Statement on

Management Accounting

ESSENTIAL MANAGEMENT
ACCOUNTING COMPETENCIES
FOR ALL ENTRY-LEVEL
ACCOUNTANTS
ESSENTIAL MANAGEMENT ACCOUNTING COMPETENCIES FOR ALL ENTRY-LEVEL ACCOUNTANTS

Statement
on Management
Accounting
SMAs present IMA’s position
on best practices in management
accounting. These authoritative
IMA® (Institute of Management Accountants) is a monographs cover the broad
global professional association focused exclusively on range of issues encoun-
tered in practice.
advancing the management accounting profession.

For more information, please visit www.imanet.org.

© December 2021 // Institute of Management Accountants, 10 Paragon Drive, Suite 1, Montvale, NJ 07645

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ESSENTIAL MANAGEMENT ACCOUNTING COMPETENCIES FOR ALL ENTRY-LEVEL ACCOUNTANTS

INTRODUCTION
T
his document was developed by the IMA® (Institute of Management Accountants) Management
Accounting Competency Task Force. As the accounting profession rapidly evolves, the skills
and competencies needed to succeed in it are also changing. This report is intended to provide
insight to academics, students, and practitioners on the management accounting competencies essential
for all entry-level accountants, with the goal of helping better prepare current and future accountants for
the new practice environment. •

EXECUTIVE SUMMARY
T
he role of the professional accountant is evolving. Technology is eliminating many repetitive,
routine tasks, allowing time for more strategic, value-added activities. This trend, combined with the
availability of greater sources and volumes of data alongside increased demand for internal decision
support and more sophisticated analytics, is changing the role of accounting professionals to that of strategic
business partners focused on creating organizational value. Most importantly, possessing these abilities is
crucial earlier in an accountant’s career.
All accountants, including those in entry-level positions, need to develop a deeper and expanded set of
competencies. In particular, they must integrate their technical accounting knowledge with enhanced use of
technology and data analytics. To add more value to their organizations, accountants must also understand
business operations and become adept with strategy and strategic management.
The domain of management accounting has always been an important part of an accountant’s
competencies. Management accounting, with its focus on strategy, analysis, decision making, and cross-
functional integration, is even more essential today. Nevertheless, the time constraints of accounting curricula
require accounting educators to carefully prioritize the important aspects of management accounting for their
students.
This report provides two major resources for accounting education. First, it details the management
accounting competencies that all entry-level accounting professionals should possess regardless of whether
they initially pursue a position in industry, public accounting, or elsewhere. Second, it suggests management
accounting course topics for each essential competency. Although course offerings and topics are likely
to vary across accounting programs, this report illustrates possible ways in which management accounting
topics could be addressed in two required courses (introductory management accounting and intermediate
management accounting) plus an elective advanced course for students seeking greater depth. •

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ESSENTIAL MANAGEMENT ACCOUNTING COMPETENCIES FOR ALL ENTRY-LEVEL ACCOUNTANTS

CONTRIBUTORS
This report was prepared by a core team with Ranjani Krishnan, Ph.D., ICWAI
extensive experience in developing competency and Ernest W. and Robert W. Schaberg
implementation guidance for both universities and Endowed Chair in Accounting and Information Systems,
accounting associations including the Association Michigan State University
of International Certified Professional Accountants Kenneth A. Merchant, Ph.D., CPA
(AICPA), Chartered Professional Accountants of Emeritus Deloitte & Touche LLP Chair of
Canada (CPA Canada), IMA, and the International Accountancy, University of Southern California
Accounting Education Standards Board (IAESB). The
Monte Swain, Ph.D., CMA, CPA, CGMA
initial recommendations developed by the Task Force
Deloitte Professor of Accounting, Brigham
were reviewed by academic and practice review panels,
Young University
composed of the individuals listed below, whose
assistance is gratefully acknowledged and whose Wendy Tietz, Ph.D., CMA, CSCA, CPA, CGMA, MCT
feedback was incorporated into a publicly disseminated Accounting Professor, Kent State University
Exposure Draft. We note that our recommendations Alan Webb, Ph.D., CPA, FCPA
do not necessarily reflect those of individual reviewers. Professor, University of Waterloo
Comments received on the Exposure Draft were
reviewed and are reflected in this final report. We thank
Practice Advisors
those who submitted comments for their contributions.
Rich Brady
Task Force Members Commander, Chief Executive Officer,
Raef Lawson, Ph.D., CMA, CSCA, CPA, CFA, CAE United States Military Entrance Processing
Task Force Chair Command
Executive Director, Profitability Analytics Center of
J’Maine Chubb, CMA, CSCA, CPA
Excellence
CFO, Houston Airport System
Chair, IMA Research Foundation
Mike Ciani, CMA, CPA
Loreal Jiles
Finance Director, Global Finance Talent Management,
Vice President, Research and Thought Leadership, IMA
Johnson & Johnson
Anne Sergeant, Ph.D., CMA, CSCA
Christian Cuzick, CMA
Professor of Accounting, Grand Valley State University
Vice President, Finance, Janssen Canada at
Roopa Venkatesh, Ph.D., CMA Johnson & Johnson
Director, School of Accounting,
Peter Dolan, CMA, CFM, CSCA, CPA
William C. Hockett Professor of Accounting,
Partner, Tax, KPMG
University of Nebraska at Omaha
Adam Kratzert, CMA, CPA
Susan Wolcott, Ph.D., CPA, CMA
Vice President, Group Controller, Parker Hannifin
Independent Scholar, WolcottLynch
Natalia Maslova, CPA
Academic Advisors
Technical Advisor, EY
Shane Dikoli, Ph.D., CPA (Australia)
Associate Professor of Business Administration, Russ Porter, CMA, CFM, CSCA
University of Virginia Darden School of Business CFO and Senior Vice President, Strategy, Technology,
and Analytics, IMA
Amy Fredin, Ph.D., CPA (inactive), CIA
Professor of Accounting, St. Cloud State University Jeremy Skog, Ph.D., CMA
Senior Financial Economist, Public Company
Joy Gray, Ph.D., CIA, CISA, CDPSE
Accounting Oversight Board
Senior Lecturer, Department of Accountancy,
Bentley University Gwen van Berne, CMA
Member of the Board, International Card Service
Paul Juras, Ph.D., CMA, CSCA, CPA
Chair-Elect, IMA Global Board of Directors
Vander Wolk Professor of Management Accounting
and Operational Performance, Babson College
Chair-Emeritus, IMA Global Board of Directors

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ESSENTIAL MANAGEMENT ACCOUNTING COMPETENCIES FOR ALL ENTRY-LEVEL ACCOUNTANTS

