CAF- 05 Management Accounting Study Text - ICAP (2025-26)

📘 CAF-05 Management Accounting Study Text
📦 Publisher: ICAP

🔹 Introduction

The CAF-05 Management Accounting Study Text by ICAP is a comprehensive guide for accounting and finance students, designed to build a strong foundation in cost and management accounting. It covers modern techniques, practical applications, and decision-making tools essential for professional accountants.

🔑 Key Points

• Comprehensive coverage of management accounting concepts.

• Clear explanations of costing methods, from job costing to process costing.

• Focus on inventory valuation and inventory management.

• Detailed insights into labour costing and overhead allocation.

• Practical approach to activity-based costing.

• Standard costing and variance analysis for performance measurement.

• Decision-making tools including CVP analysis and relevant cost analysis.

• Techniques such as marginal costing, absorption costing, and target costing.

• Emphasis on cost control and cost-flow management in production.

• Structured to align with ICAP’s professional syllabus for CAF students.

📑 List of Contents:

1. Inventory valuation

2. Overheads

3. Activity based costing

4. Labour costing

5. Cost flow in production

6. Job and service costing

7. Process costing

8. Joint and by-product costing

9. Marginal costing and absorption costing

10. Standard costing

11. Variance analysis

12. Target costing

13. Cost-volume-profit (CVP) analysis

14. Relevant costs

15. Decision making techniques

16. Inventory management

🔹 Conclusion

This study text equips students with the analytical and practical tools needed for effective cost control and decision-making in business environments. It is an essential resource for ICAP CAF candidates preparing for exams and for anyone seeking mastery in management accounting concepts.