1

MAS STUDY PLAN

May 2019 Exam Recap

1. The exam was composed of 70 theory and computation questions. The

questions were copied from foreign testbank particularly CMA materials.
The Test of Specification was not followed.

2. Theory questions were answerable but tricky. You just need to be exposed to
foreign books to understand some terms. Computational problems were
shorter and simpler this batch but required a deeper understanding of
concepts is required.

3. New notable terms: Variance of returns, cash operating cycle, return on

equity, sales margin, portfolio risk and return, spending variance, economic
profit, Dupont with interest.

4. For the next batches, please prioritize the review of PRTC drills and RESA
Pre-week. An estimated 12 questions appeared in their handouts.

5. Topics of interest: Financial Management, Financial Analysis, Variances,

and Investments.

6. VIP Premium iCPA Customers: The reconstructed May 2019 exam will be
emailed to you May 21 midnight.

www.icpa.ph
 2

MANAGEMENT ACCOUNTING & CONTROL

Number Date Date

TOPIC of Hours Started Ended
Objective, role, and scope of management accounting 3.5
Management functions and concepts .5
The distinction of management, cost, and financial accounting .5
Role and activities of controller and treasurer .5
International certifications in management accounting .5
Nature of management consultancy engagements .5
Professional attributes of management consultants .5
Areas, stages and management consultancy engagements .5

Cost Volume Profit Analysis (CVP) 12

Uses, assumptions, and limitations of CVP 1
Factors affecting profit 1
Breakeven point in unit sales and peso sales 2
Required selling price, unit sales, and peso sales to achieve a target
profit 2
Sensitivity analysis (indifference point in unit and peso sales 2
Use of sales mix in multi-product companies 2
The margin of safety and degree of operating leverage 2
Financial Planning and Budgets 8
Budgeting process 2
Master budget and its components 2
Types of budgets (static, flexible, zero-based, continuous) 2
Budget variance analysis 2

Responsibility Accounting 8
Types of responsibility centers (cost, revenue, profit, and
investment centers) 1
Decentralization and segment reporting 1
Controllable and non-controllable costs, direct and common costs 1
Performance margin (manager vs segment performance) 1
Segmented income statement 2
Return on investment, residual income and economic value added 2

Transfer Pricing 8
Transfer pricing schemes (minimum transfer price, market-based
transfer price, cost-based transfer price, and negotiated price) 8

www.icpa.ph
 3

Number Date Date

TOPIC of Hours Started Ended

Balance Scorecard 4
Nature and perspectives of the balanced scorecard 2
Financial and non-financial performance measures 2
Quantitative techniques 13
Inventory models (carrying and ordering costs, EOQ model, safety
stock, reorder point) 13

Relevant Costing 14
Identification of relevant costs 2
Opportunity costs 4
Approaches in analyzing alternatives in non-routing decisions
(total and differential) 4
Types of decision (make or buy, accept or reject special order,
continue or drop/shutdown, sell or process further, best product
combination, and pricing decisions. 4

Working Capital Finance 46

Significance of working capital management 2
Working capital investment and financing policies (conservative
vs. aggressive) 6
Cash and marketable securities management (cash conversion
cycle, optimal cash balance, Baumol, collection and disbursement
float, cash management system) 8
Receivables management (average balance of receivables,
incremental analysis, and evaluation of discount, collection, and
credit policies. 8
Inventory management (carrying, ordering and stock-out costs,
inventory control system including EOQ model, safety stock, reorder
point) 8
Sources of short-term funds (trade credit, bank loans, commercial
papers, receivable factoring) 6
Estimating cost of short-term funds (annual cost of trade credit,
effective and nominal annual rate of short-term funds) 8

www.icpa.ph
 4

Number Date Date

TOPIC of Hours Started Ended

Capital Budgeting 38
Capital investment decision factors (net investment for decision
making, cost of capital, cash and accrual net returns) 2
Non-discounted capital budgeting techniques (payback period,
accounting rate of return on original and average investment, bail-
out payback and payback reciprocal) 8
Discounted capital budgeting techniques (net present value,
internal rate of return, profitability index, equivalent annual annuity,
fisher rate, and NPB point of indifference. 8
Project screening, project ranking and capital rationing
(independent and mutually exclusive capital investments 8
Sensitivity analysis (effects of changes in project cash flow, tax
rates) 8

Investments, risks, and rates of returns 30

Types of risks (business/operating, financing) 6
Measures of risks (beta, coefficient of variation and standard 6
deviation)
Degree of operating, financial and total leverage 6
Investment models (Black-Sholes, CAPM) 6
Capital markets 3
Types of investment products 3

Capital structure and long-term financing decisions 18

Concepts and tools of capital structure management 6
Sources of intermediate and long-term financing 6
Cost of capital (cost of long-term debt, cost of preferred shares,
cost of equity, the weighted average cost of capital, the marginal cost
of capital 6

MANAGEMENT CONSULTANCY
Management Consultancy 3.5
Management functions and concepts .5
The distinction of management, cost, and financial accounting .5

Role and activities of controller and treasurer .5

International certifications in management accounting .5
Nature of management consultancy engagements .5
Professional attributes of management consultants .5
Areas, stages and management consultancy engagements .5

www.icpa.ph
 5

Number Date Date

TOPIC of Hours Started Ended

Project Feasibility Studies 4

Nature, purpose, and components 1
Analysis of project revenue and costs 1
Preparation of projected FS 1
Analysis of financial projections 1
Project Management
Investments
Derivatives (forwards, futures, swaps, and options)
Investment models (Black-Sholes, CAPM)
Capital markets and stock exchanges
Types of investment products and their characteristics
IFAC & Philippine Code Ethics for the Accountancy Profession
TOTAL HOURS 210

ECONOMICS
Number Date Date
TOPIC of Hours Started Ended
Macroeconomics 6
GDP and GNP 1
Unemployment 1
Inflation 1
Fiscal and monetary policies 1
International trade 1
Foreign exchange rates 1
Microeconomics 6
Demand 1
Supply 1
Market equilibrium 1
Price elasticity of demand 1
Market structure 1
Production and cost functions 1

www.icpa.ph