Management Accounting :
Case Study
Society of Certified Management
Accountants of Sri Lanka
Case Study
 IFAC’s IES 6: Test
on professional
capabilities and
competence
 Test on
Management
Accounting skills
 Test on Strategic
skills
Evaluation Criteria
1. Management Accounting - 20 Marks
Sound technical knowledge in
Management Accounting
2. Application of theories
- 20 Marks
Diverse knowledge clearly applied in an
analytical and practical manner in solving
the problems in the case
3. Prioritisation
- 10 Marks
Issues to be prioritised in a logical
manner with a clear rationale
4. Decision making skills - 20 Marks
Ability to recognise and present
appropriate alternative solutions and
take effective judgment in a logical &
rational manner
5. Logical arguments
- 20 Marks
Ability to communicate effectively
with realistic recommendations in a
concise and logical fashion
6. Communication skills – 10 Marks
How Case Study works
 Scenario 1 will be released two
months before the exam
 Scenario 2 will be given on the exam
date.
 This will be the continuation of
scenario 1, but with more twists
 Students will be given a ‘Question’
on the exam date
 Students cannot take their analysis
with them into the exam room. A
fresh scenario 1 will be given on the
exam day
 Answers will be marked against the set
evaluation criteria. Students should be
informed about the marks allocated for
each evaluation criterion.
How NOT to prepare recommendations
 A few one or two lines in bullet point
format
 Half a page of brief unjustified
recommendations
 No recommendations on the identified
top priorities
 Ask for more time, more data etc
before a recommendation can be
made
 Unethical recommendations
Management Accounting skills
 Advanced calculations
 Relevant
 Interpretation
 Assumptions to be questioned&
changed
 Sensitivity analysis
 Clear workings
General guidelines
 Students should not repeat the
basic facts without adding value
 Lack of information cannot be
given as an excuse for not taking
decisions
 Clear understanding of the ‘Role’
Report Writing
What makes a good report?
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Achieve your objective
Logical structure
Easy to follow
Interesting to read
Clearly set out
Short and simple as possible
Clear conclusions/recommendations
Good to look at
Logical structure
The story should unfold as the reader
progresses through the document.
This is achieved by going from the general to
the specific, with the background material
preceding the technical expose, which should
lead logically to the conclusions.
Outline report format
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Title Page
Contents
Terms of Reference
The body of the report
Conclusions - summary
Recommendations - Actions
Appendices – Technical
Body of the report
 A good Case Study answer,
should be like a good book, has a
beginning, middle and an end.
Together with a clear ‘storyline’
linking them together.
Beginning - Introduction
 Facts/Present/Past situation. This will set
the scene (can link to the terms of
reference).
 Summarises the background to the
problem (or the company) and how it
has arisen. Outlines the present position
of the organisation, and the approach
that you plan to take.
 Your introduction may be very brief, as
the recipients of the document may
already know much of the background.
Middle
 An evaluation - What was your decision criterion.
What tools did you use and what did they
indicate.
 Remember you are the expert and need to
interpret the results for others.
 What were your findings and what other
alternatives did you consider?
 Investigate and assess the key issues or options
that are relevant. These should be dealt with in a
logical sequence and there should be a ‘storyline’.
 Signpost intentions - The use of headings white
space and appropriate language all help to make
the report easier to read and navigate.
End
 Conclusions. This section should round off your
arguments, and summarise the balance of them.
 Try to end positively at least with some power and
authority. It gives you an opportunity to say how
you feel, in general terms, about the situation.
 Recommendations should be clearly identified,
even if they are simply guidance as to what
additional analysis is necessary before a decision
can be made. There will always be a need for
further action as a consequence of your analysis.
Terms of Reference
 Objective of the report
 Who asked for it and why?
 Who did the work?
 Any constraints imposed
 Basis of information
The body of the report
 Introduction - background to the report the facts of the case
 Evaluation:
 Identify key issues dependant on
objective and if feasible, rank in order
(best first)
 Analysis of results
 List each alternative course of action
 Show pros and cons for each
 State why rejected
Conclusions
 Separate from recommendations
 Reservations – missing
information – further work needed
 Summary of thoughts - logic of /
balance of argument
Recommendations
 Action (or non-action) recommended as a
result of the conclusions reached
 Include a timescale for completion of
major areas
 If asked for a recommendation, give one.
Shows you could make the decision
yourself
 They must be developed and justified
using available information; stating the
need for more information, and further
investigation will not suffice
Appendices
 If possible, put all major details into
appendices. This includes
PEST/SWOTS as well as NPV’s and
any financial evaluation.
 Ensure cross references to the text
in the report.
How to write
 Your own writing style
 Writing style is something that develops
over time. It is influenced by your
education and experiences. To some it
comes easy, they enjoy words but you
are not looking to win any prizes in
literature.
 It’s about putting facts, ideas and
opinions in a clear, concise, logical
fashion. Generally write, as you would
talk.
Who is reading the report
 Failure to pitch the level correctly
will also inevitably result in
failure to communicate your
ideas effectively, since the reader
will either be swamped with
complexity, or bored with
blandness.
Understandable
 Using the right words
 are you writing about recommendations or
What you
options
should do
Actions
What you could do
Possibilities
 are you writing about objectives or
strategies?
Route to
achieving
objectives
Desired
results
Simple
 One main point per sentence:
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Short
Short
Short
Short
Short
words
sentences
phrases
paragraphs
Tactful
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Tactless
The directors have clearly made errors
Tactful
There were other options open to the board that
with hindsight would have been beneficial
Tactless
The marketing director is responsible for this
disastrous change in strategy
Tactful
The board should consider where this went
wrong? It would appear that the marketing
department may have made some mistakes
Things to avoid
 Poor punctuation - Don’t go mad. Follow
the breathing rule.
 Tautology - (unnecessary repetition)
 “I, myself, personally”. Do not “export
overseas”. “Green in colour”. Ask the
question, as opposed to what?
 Oxymoron - word combinations that are
contradictory. “I never make predictions;
and I never will”. “I have told you a
million times don’t exaggerate”.
 Spelling.
 This may seem a small an unimportant
point, but poor spelling makes a
document seem sloppy and may convey
an impression that the content is as loose
as the general appearance!
 But starting with And, But and Because is
OK.
 And so are split infinitives. (Any word
between to and the verb) . To travel. To
eat. “To boldly go”. “To fully understand”.