CMA Sri Lanka SL1 Strategic Management Accounting Exam study plan

Distinguish financial performance measures from non-financial ones, and classify each as lagging or leading

Compute and interpret Return on Investment (ROI), Residual Income (RI), and Economic Value Added (EVA) for a divisional scenario

Explain how the balanced scorecard links vision, objectives, measures, targets, and initiatives across four perspectives

Identify behavioural consequences of performance measurement, including gaming, short-termism, and goal congruence conflicts

Design a management control system for a decentralised organisation, specifying responsibility centres and controllability principles

Evaluate the suitability of different transfer pricing methods (market-based, cost-based, negotiated) for goal congruence and performance evaluation

Apply expected value, maximin, maximax, and minimax regret to a decision under uncertainty

Construct a payoff table and interpret the value of perfect information in a simple decision context

Map the strategic management accounting framework, including value chain analysis, strategic positioning, and cost driver analysis

Differentiate relevant and irrelevant costs for a short-term decision, and apply opportunity cost reasoning

Evaluate a make-or-buy, special order, or product-mix decision with limiting factors, showing the financial and qualitative trade-offs

Assess risk using sensitivity analysis, scenario analysis, and simulation in a capital investment appraisal

Apply the high-low method, scatter graph, and least-squares regression to separate fixed and variable cost components

Interpret the coefficient of determination (R-squared) and standard error of the estimate in cost estimation

Explain the learning curve effect and compute unit costs using the cumulative average-time model

Design an activity-based costing system for a multi-product entity, identifying cost pools, drivers, and activity rates

Prepare a flexible budget and reconcile budgeted to actual profit using marginal and absorption costing principles

Calculate and interpret material, labour, and variable overhead variances, including mix and yield variances

Compute fixed overhead variances under absorption costing (expenditure, volume, capacity, efficiency)

Distinguish planning and operational variances and explain their behavioural implications

Construct a rolling budget and a zero-based budget for a service organisation

Apply cost-plus, target costing, and lifecycle costing to determine a selling price

Evaluate pricing strategies including penetration, skimming, and price discrimination using relevant cost and demand information

Analyse the impact of transfer pricing on divisional profit and corporate profit in a vertically integrated group

Apply cost management techniques including value engineering, kaizen costing, and activity-based management

Evaluate the benefits and limitations of just-in-time (JIT) and total quality management (TQM) for cost reduction

Assess the strategic impact of cost structure choices on operating leverage and risk

Integrate strategic management accounting information into a balanced scorecard for a cost-leadership strategy

Synthesise performance measurement, risk, and decision-making concepts in an integrated case

Evaluate capital investment decisions using NPV, IRR, payback, and discounted payback with risk-adjusted discount rates

Critique a management control system for behavioural and ethical weaknesses

Formulate recommendations that address both financial and non-financial performance drivers