Impact of the Evolving Role of

Professional Accountants
on Essential Competencies
W
e are living in a world shaped by fast-changing technological advances, climate change,
economic volatility, geopolitical unrest, aging populations, and other trends. This rapidly
changing environment requires organizations of all types to be more agile and adaptable
in order to survive and prosper. Professional accountants—in every part of our profession—need to be
prepared to contribute to the success of their organizations, to be “value creators,” adding value for
both internal and external stakeholders.
Fulfilling this role will be challenging. The nature of the accounting profession is rapidly evolving
with cutting-edge technology and analytics eliminating some jobs while modifying others and creating
entirely new opportunities. Skill sets that were sufficient in the past are swiftly becoming obsolete, and
accountants must develop and use more complex competencies earlier in their careers.
The objective of the Management Accounting Competency Task Force was to support the increasing
relevance of management accounting education and to reflect on and recommend necessary skills for
entry-level accountants. The goal was to ensure entry-level accountants are best positioned to support
and advise organizations through their respective transformation and value-delivery journeys in the new
world. As forthcoming changes to the CPA (Certified Public Accountant) exam provide an opportune
time for universities to reexamine their accounting curricula, we recommend also reexamining what is
taught in the management accounting curriculum. Management accounting educators need to rethink
how their courses are taught and what students need to learn for successful future careers.
Necessary competencies for future practice have been described in frameworks developed by
numerous professional organizations. “Soft skills”—including ethical behavior, communication,
collaboration, change management, leadership skills, and more—are universally mentioned and covered
in competency frameworks. So are technical accounting skills such as external financial reporting,
audit, and taxation. Less uniformly described in these frameworks are the key management accounting
competencies that all entry-level accountants need to possess. Regardless of where they enter the
accounting profession, every accountant needs an understanding of key management accounting
concepts. Failure to develop major management accounting competencies will leave future professionals
ill-prepared to fulfill the emerging role of the professional accountant—to the detriment of their careers,
the organizations for which they will work, and the public interest. •

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ESSENTIAL MANAGEMENT ACCOUNTING COMPETENCIES FOR ALL ENTRY-LEVEL ACCOUNTANTS

Essential Management
Accounting Competencies
“Management accounting competencies are the foundation for professional development in the accounting
and finance profession. This baseline understanding of cost, revenue, and performance is essential in
becoming a financial strategist and catalyst with the ability to drive business innovation and value creation.”
–Rich Brady, commander, CEO, United States Military Entrance Processing Command

T
he role of the professional accountant is evolving and in turn affecting every competency area. Figure 1,
for example, illustrates how the future of accounting and finance may impact each of the six competency
domains in the IMA Management Accounting Competency Framework.

FIGURE 1: EVOLVING COMPETENCIES AND THE IMA

MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK

Future Skills for Future Skills for

Accountants: Future Skills for Accountants: Accountants:
• Greater future leadership skills earlier in career • Increasing focus on
• Increasing performance
management beyond internal reporting including
financial statements performance management
and environmental,
• Greater strategic value
social, and governance
added by accountants
performance (vs. external
• Focus on wider range of
reporting)
stakeholders
REPORTING
• Internal control for internal
• Use technology and analysis STRATEGY, PLANNING
& PERFORMANCE & CONTROL reporting
for strategy, planning, and
VISIONARY STEWARD • Use technology and analysis
performance improvement
for internal reporting
• More thorough decision
analysis early in career LEADERSHIP
CHAMPION
Future Skills for
Accountants:
Future Skills for • Greater operational
Accountants: TECHNOLOGY BUSINESS ACUMEN knowledge and application
& ANALYTICS & OPERATIONS
• Accelerating change in • Contextualized revenue,
CATALYST PARTNER
technology cost, and profitability
• Shift from past to real- management
time and forward-looking • Continuous learning
information for accountants and for
• Increasing use of data organizations
visualization PROFESSIONAL ETHICS & VALUES
GUIDE
• Work with internal teams:
• Increased governance and quality, change, and projects
ethics risks • Includes for-profits, not-for-
• Greater value added by profits, and government
accountants Future Skills for Accountants: entities
• Participate in development • Greater attention to organizational ethics • Learn and apply new
and monitoring of IT business frameworks and
• Use technology and analysis for ethics
processes for data integrity, models
ethics, and security • Use technology and analysis
for operations

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ESSENTIAL MANAGEMENT ACCOUNTING COMPETENCIES FOR ALL ENTRY-LEVEL ACCOUNTANTS

In developing its list of essential management accounting competencies, the Management Accounting
Competency Task Force adopted a forward-looking approach, focusing on the competencies entry-
level accountants will need for success in the future and not just on the competencies commonly
included in accounting education today. For example, revenue management is an area of emerging
importance. As accountants assume the role of strategic business advisors, they need to investigate
and offer recommendations on the diverse factors impacting organizational success. Creating value
requires proficiency in addressing the diverse factors that impact business success. The traditional focus
on costing is insufficient for future accountants. It is increasingly critical that accountants understand the
limitations of the financial accounting/reporting model and be capable of supporting an internal decision
support perspective of an organization.
The management accounting competencies that all entry-level accounting professionals should
possess to understand the needs and environment of business regardless of whether they initially pursue
a position in industry, public accounting, or elsewhere include:

Domain Competency

• Strategic and Tactical Planning

• Decision Analysis
Strategic Management Accounting and
Analysis • Budgeting and Forecasting

• Performance Management

• Revenue Management
Revenue, Cost, and Profitability • Managerial Costing
Management
• Profitability Management

• Management Information Systems

• Data Governance
Technology, Analytics, and Data
Management • Data Analytics

• Technology-Enabled Finance Transformation

• Personal Ethics
Professional Ethics
• Organizational Ethics

These competencies are presented in Appendix 1 along with related learning outcomes and learning
objectives. This is not a listing of all the competencies professional accountants specifically need, which
is much broader, including abilities in areas such as external financial reporting, audit, tax, and other
business disciplines. Entry-level accountants also require professional competencies in “soft skill” areas
including communication, cross-functional teamwork, self-management, and critical thinking, which are
also largely excluded as they are important throughout the business curriculum.

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ESSENTIAL MANAGEMENT ACCOUNTING COMPETENCIES FOR ALL ENTRY-LEVEL ACCOUNTANTS

When reviewing this list of essential management accounting competencies and related learning
objectives, emphasis should be placed on the competencies and objectives themselves rather than the
domains in which they are grouped. In many cases, a given competency could be classified in more than
one domain, and the Task Force placed it in the domain considered to be most appropriate. Additionally,
the competency of data analytics pervades each of the other competencies but is included here as a
separate competency to reduce redundancy in presentation.
The need to incorporate more data analytics coverage is well established. It provides both a challenge
and an opportunity to accounting programs: The challenge is to appropriately integrate data analytics
into the existing curriculum, avoiding the pitfall of merely adding stand-alone data analytics courses; the
opportunity is to reprioritize content, such as customer costing, which could be covered in the advanced
management accounting course for students who want deeper management accounting knowledge. •

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ESSENTIAL MANAGEMENT ACCOUNTING COMPETENCIES FOR ALL ENTRY-LEVEL ACCOUNTANTS

