CPA Strategic Management Accounting 3rd Edition -2020 (HD) Notes

I did not prepare these CPA Strategic Management Accounting notes for other. I just wanted the perfect notes for me when I sit for the exam. Since I’ve done that, and received HD, I thought I would share these SMA 3rd Edition notes with you. The whole idea behind creating these was to target the exams. And I din’t want to depend on the study guide. Even though there are references to the study guide and I advice you to check them, you can eaily pass the exam just with these. I’m that confident. These are the perfect CPA Strategic Management Accounting notes for a busy individual like myself.

All the modules and topics are covered. They are:

• Module 1: Introduction to Strategic Management Accounting 1
• Part A: Value (p.26) 1
• 1.1 Shareholder value (p.27) 1
• 1.2 Customer value (p.27) 1
• 1.3 Stakeholder Value (p.27) 1
• 1.4 Which viewpoint should be taken when determining ‘value’? (p.27) 2
• Part B: The Strategic Management Process (p.30) 3
• 1.5 Strategic Management Accounting – Supporting Managers (p.30) 3
• Part C: The Role of Management Accountants in Strategic Management (p.38) 4
• 1.6 The Role of Management Accountants (p.38) 4
• Part D: The Key Challenges Facing Management Accountants (p.43) 5
• 1.7 Challenges (p.43) 5
• 1.8 Causes of Change in the Business Environment (p.46) 5
• Part E: Analytical Techniques Available to Management Accountants (p.67) 9
• 1.9 Value Analysis (p.68) 9
• 1.10 Strengths, weaknesses, opportunities and threats (SWOT) Analysis (p.70) 9
• 1.11 Internal Analysis (p.71) 10
• 1.12 External Analysis (p.76) 11
• 1.13 Porter’s 5 Forces Model V (p.77) 12
• Module 2: Information for Decision-Making 14
• Part A: Types of information needed for stakeholder decision-making (p.101) 14
• 2.1 The information needs of stakeholders (p.101) 14
• 2.2 Stakeholder Management (p.104) 15
• Part B: Information, information systems and their effect on organisational decision-making and performance (p.112) 17
• 2.3 Impact of information systems on strategy formulation and implementation (p.112) 17
• 2.4 Different Types of Information Systems (p.113) 17
• 2.5 Sourcing, aggregating and integration information (p.119) 18
• 2.6 Characteristics and limitations of different types of information (p.123) 20
• 2.7 Characteristics of information (p.125) 21
• 2.8 Effects and challenges of new information systems and platforms (p.131) 22
• Part C: The role of Management Accountants in Influencing Stakeholder Decision-Making (p.135) 24
• 2.9 Balancing stakeholder requirements and information delivery (p.135) 24
• 2.10 Differing Levels of Information in the Organisation (p.136) 24
• 2.11 Importance of linking information to strategy (p.141) 26
• 2.12 Role of the Management Accountant (p.144) 26
• Part D: Upgrading or replacing information systems (p.151) 28
• 2.13 Stimulus for new or updated systems (p.151) 28
• 2.14 Making a Preliminary Assessment (p.151) 28
• 2.15 Pitfalls in evaluating major information needs (p.160) 32
• 2.16 Analysing new and existing information systems (p.160) 32
• 2.17 Evaluating a suggested information solution (p.163) 34
• Module 3: Planning, Budgeting and Forecasting 36
• Part A: Introduction to Plans, Budgets and Forecasts (p.187) 36
• 3.1 Relationship between budgets and strategic planning (p.187) 36
• 3.2 Roles of Operational Plan, Budgets and Forecasts (p.189) 36
• 3.3 Purposes of a Budget (p.190) 37
• 3.4 Relationship with Responsibility Accounting (p.192) 37
• 3.5 Planning and Control (p.195) 38
• Part B: Developing Master Budgets (p.196) 39
• 3.6 Impact of external and internal factors on budgets (p.196) 39
• 3.7 Preparing Operational Budgets in Manufacturing Organisations (p.198) 39
• 3.8 Preparing budgets in non-manufacturing organisations (p.204) 41
• 3.9 Preparing Financial budgets (p.204) 41
• 3.10 Preparing budgets for various departments (p.206) 42
• 3.11 Preparing Flexible Budgets 42
• Part C: Variance Analyses and Control (p.209) 43
• 3.12 Static vs Flexible Budgets (p.209) 43
• 3.13 Profit and Revenue-related Variances (p.212) 43
• 3.14 Direct Material Analysis (p.215) 44
• 3.15 Direct Labour Analysis (p.217) 44
• 3.16 Variable Manufacturing Overhead Analysis (p.218) 45
• 3.17 Fixed Manufacturing Overhead Analysis (p.221) 46
• Part D: Behavioural Aspects of Budgets (p.232) 48
• 3.18 Participative Budgeting (p.232) 48
• 3.19 Setting Realistic and Achievable Targets (p.236) 48
• 3.20 Monetary and Non-Monetary Incentive Schemes (p.237) 48
