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A list of articles relevant to P2 Management Accounting Decision Management are available to download below.

Reading widely is an important part of preparing for the exams - so use these articles as part of your study.

Some of the articles were written for the old 2000 syllabus. We have reviewed each article and those relevant to Management Accounting Decision Management are listed.

You will need Adobe Acrobat software to view the PDF files. If you do not have this installed on your computer, you can download it free from the Adobe website.

• Internal rate of return (PDF 97KB) by Grahame Steven (March 2008)
  The internal rate of return may be a flawed investment appraisal method, writes Grahame Steven, but there is a small modification that can help. 
• Increased investments in capital equipment  (PDF 130KB) by Ian Herbert (March 2008)
  Ian Herbert considers the effects of increased investments in capital equipment and lower direct labour content on standard costing. (Please note this article is relevant to Paper P1 Management Accounting Performance Evaluation but may also be of interest to P2 candidates).
• Suggested solution (PDF 22KB) by Tim Thompson (June 2007)
  Tim Thompson provides the solution to the problem he set in his May article (below) on tackling problems involving probabilities and combinations of events and decisions.
• Decision Trees (PDF 99KB) by Tim Thompson (May 2007)
  Tim Thompson explains the uses - and limitations - of decision trees in tackling problems involving probabilities along with combinations of events and decisions.
• Two-way tables (PDF 135KB) by Grahame Steven (May 2007)
  Using the two-way tables function in Microsoft Excel can take a lot of legword out of what if-analysis. Grahame Steven explains how to make the most of this tool.
• Suggested solution (PDF 123KB) by Tim Thompson (December/January 2006/07)
  In his article in November's issue, Tim Thompson invited you to tackle a short-term quality problem plaguing a fictional company. Here is his suggested solution.
• Short-term quality (PDF 136KB) by Tim Thompson (November 2006)
  In the first of two articles, Tim Thompson introduces the case of a company that's facing a tricky short-term quality problem - and invites you to solve it.
• Operational gearing (PDF 151KB) by Grahame Steven (September 2006)
  Although it's hard for investors to calculate it reliably from a company's published accounts, operational gearing is a useful measure of risk, writes Grahame Steven.
• Gain-sharing deals (PDF 154KB) by Tim Thompson (June 2006)
  Gain-sharing deals are, on the face of it, a win-win situation for suppliers and their customers. Tim Thompson examines their possibilities and practicalities.
• Management Accounting papers (PDF 121KB) by Victor Sheahan (May 2006)
  Even holy matrimony isn't sacred when it comes to the application of cost theory. Victor Sheahan explains why a small wedding could prove to be a false economy.
• Complex decision making (PDF 225KB) by Bob Scarlett (March 2006)
  Several techniques are available to help managers with complex decisions to make. Bob Scarlett explains the strengths and weaknesses of four popular approaches.
• Process costing (PDF 281KB) by Tim Thompson (February 2006)
  Tim Thompson presents a sample self-test question that explains what process costing does - and does not - tell us when it comes to evaluating joint products.
• Risk and uncertainty (PDF 2.68MB) by Tim Thompson (September 2005)
  What effect do risk and uncertainty have on decision-making? Tim Thompson considers some of the techniques that can be used to evaluate an opportunity.
• Marginal costing (PDF 89KB) by Grahame Steven (July/August 2005)
  Marginal costing is a useful decision-making tool, but it needs to be handled with care to avoid oversimplifying a business's situation.
• Profit maximisation (PDF 103KB) by Grahame Steven (May 2005)
  You don't have to use algebra or calculus to apply profit maximisation in paper P2, but a grasp of algebra will enhance your understanding of this technique.
• Guidance on how to use your additional 20 minutes reading time (PDF 85KB) by Martin Taylor (May 2005).
• Advice on how reading the business pages of quality newspapers can make your exam answers far more insightful (PDF 366KB) by Graham Pitcher (April 2005).
• The learning curve equation (PDF 294KB) by Bill Brookfield (April 2005)
  The learning curve equation has a number of applications in the manufactoring sector. Fortunately, the formula itself is fairly straightforward to learn for Paper P2.
• Means testing (PDF 410KB) by Bob Scarlett (September 2003)
  The difference between efficiency and effectiveness in a not-for-profit organisation is fine, but crucial - as it's possible to be both efficient and ineffective at the same time.
• Are they always right? (PDF 364KB) by Bob Scarlett (May 2003)
  Customer profitability analysis can determine which of your company's patrons are most valuable to the business - and which of them aren't pulling their weight.
• The gentle touch (PDF 371KB) by Bob Scarlett (February 2003)
  Sensitivity analysis is a useful decision-making tool that gives a feel for how a project's results might be affected by changes to the values of critical variables.
• Suggested answer (PDF 29KB) to the sensitivity analysis exercise from 'The gentle touch' article (see above) by Bob Scarlett (February 2003).
• Axis of evil (PDF 366KB) by Sarah Condon (November 2002)
  Graphical linear programming is a subject that has evoked extreme reactions from candidates - few of them favourable - but there really isn't much to be afraid of.
• Cut to the chase (PDF 373KB) by Carol Cashmore (September 2002)
  Save precious exam time by using the cumulative present value tables provided.
• That sinking feeling (PDF 371KB) by Bob Scarlett (September 2002)
  Deflation not only has an effect on investment appraisal mathematics; it also has a  psychological impact on investors.
• ABB Fab (PDF 381KB) by Bob Scarlett (May 2002)
  Advice on how to use activity based techniques to improve decision making - and an explanation of why a significant proportion of ABC implementation fail to achieve the desired results.
• Lessons from history (PDF 663KB) by Grahame Steven (May 2002)
  Why management accounting should stop following the lead of financial accounting and concentrate on modern requirements.
• Straight thinking (PDF 367KB) by Grahame Steven (December 2001)
  Linear programming - can we solve it? Yes we can, with a little help from Excel Solver.
• Quality streak (PDF 387KB) by Bob Scarlett (September 2001)
  The principles of TQM have inspired devoted followers, but is it unwise to believe that the approach will work for all companies.
• Investment appraisal - a 'balanced scorecard' approach (PDF 454KB) by Kevin Mayes (October 2000)
  An introduction to the links between corporate governance, investment appraisal and post project audit by Kevin Mayes (October 2000).
• Allowing for uncertainty (PDF 351KB) by David Allen (June 2000)
  This article looks at the idea of a 'certainty equivalent' for use in appraising investment proposals and evaluating businesses.
• The use of activity-based information: a managerial perspective (PDF 605KB) by John Innes (December 1999)
• Beyond discounted cash flow (DCF) (PDF 608KB) by Roger Peskett (November 1999)
  This covers options in investment appraisal.
• What is reality? (PDF 343KB) by David Allen (October 1999)
  This article looks at the treatment of changes in sales volumes and prices in financial management examinations.
• The learning curve - from aircraft to spacecraft? (PDF 369KB) by Grahame Steven (May 1999).

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