The Importance of
Management Accounting
T
he essence of management accounting is financial internal decision support. Management
accounting is not constrained by financial reporting standards; rather, it seeks to reflect and
provide deep insight into the causal relationships of resources, processes, customers, and
the actual economic conditions businesses face. The goal is to enable an organization—from top to
bottom—to use information that is meaningful, operationally and economically consistent, and which will
create value over the long term.
Management accounting should be introduced and taught as an entirely distinct subject of financial
and monetary modeling, data, and information based on causal relationships, not as an extension or
adjunct to financial accounting/reporting and its standard defined model. Financial accounting/reporting
is a specific and limited “model”; management accounting for financial internal decision support is an
equally important and essential model.
Management accounting must stand on its own as an equal accounting discipline that is essential
for companies to build robust and usable financial internal decision support models and information.
Increasing automation and artificial intelligence (AI) will gradually diminish the work of accountants in
financial accounting, reporting, and tax. Management accounting is therefore vital to the future of the
accounting profession. •

The Need for Management

Accounting Courses—
Value Added
M
anagement accounting is inherently an interdisciplinary field, overlapping in functional domain
with every other business discipline. This overlap reflects the cross-disciplinary nature of
management accounting and contributes to the ability of management accountants to add
value to their organizations. In an effort to streamline curricula, some business schools have eliminated
or reduced their number of management accounting courses, choosing to include vital management
accounting content in other courses.
For example, marketing courses might take over the practical application of microeconomics topics
such as cost behavior, breakeven analyses, and customer profitability. Operations courses might assume
responsibility for topics such as supply chain, automation, costing, and, more generally, performance
measurement and management—particularly below top-management levels. Data analytics courses, an
area of growth in many curricula, are teaching data science models, decision analyses, and predictive
analytics topics. Financial accounting and auditing courses address internal control and data governance
frameworks. Information systems courses teach data governance, data processing, privacy, AI, and
cybersecurity topics. Finance courses already teach capital budgeting, allocations of resources, and risk
management topics. Organizational behavior courses have long included topics such as leadership,

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ESSENTIAL MANAGEMENT ACCOUNTING COMPETENCIES FOR ALL ENTRY-LEVEL ACCOUNTANTS

supervision, teams, and culture. And strategy courses have always addressed the topics of strategy, tactical
planning, and critical success factors (CSFs).
What, then, is the value added of specific management accounting courses if much of the content is
covered elsewhere in a business school curriculum?

Expertise of Management Accounting Educators

Significant elements of management accounting need to be taught by management accounting
specialists. Management accounting instructors have specialized content knowledge that cannot be
easily replicated by faculty in other disciplines. The subtleties of the field are crucial to the formation of
entry-level accountants. Faculty of other disciplines may not be able to address the complex nuances of
how accounting information is produced, the quality of that information, and how to properly use that
information. They may also be unaware of potential issues in using financial accounting and reporting
information for internal decision support. If students are not taught by management accounting
specialists, they run the risk of failing to learn even what management accounting is, and they miss
valuable opportunities for rewarding careers in the area. For proper competency formation, accounting
students need to be taught by management accounting faculty.

Incomplete Coverage of Management Accounting Knowledge

Essential management accounting knowledge is not likely to be taught by faculty in other
domains. Although other business fields use management accounting information, some essential topics
are learned only in management accounting courses. This includes the development of internal decision
support models that reflect causal resource and process relationships. Examples include budgeting
theory and application, costing and allocation techniques, profitability analyses of organizational
segments (e.g., products, customers, and departments), responsibility center management, and
activity-based costing (ABC) and management. Even if these topics are included in another business
course, the importance of the topic may be inadequately stressed.

Management Accounting Content Overlap

It is well recognized that management accounting has many overlapping subject areas with other
disciplines (functional domains) in business schools. Rather than viewing the inclusion of management
accounting-related topics in the curriculum as a “division” of topics among courses, it should be
recognized that there is an “indispensable complementarity” of management accounting knowledge
to everything else business students learn. Complementarity is not to be confused with substitutability,
where the former affords or even necessitates a key slot to management accounting in the curriculum,
whereas the latter imprudently considers it to be redundant or obsolete.
Content overlap provides students with a valuable opportunity to see the “big picture” and cross-
functional nature of business. When a student encounters a topic in multiple courses from a variety
of perspectives with different purposes, the topic will be learned at a deeper level. This overlap is
beneficial, but it is not sufficient for disciplinary depth. The key to success for student learning is that
each discipline presents the topic with its unique focus. For example, it is necessary for marketing to
discuss pricing, and pricing will inevitably lead to the topic of costing. But that exposure does not make
“students of marketing” the same as “students of management accounting.” The latter may understand
the importance of cost distortions, viewed through multiple lenses including ABC rather than solely
through the narrower lens of volume-based cost allocations (if that level of detail is even addressed in
the marketing or operations management course). The level of costing detail presented in a marketing
course will differ from that of a management accounting course—in the same way that pricing in a

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ESSENTIAL MANAGEMENT ACCOUNTING COMPETENCIES FOR ALL ENTRY-LEVEL ACCOUNTANTS

management accounting course is less comprehensive than it is in a marketing course. Accounting

and marketing students require different levels of knowledge regarding the preparation and use of
costing information. Students gain a deeper understanding of a topic when they learn it from a variety
of perspectives. This is why businesses use cross-functional teams—no two disciplines understand or
approach a problem from the same perspective.
There is considerable overlap across business disciplines in the area of data analytics. Some
accountants have argued that management accounting should be taught in a data analytics course,
but the same issues of faculty expertise, content depth, and focus arise as previously discussed.
Data analytics is a tool for use across business disciplines. It should be integrated/applied to topics
in various courses, such as personnel analyses in human resources courses, business performance
analysis in management accounting courses, customer preference and market demand questions in
marketing courses, horizon scanning and competitive responsiveness in strategy courses, and so on. It
is appropriate to introduce analysis examples from various business disciplines as students learn data
analysis techniques. But the discipline knowledge, when it is learned only in a data analytics course,
is inadequate for the in-depth ability needed by majors in each business discipline. In particular,
accounting students will not adequately learn management accounting topics in a data analytics course.

Management Accounting Course Content

As the accounting profession evolves, accountants must be prepared to add value to their organizations
earlier in their careers. An in-depth management accounting competency is essential to adding
value, and accountants—regardless of their career path—must be adequately prepared in the field
of management accounting. It would be a disservice to future accountants, their organizations, and
the public interest to disregard and eliminate the essential learning of management accounting that
accounting graduates need.
Accounting programs must ensure that management accounting courses comprehensively
impart the key value-adding management accounting competencies, which means focusing on
much more than costing techniques. The field of management accounting has evolved tremendously
in the last several decades. Early in their careers, accountants require competencies in areas such
as strategy, revenue and profitability (not just costing) management, transformation of the finance
function, professional ethics, and data analytics. An overemphasis on the instruction of costing methods
will limit students’ learning of other important topics and prevent students from integrating essential
management accounting competencies with those obtained in other courses. •

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ESSENTIAL MANAGEMENT ACCOUNTING COMPETENCIES FOR ALL ENTRY-LEVEL ACCOUNTANTS