• Part E: Alternative Approaches to Budgeting (p.240) 49
• 3.21 Shortcomings of Traditional Budgets (p.240) 49
• 3.22 Incremental Budgeting (p.241) 49
• 3.23 Zero-Based Budgeting (p.241) 49
• 3.24 Activity-Based Budgeting (ABB) (p.242) 49
• 3.25 Beyond Budgeting (BB): Managing without budgets (p.245) 50
• Module 4: Project Management 51
• Part A: Project Management Defined (p.265) 51
• 4.1 What is a Project? (p.265) 51
• 4.2 What is Project Management? (p.266) 51
• 4.3 The Project Management Process (p.267) 51
• 4.4 Organisational Structures for Projects (p.271) 52
• Part B: Roles in Project Management (p.276) 54
• 4.5 Project Sponsor (p.276) 54
• 4.6 Project Manager (p.276) 54
• 4.7 The Project Team (p.280) 55
• 4.8 International Project Teams (p.282) 56
• 4.9 Virtual Project Teams (p.284) 57
• Part C: The Management Accountant’s Role in Project Selection (p.286) 58
• 4.10 Developing a Business Case for Projects (p.286) 58
• 4.11 Strategic Fit (p.287) 58
• 4.12 Stakeholder Identification and Assessment (p.290) 58
• 4.13 Risk Assessment (p.295) 60
• 4.14 Financial Analysis – Single Project (p.299) 62
• 4.15 Financial Analysis – Multiple Projects (p.314) 66
• Part D: The Management Accountant’s Role in Project Planning (p.316) 67
• 4.16 Project Scheduling (p.317) 67
• 4.17 Project Budgeting (p.328) 70
• 4.18 Supplier Contracts (p.329) 70
• Part E: The Management Accountant’s Role in Project Implementation and Control (p.330) 71
• 4.19 Monitoring Progress (p.330) 71
• 4.20 Monitoring Cost (p.331) 71
• 4.21 Monitoring Specification and Quality (p.335) 72
• 4.22 Measuring Performance (p.337) 72
• 4.23 The Importance of Probity in Projects (p.338) 73
• 4.24 Risk Management (p.339) 73
• 4.25 Stakeholder Management (p.341) 74
• Part F: The Management Accountant’s Role in Project Completion and Review (p.343) 75
• 4.26 The Completion Decision (p.343) 75
• 4.27 Checklist (p.343) 75
• 4.28 Specification satisfaction consensus (p.343) 75
• 4.29 Strategic Fit Assessment (p.344) 75
• 4.30 Stakeholder Satisfaction Assessment (p.345) 75
• 4.31 Financial Closure (p.345) 75
• 4.32 Resource dispersion (p.346) 76
• 4.33 Final report (p.346) 76
• 4.34 Knowledge management (p.347) 76
• Module 5: Performance Management 77
• Part A: The Role of Performance Management (p.386) 77
• 5.1 What is ‘performance’ and ‘performance management’? (p.386) 77
• 5.2 Performance management and its links to strategy (p.387) 77
• 5.3 Financial Performance Management (p.391) 77
• 5.4 Non-financial performance management (p.392) 78
• 5.5 The measurability and reporting of performance (p.393) 78
• 5.6 The Multiple Roles of Performance Management (p.396) 78
• Part B: Strategy, Management Control and Performance Management (p.318) 82
• 5.7 Performance Management and Control – Their Role in Strategy (p.418) 82
• 5.8 Limitations of traditional controls (p.426) 83
• 5.9 Models of Performance Management (p.428) 83
• Part C: Determining Performance Measures and Setting Performance Targets (p.459) 89
• 5.10 Designing Performance Measures (p.459) 89
• 5.11 Measuring Efficiency, Effectiveness and Equity (p.462) 89
• 5.12 Designing SMART performance targets (p.463) 89
• 5.13 Characteristics of performance measures and targets (p.464) 90
• 5.14 Costs and benefits of performance management (p.467) 91
• 5.15 Performance management, power and culture (p.471) 91
• 5.16 Performance Management for Performance Improvement backflush (p.474) 91
• Module 6: Tools for Creating and Managing Value 95
• PART A: The value chain (p.532) 95
• Part B: Strategic Product Costing (p.536) 96
• 6.1 Activity-Based Costing (ABC) (p.539) 96
• 6.2 Time-Driven Activity-Based Costing (TDABC) (p.555) 98
• Part C: Strategic Revenue Management (p.565) 99
• 6.3 Major Influence on Pricing Decisions (p.565) 99
• 6.4 Pricing Strategies (p.568) 100
• Part D: Strategic Cost Management (p.572) 101
• 6.5 Increasing Efficiency without Reducing Costs: The Spare Capacity Dilemma (p.573) 101
• 6.6 Life Cycle, Target and Kaizen Costing (p.576) 101
• 6.7 End of economic life: Reverse flows in the value chain (p.589) 104
• 6.8 Activity-based management (ABM) and continuous improvement (CI) (p.592) 105
• 6.9 Social and environmental value chain analysis (p.605) 107
• Part E: Strategic Profit Management – Upstream Activities (p.607) 108
• 6.10 Supplier Management (p.608) 108
• Part F: Strategic Profit Management – Downstream Activities (p.633) 113
• 6.11 Customer Profitability Analysis (p.633) 113