INSTITUTE OF CERTIFIED
PUBLIC ACCOUNTANTS
OF RWANDA
CPA
F2.1
MANAGEMENT
ACCOUNTING
Study Manual
2nd edition February 2020,
, © ICPAR
All copy right reserved
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in
any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written
permission of ICPAR.
Acknowledgement
We wish to officially recognize all parties who contributed to revising and updating this Manual, Our thanks are extended
to all tutors and lecturers from various training institutions who actively provided their input toward completion of this
exercise and especially the Ministry of Finance and Economic Planning (MINECOFIN) through its PFM Basket Fund
which supported financially the execution of this assignment
,INSTITUTE OF CERTIFIED PUBLIC
ACCOUNTANTS OF RWANDA
Foundation F2
F2.1 MANAGEMENT ACCOUNTING
2nd Edition February 2020
This Manual has been fully revised and updated in accordance with the current syllabus/
curriculum. It has been developed in consultation with experienced tutors and lecturers.
, Table Of Contents
Topic Title Page
1. The nature and scope of mangement accounting 8
Definition 8
Nature of management accounting 8
Scope of management accounting 9
What cost accounting provides for the organisation 10
Objects of a cost accounting system 11
The role of cost accounting in a management Information system 13
Desirable qualities of management accounting information 14
Cost classification 14
Ethical issues 21
The trainee management accountant 23
2. Cost accumulation systems 24
Introduction and definitions 24
Accountingformaterials 25
Outlineofprocedures 25
Organisationanddocumentationof purchasing 29
Receiving department 32
Goods inwards book and goods received note 33
Procedure in the accounts department 34
The storekeeper and stores issues 35
The general routine for stores issues 36
Stock levels 37
Stockturnover 41
Accounting records required for materials 41
Stocktaking 42
The pricing of material issues 45
2 F2.1 Management Accounting CPA EXAMINATION
STUDY MANUAL
PUBLIC ACCOUNTANTS
OF RWANDA
CPA
F2.1
MANAGEMENT
ACCOUNTING
Study Manual
2nd edition February 2020,
, © ICPAR
All copy right reserved
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in
any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written
permission of ICPAR.
Acknowledgement
We wish to officially recognize all parties who contributed to revising and updating this Manual, Our thanks are extended
to all tutors and lecturers from various training institutions who actively provided their input toward completion of this
exercise and especially the Ministry of Finance and Economic Planning (MINECOFIN) through its PFM Basket Fund
which supported financially the execution of this assignment
,INSTITUTE OF CERTIFIED PUBLIC
ACCOUNTANTS OF RWANDA
Foundation F2
F2.1 MANAGEMENT ACCOUNTING
2nd Edition February 2020
This Manual has been fully revised and updated in accordance with the current syllabus/
curriculum. It has been developed in consultation with experienced tutors and lecturers.
, Table Of Contents
Topic Title Page
1. The nature and scope of mangement accounting 8
Definition 8
Nature of management accounting 8
Scope of management accounting 9
What cost accounting provides for the organisation 10
Objects of a cost accounting system 11
The role of cost accounting in a management Information system 13
Desirable qualities of management accounting information 14
Cost classification 14
Ethical issues 21
The trainee management accountant 23
2. Cost accumulation systems 24
Introduction and definitions 24
Accountingformaterials 25
Outlineofprocedures 25
Organisationanddocumentationof purchasing 29
Receiving department 32
Goods inwards book and goods received note 33
Procedure in the accounts department 34
The storekeeper and stores issues 35
The general routine for stores issues 36
Stock levels 37
Stockturnover 41
Accounting records required for materials 41
Stocktaking 42
The pricing of material issues 45
2 F2.1 Management Accounting CPA EXAMINATION
STUDY MANUAL