Illustrative Management
Accounting Course Curriculum
I
n order to adequately impart the essential management accounting competencies identified in this
report, we believe that it is necessary that all accounting students take two management accounting
courses: one at the introductory level and an additional one at the intermediate level. An advanced
management accounting course elective would be desirable for accounting students planning to pursue
a career outside of external audit or tax, or planning to sit for the CPA Business Analysis and Reporting
(BAR) exam.
In Appendix 2, we offer illustrative content for the introductory, intermediate, and elective
management accounting courses to comprehensively address the learning outcomes and objectives
contained in Appendix 1. Some competencies can be introduced and mastered in a single course. Most
competencies require exposure over multiple courses for students to achieve a sufficiently high level of
mastery. In such instances, the content is suggested for inclusion in more than one course. In general,
the competency would be introduced in the lower-level course and then reinforced and mastered in the
higher-level course. In some cases, the introduction to a topic may have occurred in a course other than
management accounting. Ultimately, the stated learning outcomes reflect the expected level of mastery
upon completion of the most advanced course listed.
While some schools offer a “cost accounting” course as the intermediate management accounting
course, the Task Force points out that this title does not reflect the needed content of a management
accounting course for today’s accounting students. As indicated by the breadth of recommended
competencies in the intermediate course shown in Appendix 2, costing is a subset of managerial
accounting competencies and does not encompass the broad range of management accounting
competencies needed by professional accountants for the practice environment of the future.
Accordingly, we suggest updating the name, content, or both of such courses to align with the
recommendations contained in this report. •

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ESSENTIAL MANAGEMENT ACCOUNTING COMPETENCIES FOR ALL ENTRY-LEVEL ACCOUNTANTS

APPENDIX 1: ESSENTIAL MANAGEMENT ACCOUNTING

COMPETENCIES, LEARNING OUTCOMES, AND LEARNING
OBJECTIVES FOR ALL ENTRY-LEVEL ACCOUNTANTS

STRATEGIC MANAGEMENT ACCOUNTING AND ANALYSIS

Strategic and Tactical Planning

Learning Outcomes Learning Objectives

• Assess the alignment of strategies with the organizational mission, vision, and
values

• Examine the interdependencies among the operational, strategic, tactical, and

Evaluating strategic management plans
contingency plans

• Analyze the environmental, social, and governance (ESG) impact of operational,

strategic, tactical, and contingency plans

• Explain why continuous improvement is necessary for sustainable organizations

Applying continuous improvement
strategies to increase organization value • Identify appropriate change management strategies

Evaluating the strategic importance of a • Differentiate between the purposes of short-term and long-term business and
short-term vs. long-term perspective strategic decisions

Decision Analysis
Learning Outcomes Learning Objectives

Identifying problems for decision making • Recognize situations that require decision-making skills

• Gather relevant quantitative and qualitative information for analysis

• Perform relevant analyses

Analyzing relevant information • Enhance analyses with relevant data analytics

• Evaluate key assumptions and uncertainties

• Apply professional ethics and values

• Formulate decisions using evidence-based judgment

Making decisions
• Communicate recommendations

Monitoring past decisions • Gather data to evaluate the results of past decisions

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ESSENTIAL MANAGEMENT ACCOUNTING COMPETENCIES FOR ALL ENTRY-LEVEL ACCOUNTANTS

Budgeting and Forecasting

Learning Outcomes Learning Objectives

• Critique the use of budgets and forecasts to facilitate communication, coordination,

Evaluating the relationship of budgets and performance management, and alignment with organizational strategies
forecasts to strategic planning
• Prepare various types of investment and operating budgets and forecasts

Applying technology and data analytics in • Use data analytics and data visualization tools to create and enhance budgets and
budgeting and forecasting forecasts

Performance Management

Learning Outcomes Learning Objectives

• Measure and control strategic implementation using relevant tools and techniques

Aligning performance management • Evaluate the alignment of performance measures with intended financial
systems to support organizational strategy and nonfinancial outcomes
and operations
• Compare and contrast the performance information needed for external
reporting and internal decision making

• Explain the issues associated with using financial accounting information

for measuring performance
Using performance management systems
• Analyze performance by comparing actual financial and nonfinancial results
to sustain and improve organizational
to relevant benchmarks
success
• Use performance measurement results to recommend improvements to strategies
and/or operations

Applying technology and analytics in • Use data analytics and data visualization tools to enhance performance
performance management management

REVENUE, COST, AND PROFITABILITY MANAGEMENT

Revenue Management

Learning Outcomes Learning Objectives

• Describe the organization’s revenue-generating models

Evaluating revenue-generating models and
practices • Describe organizational revenue management practices, including revenue levers
and resources

Identifying opportunities for management • Use data analytics and data visualization tools to enhance revenue management
accountants to enhance revenue
• Apply management accounting tools to improve revenue management
management

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ESSENTIAL MANAGEMENT ACCOUNTING COMPETENCIES FOR ALL ENTRY-LEVEL ACCOUNTANTS

Managerial Costing

Learning Outcomes Learning Objectives

• Assess the reasonableness of cost behavior assumptions for specific costs

Evaluating cost behavior
• Critique the usefulness and reasonableness of a linear cost function for specific costs

• Compare cost accounting practices for external financial accounting with

managerial costing for internal decision support

Applying managerial costing methods • Contrast the uses of traditional cost accounting methods

• Explore the accounting system requirements and implications of managerial

costing systems for internal decision support

Evaluating relevant costs for decision • Assess which costs are relevant for a given decision
making

Identifying how management accountants • Describe organizational methods for improving cost management efficiency
can improve cost information for internal
decision support

Applying technology and analytics in cost • Use data analytics and data visualization tools to enhance cost management
management

Profitability Management

Learning Outcomes Learning Objectives

• Analyze profit behavior in relation to the costs of various levels of operating activity
Evaluating profitability using relevant
• Consider appropriate nonfinancial information and qualitative factors when
financial and nonfinancial information
evaluating profitability

• Assess relevant information for a given decision

Evaluating relevant information for decision
• Analyze business segments for their contribution to organizational success from
making and performance management
various perspectives

Applying technology and analytics in • Use data analytics and data visualization tools to enhance profitability
profitability management management

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ESSENTIAL MANAGEMENT ACCOUNTING COMPETENCIES FOR ALL ENTRY-LEVEL ACCOUNTANTS

TECHNOLOGY, ANALYTICS, AND DATA MANAGEMENT

Management Information Systems

Learning Outcomes Learning Objectives

• Explain how information systems add value to an organization

Recognizing the value of information
• Describe alternative types of data and data sources
systems for competitive advantage
• Evaluate the quality of data generated by information systems

Data Governance
Learning Outcomes Learning Objectives

• Explain how data governance enhances organizational value

• Describe commonly used frameworks and practices for data governance, control,
Explaining data policies and procedures
and risk management

• Describe data through the various stages of the data life cycle

Data Analytics
Learning Outcomes Learning Objectives

• Use digital technology to perform different types of analytics

• Implement data science models to support operational and financial decisions

Applying data analytics
• Apply analytics to proactively identify and avoid decision bias

