CMA Sri Lanka SL1 Strategic Management Accounting Exam study guide
CMA Sri Lanka SL1 Strategic Management Accounting Exam · Work through your exam, one topic at a time.
SL1 Strategic Management Accounting is the first strategic-level paper in the CMA Sri Lanka qualification, and it marks the shift from recording and reporting to advising. It is written for candidates who already understand financial accounting and cost basics and now need to sit beside a management team: framing decisions, challenging cost structures, and designing controls that reward the right behaviour. The CMA Sri Lanka SL1 Strategic Management Accounting Exam study guide has 9 sections and about 3,100 words.
01Strategic Management Accounting Framework and Cost Information for Decision Making
Strategic management accounting (SMA) shifts the focus from internal record-keeping to external, forward-looking analysis. The exam tests whether you can select relevant cost information for decisions such as special orders, make-or-buy and discontinuation, and whether you understand Shank and Govindarajan's framework: value chain analysis, strategic positioning and cost driver analysis.
353 words, about 2 min02Cost Estimation
Cost estimation builds the cost functions that feed CVP, budgeting and pricing. The exam tests your ability to choose an estimation method, compute fixed and variable components, interpret R-squared and standard error, and apply learning curve theory.
355 words, about 2 min03Cost Behaviour and Activity-Based Costing
Cost behaviour underpins break-even analysis and flexible budgeting; ABC explains how overhead is actually consumed. The exam tests classification of costs, the relevant range, the design of ABC systems and the critique of ABC.
345 words, about 2 min04Budgeting
Budgeting links plans to control. The exam tests budget purposes, alternative budgeting approaches, the behavioural consequences of budgets, and your ability to flex a budget to the actual activity level.
309 words, about 2 min05Standard Costing and Variance Analysis
Standard costing produces the variances used for control and performance evaluation. The exam tests computation from given data, interpretation of causes, and the split between planning and operating variances.
349 words, about 2 min06Pricing Decisions
Pricing is where cost information meets market strategy. The exam tests cost-plus mechanics, marginal-cost pricing for short-term decisions, target costing, pricing strategies across the product life cycle, and the influence of elasticity and competition.
346 words, about 2 min07Transfer Pricing and Cost Management
Transfer pricing sets the internal price between divisions; it must motivate both divisions while preserving overall group profit. The exam tests the general rule, the alternative methods, and how transfer prices behave with a perfect intermediate market, spare capacity or a binding constraint.
364 words, about 2 min08Performance Measurement and Management Control Systems
Performance measurement and control systems translate strategy into measures. The exam tests divisional metrics (ROI, residual income, EVA), the balanced scorecard, non-financial measures and the behavioural consequences of control.
335 words, about 2 min09Strategic Decision Making, Risk and Uncertainty
This domain combines relevant costing with decision-making under risk. The exam tests limiting-factor ranking, make-or-buy and shutdown decisions, expected value, decision trees, and the maximax, maximin and minimax-regret criteria.
344 words, about 2 min