ICAN Syllabus Summary for Nov 2025 Curled out by: Kabiru Yusuf Aremu, ACA (08169069670) From:

From: Apex Professional Associates

ICAN New Syllabus Summary – Nov 2025

Performance Management (PM)
Content and % Weight

A. Management Info. Systems and Data Analysis 10%

B. Advanced Costing Techniques 15%
C. Decision Making Techniques 25%
D. Budgeting and Control 20%
E. Perfor. Measurement, Control and Mgt Systems 15%
F. Performance Evaluation and Corp. Failure 10%
G. Emerging Issues in Performance Management 5%

A. MANAGEMENT INFORMATION SYSTEMS AND DATAANALYTICS - 10%

1. Management information systems

(a) Explain the role of information systems in organisations.
(b) Discuss the costs and benefits of information systems.
(c) Explain the uses of the internet, intranet, wireless technology and networks.
(d) Identify the accounting information requirements and describe the different types of information system
used for strategic planning, management and operational control and decision making.
(e) Define and discuss the main characteristics of transaction processing systems (TPS); management
information systems (MIS); executive information systems (EIS); enterprise resource planning systems
(ERPS) and customer relationship management systems (CRMS).
(f) Identify and discuss the social and ethical issues that may impact on an organisation's strategy
formulation and assess the role of the management accountant in data collection for measurement and
reporting of social and environmental factors, to demonstrate a wider view in performance reporting.

2. Application of big data and data analytics

(a) Discuss and apply the principles of big data in management information and decision making.
(b) Discuss the purposes and application of the big data pyramid.
(c) Discuss the uses and benefits of big data, data mining and data analytics.
(d) Discuss the challenges and risks associated with application of big data and data analytics in an
organisation.

B. ADVANCED COSTING TECHNIQUES - 15%

1. Activity based costing (ABC)
(a) Discuss ABC and its uses as a costing technique.
(b) Identify the suitable cost drivers under ABC.
(c) Calculate the cost per driver and per unit, using ABC.

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ICAN Syllabus Summary for Nov 2025 Curled out by: Kabiru Yusuf Aremu, ACA (08169069670) From: Apex Professional Associates

(d) Compare ABC and the traditional method of overhead absorption.

2. Target costing
(a) Discuss the principles of target costing and its uses as a costing technique.
(a) Evaluate the target cost in manufacturing and service industries.
(b) Discuss the challenges of applying target costing in service industries.
(c) Advise on how a target cost gap can be managed.

3. Life cycle costing

(a) Discuss the principles of life cycle costing and its uses as a costing technique.
(b) Identify and discuss the various stages in the life cycle of a product and the associated cost involved.
(c) Evaluate the life cycle cost or profit in manufacturing and service industries.
(d) Explain the benefits of life cycle costing.

4. Throughput accounting
(a) Discuss the principles of throughput accounting and its uses as a costing technique.
(b) Assess and apply the theory of constraints [TOC].
(c) Evaluate and draw conclusions from the throughput accounting ratio (TAR).
(d) Advise on ways in which the TAR could be improved.
(e) Discuss the application of throughput accounting in multi-product decision making.

5. Accounting for environmental and sustainability factors

(a) Discuss the concept of environmental accounting and sustainability in business.
(b) Discuss the issues involved in managing environmental costs.
(c) Evaluate the different methods of accounting for environmental costs.
(d) Discuss the challenges faced in accounting for environmental and sustainability factors.
(e) Assess the principal roles of the management accountant in supporting the business to develop
sustainability practices and sustainability reporting.

C. DECISION MAKING TECHNIQUES - 25%

1. Relevant cost analysis

(a) Explain the concept of relevant cost and revenue.
(b) Identify and calculate relevant costs for specific decision situations from given data.
(c) Explain and apply the concept of opportunity costs.

2. Cost volume profit analysis (CVP)

(a) Explain the concept of CVP Analysis.
(b) Calculate and interpret the break-even point and margin of safety.
(c) Calculate the contribution to sales ratio in single and multi-product situations, and demonstrate an
understanding of its uses.
(d) Calculate target profit and revenue in single and multi-product situations and demonstrate an
understanding of its uses.