• Prepare appropriate visualizations to facilitate and communicate data analysis

Technology-Enabled Finance Transformation

Learning Outcomes Learning Objectives

• Explain the role of technology-enabled finance transformation initiatives in

enabling strategic execution

Applying technology-enabled finance • Identify opportunities for management accountants to work with data scientists
transformation to support organizational and/or information technology specialists to generate financial and nonfinancial
strategy information from a variety of data sources

• Collaborate with information technology teams to assess and improve business

processes

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ESSENTIAL MANAGEMENT ACCOUNTING COMPETENCIES FOR ALL ENTRY-LEVEL ACCOUNTANTS

PROFESSIONAL ETHICS

Personal Ethics

Learning Outcomes Learning Objectives

• Explain the importance of ethical behavior to the value added by management

accountants
Adopting an ethical mindset
• Exhibit a professional ethical mindset

• Resolve potential conflicts among diverse ethical expectations

Acting ethically
• Engage in self-reflection and continuous improvement of ethical behavior

Organizational Ethics
Learning Outcomes Learning Objectives

• Recommend improvements to the organization’s systems and controls over ethical

standards and compliance
Encouraging an ethical organizational • Collaborate with others to foster, clarify, and continuously improve the
culture organizational ethical culture

• Explain how controls prevent and detect fraudulent and unethical activities and errors

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ESSENTIAL MANAGEMENT ACCOUNTING COMPETENCIES FOR ALL ENTRY-LEVEL ACCOUNTANTS

APPENDIX 2: EXAMPLE MANAGEMENT ACCOUNTING TOPICS BY COURSE

The following is a listing of candidate topics for possible inclusion in management accounting courses
that directly address the competencies listed in Appendix 1.

STRATEGIC MANAGEMENT ACCOUNTING AND ANALYSIS

Strategic and Tactical Planning

Learning Learning Introductory Course Intermediate Course Advanced Course
Outcomes Objectives Topics (Required) Topics (Required) Topics (Elective)

Assess the alignment Mission, vision, and values Organizational culture;

of strategies with the strengths, weaknesses,
organizational mission, opportunities, and threats
vision, and values analysis; Porter’s Five
Forces; political, economic,
sociological, technological,
legal, and environmental
analysis

Examine the Operational, strategic, Operational, strategic, Strategy and management

interdependencies among tactical, and contingency tactical, and contingency control systems; formal
the operational, strategic, plans plans; value chain analysis; and informal systems;
tactical, and contingency supply chain analysis; CSFs effectiveness and design
plans of management control
Evaluating various types systems
of strategic management
plans Analyze the ESG impact Environmental concerns Environmental and
of operational, strategic, (e.g., impact on climate social performance and
tactical, and contingency change, depletion of the balanced scorecard;
plans physical resources, waste managing environmental
management, risks from and sustainability costs
climate change); social
concerns (e.g., diversity,
human rights, consumer
protection, animal rights);
governance concerns
(e.g., board of directors,
management structure,
executive vs. employee
compensation); supply
chain ESG considerations

18
ESSENTIAL MANAGEMENT ACCOUNTING COMPETENCIES FOR ALL ENTRY-LEVEL ACCOUNTANTS

Learning Learning Introductory Course Intermediate Course Advanced Course

Outcomes Objectives Topics (Required) Topics (Required) Topics (Elective)

Explain why continuous Continuous improvement; Continuous improvement;

improvement is sustainable organization sustainable organization
necessary for sustainable
organizations

Identify appropriate change Change management; Change management

management strategies barriers to change process (e.g., purpose
and change needed,
leadership and teamwork,
Applying a continuous communication, training,
improvement mindset to barrier identification and
increase organization value removal, goals/milestones,
project management);
tools and techniques for
continuous improvement
(e.g., value engineering,
kaizen, Lean management,
life-cycle costing, Theory of
Constraints, benchmarking,
cross-functional
improvement, etc.)

Differentiate between the Short-term and long-term Short-term and long-term Short-term and long-term
purposes of short-term and decisions decisions; strategy maps; decisions; strategy maps;
Evaluating the strategic long-term business and balanced scorecard; short- balanced scorecard; short-
importance of short-term strategic decisions term profitability vs. long- term profitability vs. long-
vs. long-term perspectives term growth; expectations term growth; expectations
of investors and other of investors and other
stakeholders stakeholders

Decision Analysis
Learning Learning Introductory Course Intermediate Course Advanced Course
Outcomes Objectives Topics (Required) Topics (Required) Topics (Elective)

Recognize situations that Well-defined vs. open- Well-defined vs. open- Well-defined vs. open-
Identifying problems for require decision-making ended problems, ended problems, ended problems,
decision making skills alternatives alternatives, decision alternatives, decision
maker(s), stakeholders maker(s), stakeholders

19
ESSENTIAL MANAGEMENT ACCOUNTING COMPETENCIES FOR ALL ENTRY-LEVEL ACCOUNTANTS

Learning Learning Introductory Course Intermediate Course Advanced Course

Outcomes Objectives Topics (Required) Topics (Required) Topics (Elective)

Gather relevant Relevant quantitative and Availability and quality of Availability and quality of
quantitative and qualitative qualitative information relevant quantitative and relevant quantitative and
information for analysis qualitative information; qualitative information;
ESG factors; risk ESG factors; risk
management factors management factors

Perform relevant analyses Relevant analyses (e.g., Relevant analyses (e.g., Relevant analyses (e.g.,
costs and benefits, pros costs and benefits, pros and costs and benefits, pros and
and cons) cons, regression analysis, cons, regression analysis,
correlations, trends, net correlations, trends, net
present value, sensitivity present value, sensitivity
analysis, scenario analysis, analysis, scenario analysis,
what-if analysis) what-if analysis)

Analyzing relevant Enhance analyses with (See Technology, Analytics, (See Technology, Analytics, (See Technology, Analytics,
information relevant data analytics and Data Management) and Data Management) and Data Management)

Evaluate key assumptions Assumptions (e.g., cost Assumptions (e.g., cost Types of bias, including
and uncertainties behavior) behavior); conditional implicit bias; cross-
thinking (if-then); critical validation using prediction
uncertainties; risks; accuracy or maximum
limitations; trade-offs; likelihood
potential bias

Apply professional ethics Ethical and unethical Ethical behavior of Ethical behavior of
and values business practices management accountants; management accountants;
professional codes of professional codes of
conduct; ethical and conduct; ethical and
unethical business unethical business
practices practices

Formulate decisions using Apply decision criteria (e.g., Summarize results of Summarize results of
evidence-based judgment benefit greater than cost) analyses; apply decision analyses, key issues, and
criteria trade-offs; identify and
apply decision criteria,
risk tolerance
Making decisions
Communicate Stakeholder information Stakeholder information Persuasive data-driven
recommendations needs needs; communication to written analysis and reports
diverse audiences to various audiences for
various financial and
operational decisions

Gather data to evaluate the Decision outcomes; Need for decision

Monitoring past decisions results of past decisions variance analysis; monitoring; monitoring
performance measures methods and measures

