NZQA Expiring unit standard
25940 version 3
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Title
Demonstrate and apply knowledge of management accounting
concepts
Level
5
Credits
12
Purpose
People credited with this unit standard are able to: explain the
role of management accounting; explain and apply the
processes for controlling and allocating costs; prepare a
variance report for a standard costing system; and apply shortterm decision-making techniques in management accounting.
Classification
Accounting > Accounting - Middle Level
Available grade
Achieved
Entry information
Recommended skills
and knowledge
Unit 11622, Demonstrate knowledge of the nature of
accounting and prepare financial statements for an entity; and
Unit 25939, Demonstrate and apply knowledge of an
accounting system; or demonstrate equivalent knowledge and
skills.
Explanatory notes
People must be assessed against this unit standard in their workplace using naturally
occurring evidence, or in a realistic simulation of such a context. Competence must be
demonstrated within timeframes expected in a commercial environment.
Outcomes and evidence requirements
Outcome 1
Explain the role of management accounting.
Evidence requirements
1.1
The explanation describes the components of the management accounting
function.
1.2
The explanation describes the role of strategic management accounting in
organisations.
NZQA National Qualifications Services
SSB Code 130301
 New Zealand Qualifications Authority 2016
NZQA Expiring unit standard
25940 version 3
Page 2 of 4
1.3
The explanation compares management accounting with financial accounting
and identifies the divergent needs served by each.
1.4
The explanation describes the role of management accounting in achieving
business objectives with quality.
Outcome 2
Explain and apply the processes for controlling and allocating costs.
Evidence requirements
2.1
The explanation describes the flow of production costs in manufacturing and
service organisations.
2.2
The explanation outlines costing systems.
Range
2.3
The explanation outlines how direct costs are controlled.
Range
2.4
costs – material, labour.
The explanation classifies costs according to information needs.
Range
2.5
job costing;
process costing – weighted average only, joint costs.
costs may include but are not limited to – overheads, material,
labour.
Product costs are accumulated and accounted for.
Range
job costing;
process costing – weighted average only, joint costs;
overhead allocation – single cost drivers, multiple cost drivers,
activity-based costing.
Outcome 3
Prepare a variance report for a standard costing system.
Range
variances – materials, labour, overhead.
Evidence requirements
3.1
Variances are identified.
3.2
The variance report comments on a possible reason for the variances.
NZQA National Qualifications Services
SSB Code 130301
 New Zealand Qualifications Authority 2016
NZQA Expiring unit standard
25940 version 3
Page 3 of 4
Outcome 4
Apply short-term decision-making techniques in management accounting.
Range
techniques – identification of relevant costs, cost-volume profit for single
products, cost-volume profit for multiple products.
Evidence requirements
4.1
Identified data is appropriate to the decision being made.
4.2
The recommendation includes qualitative considerations.
recommendations include one of – make or buy, special order,
process further.
Range
Replacement information
This unit standard has been replaced by unit standard
29020.
This unit standard is expiring. Assessment against the standard must take place by
the last date for assessment set out below.
Status information and last date for assessment for superseded versions
Process
Version Date
Last Date for Assessment
Registration
1
21 August 2009
31 December 2018
Rollover
2
24 October 2014
31 December 2018
Review
3
19 May 2016
31 December 2018
Consent and Moderation Requirements (CMR) reference
0113
This CMR can be accessed at http://www.nzqa.govt.nz/framework/search/index.do.
Please note
Providers must be granted consent to assess against standards (accredited) by NZQA,
before they can report credits from assessment against unit standards or deliver courses
of study leading to that assessment.
Industry Training Organisations must be granted consent to assess against standards by
NZQA before they can register credits from assessment against unit standards.
Providers and Industry Training Organisations, which have been granted consent and
which are assessing against unit standards must engage with the moderation system that
applies to those standards.
Requirements for consent to assess and an outline of the moderation system that applies
to this standard are outlined in the Consent and Moderation Requirements (CMR). The
CMR also includes useful information about special requirements for organisations wishing
NZQA National Qualifications Services
SSB Code 130301
 New Zealand Qualifications Authority 2016
NZQA Expiring unit standard
25940 version 3
Page 4 of 4
to develop education and training programmes, such as minimum qualifications for tutors
and assessors, and special resource requirements.
NZQA National Qualifications Services
SSB Code 130301
 New Zealand Qualifications Authority 2016