Management accounting

“Management accounting involves preparing and providing timely financial and statistical information to business managers so that they can make day-to-day and short-term managerial decisions.” This article gives a good definition of the BA2 topic, management accounting.

This video highlights some of the key differences between Financial Accounting and Managerial Accounting in detail.

This will help with your understanding of Management Accounting.

“Management accountants use information of all kinds, not just financial, to lead and inform business strategy and drive sustainable success.” This article is from CIMA explaining management accounting and comparing it to financial accounting.

This article is very important for your BA2 revision.

Direct and indirect costs

“Manufacturing costs may be classified as direct costs and indirect costs on the basis of whether they can be attributed to the production of specific goods, services, departments or not.” This article neatly explains the differences between direct and indirect costs.

Overhead cost statements

The cost of goods manufactured statement displays the cost of products manufactured in a period by breaking down the costs into direct materials, direct labor, manufacturing overhead and changes in work in process. Cost of goods manufactured will ultimately be added to finished goods and be expensed as cost of goods sold.

This is a useful revision video in preparation for your understanding of costing.

Overhead absorption rates

Absorption rate is used to absorb overheads into products, this short video will help you understand this topic with as it uses an example .

This is a useful revision tool to support your BA2 revision.

Marginal absorption costing

Marginal and absorption costing is explained in detail in this video, the presenter compares the two with examples, weighing up the pros and the cons.

This is a useful revision video to support your BA2 revision.

Marginal cost pricing and full cost pricing

“Cost-based pricing strategies use the cost of producing the product as a base. They may or may not include an additional profit. Marginal-cost pricing strategies aim recover not only the cost of making the product, but enough extra to make one more of the same product.”

This is a useful article that effectively compares marginal cost pricing and full-cost pricing to support your BA2 revision.

Variance analysis

“Variance analysis is an analytical tool that managers can use to compare actual operations to budgeted estimates.” This article is helpful for your BA2 revision.

Variance Analysis is a tool of budgetary control by evaluation of performance by means of variances between budgeted amount, planned amount and the actual amount incurred/sold. Variance analysis can be carried out for both costs and revenues, this video explains how.

Cash budgets

“Most often, cash budgets are used to assess whether or not a business has a sufficient amount of cash to fulfill regular operations.” This article explains what is considered to be cash and and why you should have cash.

This will be useful in supporting your knowledge of CIMA BA2.

Standard costing

“Standard costing and the related variances is a valuable management tool. If a variance arises, management becomes aware that manufacturing costs have differed from the standard (planned, expected) costs.”

This is good material for understanding Management Accounting.

Responsible accounting

This short video effectively explains the concept of responsibility in management accounting using anotations to show the reporting system.

This will be useful in supporting your CIMA BA2 revision.

Accounts and reports

Brief overview of economies of scale, what they are and how they benefit businesses. Also includes dis-economies of scale and how are they are caused.

This video will support your CIMA BA2 studies.

Fixed and flexible costing

“Based on Capacity, two types of the budget can be prepared; they are fixed and flexible budget. Fixed Budget is a budget that remains constant, irrespective of the levels of activity while a Flexible Budget, changes with the change in the activity level.”

This article helps you understand CIMA BA2 Fixed and Flexible Budgets.

Job and batch costing

“Job costing is best suited to those situations where goods and services are produced upon receipt of a customer order, according to customer specifications, or in separate batches.”

This detailed article will support your CIMA BA2 studies.

Net present value

Explained in only 5 minutes. This video condenses down the key features of net present value using good examples to further your understanding of the topic.

“Net present value (NPV) is the present value of an investment’s expected cash inflows minus the costs of acquiring the investment.”

This article neatly explains net present value.

Time value of money

This link is helpful because it not only explains time value of money, with reference to present and future value, but also has a discussion so you can see what other students are saying on the topic.

This will be useful in supporting your knowledge of CIMA BA2.

Expected values

“The expected value is an anticipated value for a given investment. In statistics and probability analysis, the EV is calculated by multiplying each of the possible outcomes by the likelihood each outcome will occur, and summing all of those values.”

This is detailed in supporting your knowledge of CIMA BA2 Decision-Making.

Make or buy decisions

“Make-or-Buy decision (also called the outsourcing decision) is a judgment made by management whether to make a component internally or buy it from the market.”

This is a good article to help with your CIMA BA2 revision.

Breakeven analysis

“To calculate the breakeven point, divide total fixed expenses by the contribution margin. Contribution margin is sales minus all variable expenses, divided by sales.”

This will be a useful in supporting your CIMA BA2 studies, explaining breakeven point.

“You may have traveled a lot and wondered why you get more of one currency when you exchange it for another. If so, you have witnessed exchange rates in action, but do you know how they work? ”

This short video will really help you understand interest and exchange rates.