20
ESSENTIAL MANAGEMENT ACCOUNTING COMPETENCIES FOR ALL ENTRY-LEVEL ACCOUNTANTS

Budgeting and Forecasting

Learning Learning Introductory Course Intermediate Course Advanced Course
Outcomes Objectives Topics (Required) Topics (Required) Topics (Elective)

Critique the use of Budgets (time-period Rolling budgets;

budgets and forecasts to budgets, etc.) related life-cycle costing;
facilitate communication, to forecasts and to participative budgeting;
coordination, performance organization strategy promoting coordination
management, and and communication;
alignment with motivating managers and
organizational strategies other employees using
budgets; challenges in
administering different
Evaluating the relationship kinds of budgets
of budgets and forecasts to
strategic planning Prepare various types of Master budget; flexible Master budget; flexible Strategic considerations
investment and operating budget budget; rolling budget; in capital budgeting (e.g.,
budgets and forecasts short-term and long-term investment in research and
forecasts; capital budget; development, customer
payback period; internal value, capital budgeting)
rate of return; net present
value; time value of
money; tax effects; human
factors

Use data analytics and data (See Technology, Analytics, (See Technology, Analytics, (See Technology, Analytics,
Applying data analytics in visualization tools to create and Data Management) and Data Management) and Data Management)
budgeting and forecasting and enhance budgets and
forecasts

Performance Management
Learning Learning Introductory Course Intermediate Course Advanced Course
Outcomes Objectives Topics (Required) Topics (Required) Topics (Elective)

Measure and control Budgets and variances; Budgets and variances; Management control
strategic implementation responsibility accounting responsibility accounting; systems; Simons’s levers
using relevant tools and management control of control framework;
techniques systems; Simons’s levers of distinguishing the
control framework performance of managers
from their subunits
Aligning performance
management systems to
Evaluate the alignment Financial and nonfinancial Financial and nonfinancial Financial and nonfinancial
support organizational
of performance measures performance measures/ performance measures/ performance measures/
strategy
with intended financial and metrics metrics; CSFs; key metrics, CSFs, KPIs, SMART
nonfinancial outcomes performance indicators criteria
(KPIs); specific,
measurable, achievable,
relevant, and time-bound
(SMART) criteria

21
ESSENTIAL MANAGEMENT ACCOUNTING COMPETENCIES FOR ALL ENTRY-LEVEL ACCOUNTANTS

Learning Learning Introductory Course Intermediate Course Advanced Course

Outcomes Objectives Topics (Required) Topics (Required) Topics (Elective)

Compare and contrast the Objectives of external Objectives of external Objectives of external
performance information reporting and the reporting and the reporting and the
needed for external information needs of information needs of information needs of
reporting and internal external stakeholders; external stakeholders; external stakeholders;
decision making objectives of internal objectives of internal objectives of internal
reporting and the reporting and the reporting and the
information needs of information needs of information needs of
internal stakeholders internal stakeholders internal stakeholders;
information needs of for-
profit, not-for-profit, and
governmental entities

Explain the issues Historical cost accounting; Historical cost accounting; Transfer pricing,
associated with using cost allocation; principles cost allocation; segment decentralization,
financial accounting of return on investment reporting; responsibility management control
information for measuring (ROI); residual income accounting; ROI, RI, and systems and multinational
performance (RI), and Economic Value EVA considerations for
Added® (EVA) determining transfer
prices; guidelines for
transfer pricing situations;
ROI, RI, and EVA

Using performance
Analyze performance by Benchmarks; variance External and internal
management systems
comparing actual financial analysis benchmarks; variance
to sustain and improve
and nonfinancial results to analysis; financial and
organizational success
relevant benchmarks nonfinancial results;
diagnostic control systems;
gap analysis

Use performance Interpret results of Use results of performance

measurement results to performance measures/ measures/metrics to
recommend improvements metrics; gap analysis; recommend improvements
to strategies and/or external and internal to strategies and/or
operations factors operations; value stream
maps

Use data analytics and (See Technology, Analytics, (See Technology, Analytics, (See Technology, Analytics,
Applying technology and
data visualization tools and Data Management) and Data Management) and Data Management)
analytics in performance
to enhance performance
management
management

22
ESSENTIAL MANAGEMENT ACCOUNTING COMPETENCIES FOR ALL ENTRY-LEVEL ACCOUNTANTS

REVENUE, COST, AND PROFITABILITY MANAGEMENT

Revevnue Management
Learning Learning Introductory Course Intermediate Course Advanced Course
Outcomes Objectives Topics (Required) Topics (Required) Topics (Elective)

Describe the organization’s Revenue streams (e.g., sale Revenue streams (e.g., sale
revenue-generating of goods, sale of services, of goods, sale of services,
models licenses, commissions, licenses, commissions,
rents, interest) rents, interest);
organizational skills and
abilities; customer needs;
value creation and delivery;
customer payment cycle;
industry revenue model
Evaluating revenue-
characteristics
generating models and
practices
Describe organizational Pricing basis Revenue levers (pricing
revenue management basis, inventory allocation,
practices, including product configuration, and
revenue levers and management of variability
resources across time); value chain
analysis; supply chain
analysis; resources
available for revenue
management

Use data analytics and (See Technology, Analytics, (See Technology, Analytics, (See Technology, Analytics,
data visualization tools and Data Management) and Data Management) and Data Management)
to enhance revenue
management

Apply management Financial sales data; Financial sales data; Financial sales data;
accounting tools to revenue variance analysis; nonfinancial customer nonfinancial customer
improve revenue accounts receivable and market data; revenue and market data; revenue
Identifying opportunities management turnover variance analysis; accounts variance analysis; accounts
for management receivable turnover; receivable turnover;
accountants to enhance customer profitability customer profitability
revenue management analysis; activity-based analysis; value pricing;
management capacity analysis; activity-
based management;
analysis of revenue
behavior and causality;
revenue driver analysis;
scenario planning; time
series/trend analysis

23
ESSENTIAL MANAGEMENT ACCOUNTING COMPETENCIES FOR ALL ENTRY-LEVEL ACCOUNTANTS

Managerial Costing
Learning Learning Introductory Course Intermediate Course Advanced Course
Outcomes Objectives Topics (Required) Topics (Required) Topics (Elective)

Assess the reasonableness Resource capacity; cost Cost behavior assumptions;

of cost behavior behavior assumptions; fixed costs; variable
assumptions for specific fixed costs; variable costs; costs; product costs;
costs product costs; period costs; period costs; traceability;
traceability; direct costs; direct costs; indirect
indirect costs costs; conversion costs;
overhead costs; mixed or
semivariable costs; step
Evaluating cost behavior costs; incremental costs;
economies of scale

Critique the usefulness and Linear cost function, cost

reasonableness of a linear pool, cost driver, relevant
cost function for specific range; changes in the
costs internal and external
business environment

Compare costing practices Cost accounting: standards Financial accounting: Target costing, cost of
for financial accounting for recording costs as standards for recording quality, “should” costing
with those for internal assets and expenses (e.g., costs as assets and
decision support inventory and cost of goods expenses (e.g., inventory
sold); and cost of goods sold);
Managerial costing: IMA Managerial costing: IMA
Conceptual Framework Conceptual Framework
for Managerial Costing, for Managerial Costing,
causality principle, relevant causality principle, relevant
costs for a given purpose costs for a given purpose
Applying costing methods
(cost management, (cost management,
performance management, performance management,
decision making, etc.) decision making, etc.)