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ICAN Syllabus Summary for Nov 2025 Curled out by: Kabiru Yusuf Aremu, ACA (08169069670) From: Apex Professional Associates

(e) Interpret break-even charts and profit-volume charts and interpret the information contained within
each, including multi-product situations.
(f) Discuss the limitations of CVP analysis for planning and decision-making.

3. Limiting factors
(a) Identify limiting factors in a scarce resource situation and select appropriate technique for allocation of
the scarce resource(s).
(b) Determine the optimal production plan where an organisation is restricted by a single limiting factor,
within the context of make-or-buy decisions.
(c) Formulate and solve multiple scarce resource problems using, both linear programming, graphs and
simultaneous equations as appropriate (excluding simplex and sensitivity to changes in objective
functions).
(d) Explain and calculate shadow prices (dual prices) and discuss their applications for decision making
and performance management.
(e) Calculate slack and explain the implications of the existence of slack for decision-making and
performance management.

4. Pricing decisions
(a) Discuss the factors that influence the pricing of a product or service.
(b) Calculate and explain the price elasticity of demand.
(c) Derive and apply a straight-line demand equation and also an equation for the total cost function
(including volume based discounts).
(d) Calculate the optimum selling price and quantity for a product, equating marginal cost and marginal
revenue.
(e) Evaluate a decision to increase production and sales levels, considering incremental costs, incremental
revenues and other factors.
(f) Determine prices and output levels for profit maximisation, using the demand-based approach to pricing
(both tabular and algebraic methods).
(g) Discuss different pricing strategies, including:
(i) All forms of cost-plus;
(ii) Skimming;
(iii) Penetration;
(iv) Complementary products;
(v) Product-line;
(vi) Volume discounting;
(vii) Discrimination; and
(viii) Relevant cost.

(h) Calculate a price from a given strategy using cost-plus and relevant cost.

5. Make-or-buy and other short-term decisions

(a) Explain the issues surrounding make-or-buy and outsourcing decisions.
(b) Calculate and compare “make” costs with “buy-in” costs.

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ICAN Syllabus Summary for Nov 2025 Curled out by: Kabiru Yusuf Aremu, ACA (08169069670) From: Apex Professional Associates

(c) Compare in-house costs and outsource costs of completing tasks and consider other issues surrounding
this decision.
(d) Apply relevant costing principles in situations involving shut down, oneoff contracts and further
processing of joint products.

6. Dealing with risk and uncertainty in decision making

(a) Identify and evaluate research techniques to reduce uncertainty, for example, focus groups, market
research.
(b) Explain the use and application of simulation, expected values and sensitivity to decision making.
(c) Explain the use and application of the following techniques: maximax, maximin, and minimax regret
to decision making, including the production of profit tables.
(d) Interpret a decision tree and use it to solve a multi-stage decision problem.
(e) Explain and calculate the value of perfect and imperfect information.

D. BUDGETING AND CONTROL - 20%

1. Budgetary systems and types of budget

(a) Select and explain appropriate budgetary system for an organisation, including fixed, flexible, top-
down, bottom-up, rolling, zero-based, activity-based, incremental and feed-forward control.
(b) Discuss the usefulness and problems associated with different budget types (including fixed, flexible,
zero-based, activity based, incremental, rolling, top-down and bottom-up).
(c) Prepare fixed budget, flexed budget, rolling budget and activity-based budget including functional and
master budgets.
(d) Explain the beyond budgeting model, including the benefits and problems that may be faced if it is
adopted in an organisation.
(e) Explain the benefits and difficulties of the participation of employees in the budgeting process and
negotiation of targets.
(f) Discuss ethical and sustainability considerations when setting budgets.

2. Analytical techniques in budgeting and forecasting

(a) Analyse fixed and variable cost elements from total cost data, using high/low method.
(b) Explain and apply analysis techniques including correlation, regression and time series.
(c) Estimate the learning rate and learning effect.
(d) Apply the learning curve model to a budgetary problem, including calculations on steady states.
(e) Discuss the benefits and limitations of correlation, regression and time series techniques, and also the
reservations with the learning curve model.

3. Standard costing
(a) Explain the use of standard costs.
(b) Outline the methods used to derive standard costs and discuss the different types of standard cost.
(c) Calculate basic variances, such as:
• Material price and usage variances;
• Labour rate, efficiency and idle time variances; and
• Labour mix and yield variances.

