance.[S]
d) Explain the impact of government
c) Calculate labour total, rate and regulation on performance
efficiency variance.[S] measurement.[K]
e)
d) Calculate variable overhead total, Explain the impact of sustainability on
expenditure and efficiency variance.[S] performance measurement.[K]

e) Calculate fixed overhead total, 2 Performance measurement -

expenditure and, where appropriate, application
volume, capacity and efficiency
a) Discuss and calculate measures of
variance.[S]
financial performance (profitability,
liquidity, efficiency and gearing) and
f) Interpret the variances.[S]
non-financial measures.[S]
g) Explain factors to consider before
b) Perspectives of the Balanced Scorecard
investigating variances, explain possible
(i) discuss the advantages and
causes of the variances and
limitations of the balanced
recommend control action.[S]
scorecard.[K]

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 Management Accounting (MA/FMA)

(ii) describe performance indicators for 3. Cost reductions and value

financial, customer, internal business enhancement
process and innovation and
learning.[K] a) Compare cost control and cost
(iii) discuss critical success factors and reduction.[K]
key performance indicators and their
link to objectives and mission b) Describe and evaluate cost reduction
statements.[K] methods.[S]
(iv) establish critical success factors and
key performance indicators in a c) Describe and evaluate value analysis.[S]
specific situation.[S]
4 Monitoring performance and
c) Economy, efficiency and effectiveness reporting
(i) explain the concepts of economy,
efficiency and effectiveness.[K] a) Discuss the importance of non-financial
(ii) describe performance indicators for performance measures.[K]
economy, efficiency and
effectiveness.[K] b) Discuss the relationship between short-
term and long-term performance.[K]
(iii) establish performance indicators for
economy, efficiency and
c) Discuss the measurement of
effectiveness in a specific situation.[S]
performance in service industry
(iv) discuss the meaning of each of the
situations.[K]
efficiency, capacity and activity
ratios.[K] d) Discuss the measurement of
(v) calculate the efficiency, capacity and performance in non-profit seeking and
activity ratios in a specific situation.[S] public sector organisations.[K]
d) Resource utilisation e) Discuss measures that may be used to
(i) describe measures of performance assess managerial performance and the
utilisation in service and practical problems involved.[K]
manufacturing environments.[K]
(ii) establish measures of resource f) Discuss the role of benchmarking in
utilisation in a specific situation.[S] performance measurement.[K]

e) Profitability g) Produce reports highlighting key areas

(i) calculate return on investment and for management attention and
residual income.[S] recommendations for improvement.[S]
(ii) explain the advantages and
limitations of return on investment
and residual income.[K]

f) Quality
(i) distinguish performance
measurement issues in service and
manufacturing industries.[K]
(ii) describe performance measures
appropriate for service industries.[K]
(iii) Explain total quality management
(TQM) as a quality management
technique.[K]

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 Management Accounting (MA/FMA)

7. Summary of changes to Management Accounting

(MA/FMA)

ACCA periodically reviews it qualification syllabuses so that they fully meet the needs of
stakeholders such as employers, students, regulatory and advisory bodies and learning
providers.

There have been minor wording changes as detailed in the table below

Table of amendments

Section Subject area Details of change

A2 Sources of data Small wording changes to A2b and A2d.
C4 Alternative cost accounting Small wording changes to C4a and C4b.
principles

8. Approach to examining the syllabus

The syllabus is assessed by two-hour computer-based examination. Questions will assess

all parts of the syllabus and will test knowledge and some comprehension or application of
this knowledge. The examination will consist of two sections. Section A will contain 35 two-
mark objective test questions (OTs). Section B will contain 3 ten-mark multi-task questions
(MTQs) each of which will examine Budgeting, Standard costing and Performance
measurement sections of the syllabus.

Note: Budgeting MTQs in Section B can also include tasks from B2 Analytical techniques in
budgeting and forecasting. B4 Spreadsheets could be included in any of the MTQs, as either
the basis for presenting information in the question scenario or as a task within the MTQ.

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 Management Accounting (MA/FMA)

9. Relational diagram linking Management Accounting

(MA/FMA) with other exams

The Foundations in Accountancy suite of qualifications is designed so that a student can

progress through three discrete levels; RQF Level 2, 3, and 4. Students are recommended
to enter Foundations in Accountancy at the level which is most appropriate to their needs
and to take examinations in order, but this is not a mandatory requirement.

10. Guide to ACCA examination structure and delivery

mode

The structure of examinations varies.

The Foundations in Accountancy (FIA) examinations contain 100% compulsory questions to

encourage candidates to study across the breadth of each syllabus.

All FIA examinations are assessed by two-hour computer-based examinations.

The pass mark for all FIA examinations is 50%.

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 Management Accounting (MA/FMA)

11. Guide to ACCA examination assessment

ACCA reserves the right to examine anything contained within the study guide at any
examination session. This includes knowledge, techniques, principles, theories, and
concepts as specified. For specified financial accounting, audit and tax examinations, except
where indicated otherwise, ACCA will publish examinable documents once a year to indicate
exactly what regulations and legislation could potentially be assessed within identified
examination sessions.

For this examination, regulation issued or legislation passed on or before 31 August

annually, will be assessed from 1 September of the following year to 31 August of the year
after. Please refer to the examinable documents for the exam (where relevant) for further
information.

Regulation issued or legislation passed in accordance with the above dates may be
examinable even if the effective date is in the future. The terms ‘issued’ or ‘passed’ relate to
when regulation or legislation has been formally approved.

The term ‘effective’ relates to when regulation or legislation must be applied to entity
transactions and business practices.

The study guide offers more detailed guidance on the depth and level at which the
examinable documents will be examined. The study guide should therefore be read in
conjunction with the examinable documents list.

12. Qualification structure

The qualification structure requires candidates who wish to be awarded the ACCA Diploma
in Accounting and Business (RQF Level 4) to pass the Business and Technology (BT)/FBT,
Management Accounting (MA)/FMA and the Financial Accounting (FA)/FFA examinations
and successfully complete the Foundations in Professionalism (FiP) module.

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 Management Accounting (MA/FMA)

13. Learning hours and education recognition

As a member of the International Federation of Accountants, ACCA seeks to enhance the

education recognition of its qualification on both national and international education
frameworks, and with educational authorities and partners globally. In doing so, ACCA aims
to ensure that its qualifications are recognised and valued by governments and regulatory
authorities and employers across all sectors. To this end, ACCA qualifications are currently
recognised on the educational frameworks in several countries. Please refer to your national
education framework regulator for further information about recognition.

ACCA’s content partners are BPP Learning Media and Kaplan Publishing. They create their
own learning materials. For more information about the types of materials offered, please
visit their websites and contact them directly.

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