Contrast the uses of Allocation of costs (cost pool, Allocation of costs (cost pool, Process costing; support
traditional cost accounting allocation base, over-/under- allocation base, over-/under- cost allocation (direct
methods applied cost); absorption applied cost); absorption method, step-down
costing; standard costing; costing; standard costing; method, reciprocal method)
job costing job costing; actual and
normal costing

24
ESSENTIAL MANAGEMENT ACCOUNTING COMPETENCIES FOR ALL ENTRY-LEVEL ACCOUNTANTS

Learning Learning Introductory Course Intermediate Course Advanced Course

Outcomes Objectives Topics (Required) Topics (Required) Topics (Elective)

Explore the accounting Direct costing; variable Accounting system Accounting system
system requirements and costing; ABC requirements for different requirements for different
implications of managerial costing methods; costing methods;
costing systems for internal operational implications of operational implications of
decision support different costing methods; different costing methods;
direct costing; variable throughput costing;
costing; ABC, time-driven predictive accounting;
ABC resource consumption
accounting; event-driven
ABC

Assess which costs are Product and service cost; Product and service cost;
relevant for a given marginal cost opportunity cost; sunk
decision cost; marginal cost;
Evaluating relevant costs
discretionary cost; cost
for decision making
reduction from economies
of scale; customer cost-to-
serve

Describe organizational Production efficiency Accurate cost planning;

methods for improving cost (e.g., spoilage, rework, production efficiency
management efficiency and scrap); resource and (e.g., spoilage, rework,
capacity management; and scrap); cost control;
Identifying how operations and logistics business process controls;
management accountants management; Just-in-Time; economic order quantity;
can improve cost Lean accounting; kaizen critical performance
information for internal variables; diagnostic
decision support controls; resource and
capacity management;
operations and logistics
management; Just-in-Time;
Lean accounting; kaizen

Applying technology Use data analytics and (See Technology, Analytics, (See Technology, Analytics, (See Technology, Analytics,
and analytics in cost data visualization tools to and Data Management) and Data Management) and Data Management)
management enhance cost management

25
ESSENTIAL MANAGEMENT ACCOUNTING COMPETENCIES FOR ALL ENTRY-LEVEL ACCOUNTANTS

Profitability Management
Learning Learning Introductory Course Intermediate Course Advanced Course
Outcomes Objectives Topics (Required) Topics (Required) Topics (Elective)

Analyze profit behavior Cost-volume-profit (CVP) CVP analysis; breakeven

in relation to the costs of analysis; breakeven point; point; margin of safety;
various levels of operating margin of safety; degree of degree of operating
activity operating leverage leverage

Evaluating profitability
Consider appropriate Qualitative factors (e.g.,
using relevant financial
nonfinancial information ESG, organizational values
and nonfinancial
and qualitative factors and culture, long-term vs.
information
when evaluating short-term perspective,
profitability brand reputation,
employee morale, product
quality, time constraints,
constrained resources)

Assess relevant information Incremental revenue; Causal analysis;

for a given decision relevant costs incremental revenue;
relevant costs (see Cost
Management); decision
quality (e.g., business risk,
information timeliness,
reasonableness of
assumptions, strategic
alignment, sensitivity
analysis)
Evaluating relevant
information for decision Common types of
making and performance decisions: special order
management decisions; keep or drop
decisions; insource or
outsource decisions;
product mix decisions;
product emphasis decisions

Analyze business segments Responsibility accounting; Responsibility accounting; Transfer pricing

for their contribution to responsibility centers responsibility centers
organizational success from
various perspectives

Use data analytics and (See Technology, Analytics, (See Technology, Analytics, (See Technology, Analytics,
Applying technology and data visualization tools and Data Management) and Data Management) and Data Management)
analytics in profitability to enhance profitability
management management

26
ESSENTIAL MANAGEMENT ACCOUNTING COMPETENCIES FOR ALL ENTRY-LEVEL ACCOUNTANTS

TECHNOLOGY, ANALYTICS, AND DATA MANAGEMENT

Management Information Systems

Learning Learning Introductory Course Intermediate Course Advanced Course
Outcomes Objectives Topics (Required) Topics (Required) Topics (Elective)

Explain how information Information for decision Information for decision Business intelligence;
systems add value to an making, planning, and making, planning, and business process
organization performance management performance management performance and controls
(organization, segments, (organization, segments,
functions, individuals, etc.) functions, individuals,
etc.); information users and
stakeholders (internal and
external); data conversion
into information;
accounting information
systems

Describe alternative types Data sources (e.g., Data types (e.g., monetary, Data types (e.g., monetary,
of data and data sources transaction processing, nonmonetary; numeric, nonmonetary; numeric,
accounting, production) nonnumeric; continuous, nonnumeric; continuous,
categorical; text, survey, categorical; text, survey,
audio, video, images, audio, video, images,
click-through, biometric, click-through, biometric,
etc.); data sources (e.g., etc.); data sources (e.g.,
Recognizing the value of
transaction processing, transaction processing,
information systems for
accounting, production, accounting, production,
competitive advantage
marketing, customer marketing, customer
service, human resources, service, human resources,
decision support, strategic decision support, strategic
management, web servers, management, web servers,
security systems, satellites, security systems, satellites,
etc.) etc.)

Evaluate the quality of data Data relevance; data Data quality criteria Data quality criteria
generated by information usefulness (e.g., accuracy, (e.g., accuracy,
systems reliability, relevance, reliability, relevance,
usefulness, consistency, usefulness, consistency,
standardization, standardization,
completeness, timeliness, completeness, timeliness,
unbiased, accessibility, unbiased, accessibility,
etc.), internal controls; etc.); internal controls;
business process controls; business process controls;
data extraction, cleaning, data extraction, cleaning,
restructuring restructuring

27
ESSENTIAL MANAGEMENT ACCOUNTING COMPETENCIES FOR ALL ENTRY-LEVEL ACCOUNTANTS

Data Governance
Learning Learning Introductory Course Intermediate Course Advanced Course
Outcomes Objectives Topics (Required) Topics (Required) Topics (Elective)

Explain how data Segregation of duties, Categories of internal Data governance,

governance enhances transaction and activity controls: segregation of organizational value from
organizational value reviews duties, physical controls, data governance (e.g.,
reconciliations, policies and data processes; controls;
procedures, transaction and regulatory, legal, and
activity reviews organizational compliance;
systems reliability and
security; data quality);
categories of internal
controls: segregation of
duties, physical controls,
reconciliations, policies and
procedures, transaction and
activity reviews, information
processing controls;
customer management;
vendor/supplier
management; business
continuity planning

Describe commonly used Risk mitigation Risk mitigation; Frameworks for data
frameworks and practices cybersecurity governance, control, and
Explaining data policies
for data governance, risk management (e.g.,
and procedures
control, and risk Committee of Sponsoring
management Organizations of the
Treadway Commission,
Control Objectives for
Information and Related
Technology, Information
Technology Infrastructure
Library); cybersecurity;
risk mitigation; internal
audit of controls over
data; processes for system
changes and maintenance;
data process tools and
algorithms (e.g., data
extraction, cleaning, and
restructuring)

Describe data through the Record retention Stages in the data life Stages in the data life
various stages of the data cycle; data capture to data cycle; data capture to data
life cycle purging; data conversion purging; data conversion
to information; system to information; system
changes and maintenance changes and maintenance

28
ESSENTIAL MANAGEMENT ACCOUNTING COMPETENCIES FOR ALL ENTRY-LEVEL ACCOUNTANTS

Data Analytics
Learning Learning Introductory Course Intermediate Course Advanced Course
Outcomes Objectives Topics (Required) Topics (Required) Topics (Elective)

Use digital technology to Descriptive analytics Descriptive analytics; Analytical maturity model
perform different types of diagnostic analytics (descriptive analytics,
analytics diagnostic analytics,
predictive analytics, and
prescriptive analytics)

Implement data science Data relationships Information modeling; Information modeling;

models to support data model inputs; logical AI, relevant algorithms;
operational and financial relationships; cause-and- data relationships; data
decisions effect relationships model inputs; data
model evaluation tools
(e.g., magnitude of
the likelihood values,
feature variables, false
positive rate, confusion
matrix classifications,
payoff matrix); logical
relationships; cause-
and-effect relationships;
efficiency and effectiveness
Applying data analytics of operating activities

Apply analytics to Types of decision bias Types of decision bias

proactively identify and (including implicit bias);
avoid decision bias cross-validation using
prediction accuracy or
maximum likelihood;
holdout samples using full
and pruned decision tree

Prepare appropriate Descriptive statistics Data analysis Data analysis

visualizations to facilitate communication; communication;
and communicate data dashboards; charts, graphs, dashboards; charts, graphs,
analysis tables, histograms, and tables, histograms, and
heat maps; scatterplots; heat maps; scatterplots;
misleading visuals; misleading visuals;
descriptive statistics; descriptive statistics;
time series; correlations, time series; correlations,
patterns, trends, and patterns, trends, and
anomalies; visualization anomalies; visualization
tools tools

29
ESSENTIAL MANAGEMENT ACCOUNTING COMPETENCIES FOR ALL ENTRY-LEVEL ACCOUNTANTS

Technology-Enabled Finance Transformation

Learning Learning Introductory Course Intermediate Course Advanced Course
Outcomes Objectives Topics (Required) Topics (Required) Topics (Elective)

Explain the role of Business process Business process automation

technology-enabled automation (e.g., robotic (e.g., RPA, Alteryx, Microsoft
finance transformation process automation Excel VBA macros); process
initiatives in enabling (RPA), Alteryx, Microsoft efficiency; business
strategic execution Excel Visual Basic for partnering; change
Applications (VBA) macros) management; continuous
improvement; value-
added skill development;
analytics-based forecasting;
integration of information
systems; quality of data and
information; model building

Identify opportunities for Financial and nonfinancial Terminology and

management accountants information for a given concepts for working
to work with data scientists purpose (e.g., strategies, with data scientists and/
and/or information operations, tactics, or information specialists
technology specialists to internal processes, (e.g., math and statistics,
generate financial and risks, opportunities, inference, computer
nonfinancial information external environment, science and data skills, data
from a variety of data performance management, algorithms and models,
Applying technology-
sources supply chain, customer decision trees, pruning,
enabled finance
relationship, external data mining)
transformation to support
reporting, internal
organizational strategy
reporting, data analytics,
AI, etc.), data availability
and quality

Collaborate with Cross-functional Cross-functional

information technology collaboration collaboration; partnering
teams to assess and between management
improve business accounting and IT;
processes strategic and operational
requirements;
hardware and software
configurations;
development, testing,
implementation,
documentation, and
assessment; systems
development life cycle
(SDLC) approaches
(waterfall model, Agile
approaches such as the
Scrum Framework)

30
ESSENTIAL MANAGEMENT ACCOUNTING COMPETENCIES FOR ALL ENTRY-LEVEL ACCOUNTANTS

PROFESSIONAL ETHICS

Personal Ethics
Learning Learning Introductory Course Intermediate Course Advanced Course
Outcomes Objectives Topics (Required) Topics (Required) Topics (Elective)

Explain the importance Ethical behavior of Ethical behavior of Ethical behavior of

of ethical behavior to management accountants; management accountants; management accountants;
the value added by professional codes of professional codes of professional codes of
management accountants conduct conduct conduct
Adopting an ethical
mindset Exhibit a professional Independent frame of Independent frame of Independent frame of
ethical mindset mind; competence; mind; competence; mind; competence;
confidentiality; integrity; confidentiality; integrity; confidentiality; integrity;
credibility; skepticism credibility; skepticism credibility; skepticism

Resolve potential conflicts Whistleblowing Conflict resolution

among diverse ethical strategies; whistleblowing
expectations

Acting ethically Engage in self-reflection Self-management; Self-management; Self-management;

and continuous reflection on the ethics of reflection on the ethics of reflection on the ethics of
improvement of ethical past behavior; skepticism past behavior; skepticism past behavior; skepticism
behavior and questioning mindset and questioning mindset and questioning mindset
about ethical behavior about ethical behavior about ethical behavior

31
ESSENTIAL MANAGEMENT ACCOUNTING COMPETENCIES FOR ALL ENTRY-LEVEL ACCOUNTANTS

Organizational Ethics
Learning Learning Introductory Course Intermediate Course Advanced Course
Outcomes Objectives Topics (Required) Topics (Required) Topics (Elective)

Recommend improvements Ethical and unethical Ethical and unethical Ethical and unethical
to the organization’s business practices; business practices; business practices;
systems and controls over ethical and behavioral Simons’s levers of control Simons’s levers of control
ethical standards and consequences of various (boundary systems, belief (boundary systems, belief
compliance budgeting approaches systems) systems)

Collaborate with others Cross-functional and Cross-functional and

to foster, clarify, and cultural collaboration for cultural collaboration for
continuously improve ethical behavior ethical behavior
the organizational ethical
culture

Encouraging an ethical Explain how controls Fraudulent and unethical Fraudulent and unethical Fraudulent and unethical
organizational culture prevent and detect activities activities; fraud triangle activities; fraud triangle;
fraudulent and unethical segregation of duties;
activities and errors internal controls for
information systems (e.g.,
preventive, detective, and
corrective); cybersecurity;
process documentation;
risk assessment and
mitigation; vendor
management; unintended
consequences of
performance measures

For more information, please visit www.imanet.org/thought_leadership.

32