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ICAN Syllabus Summary for Nov 2025 Curled out by: Kabiru Yusuf Aremu, ACA (08169069670) From: Apex Professional Associates

4. Material mix and yield variances

• Calculate, identify the cause of, and explain material mix and yield variances.
• Explain the wider issues involved in changing material mix, for example, cost, quality and
performance measurement issues.
• Identify and explain the relationship of the material usage variance with the material mix and yield
variances.

5. Sales mix and quantity variances

• Explain, calculate and identify the causes of sales mix and quantity variances.
• Identify and explain the relationship of the sales volume variances with the sales mix and quantity
variances.

6. Planning and operational variances

• Discuss the concept of planning and operational variances.
• Prepare a revised budget.
• Identify and explain those factors that could lead to revision of an original budget.
• Explain, calculate and identify the causes of planning and operational variances, for:
· Sales, including market size and market share;
· (ii) Materials; and
· (iii) Labour, including the effect of the learning curve.
7. Performance analysis
• Discuss the effects of variances on staff motivation and actions.
• Describe the dysfunctional nature of some variances in the environment of JIT and TQM.
• Discuss the behavioural problems resulting from using standard costs in rapidly changing
environments.

E. PERFORMANCE MEASUREMENT, CONTROL AND MANAGEMENT SYSTEM - 15%

1. Performance analysis for profit-oriented organisations

(a) Select and calculate suitable financial performance measures for a business from a given data and
information.
(b) Evaluate the result of calculated financial performance measures based on business objectives and
advise management on appropriate actions.
(c) Select and calculate suitable non-financial performance measures for a business from a given data and
information.
(d) Evaluate the results of calculated non-financial performance measures, based on business objectives
and advise management on appropriate actions.
(e) Explain the causes and problems associated with short-termism and financial manipulation of results
and suggest methods to encourage a long term view.
(f) Discuss sustainability considerations in performance measurement of a business.
(g) Select and explain stakeholder-based measures of performance that may be used to evaluate
environmental, social and governance (ESG) performance of a business.
(h) Explain and interpret the balanced scorecard.

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ICAN Syllabus Summary for Nov 2025 Curled out by: Kabiru Yusuf Aremu, ACA (08169069670) From: Apex Professional Associates

2. Performance analysis in not-for-profit organisations

(a) Discuss the problems of using non-quantifiable objectives in performance management.
(b) Explain how performance may be measured in not-for-profit organisations.
(c) Discuss the problems of having multiple objectives.
(d) Demonstrate value for money (VFM) as a public sector objective.

3. Divisional Performance and Transfer Pricing

(a) Discuss the various methods of setting transfer price and evaluate the suitability of each method.
(b) Determine the optimal transfer price, using appropriate models.
(c) Explain the benefits and limitations of transfer pricing methods.
(d) Demonstrate and explain the impact of taxation and repatriation of funds on international transfer
pricing.
(e) Select and explain suitable divisional measures for a given business using return on investment (ROI),
residual income (RI) and economic value added (EVA) approaches. Evaluate the results and advise
management.

4. Analyse and evaluate business objectives and strategies using value chain analysis.
5. Analyse and evaluate suitable performance measures for profitability, liquidity and solvency.

F. PERFORMANCE EVALUATION AND CORPORATE FAILURE - 10%

1. Strategic performance issues in complex business structures

(a) Evaluate the problems encountered in planning, controlling and measuring performance level,
including, productivity, quality, profitability and service levels in complex business structure.
(b) Assess the impact of the use of business models, including business alliances, complex supply
chain structure, joint ventures, etc on performance management.

2. Alternative views of performance measurement and management

(a) Assess and evaluate the effectiveness of the performance pyramid in linking strategy, operations,
and performance.
(b) Assess and evaluate the use of balanced scorecard approach in improving the range and linkage
between performance measures.
(c) Evaluate and advise on the value-based management approaches to performance management.

3. Predicting and preventing corporate failure

(a) Assess how long-term survival brings about the necessity of considering life cycle issues.
(b) Calculate and advise on the potential likelihood of corporate failure utilising qualitative and
quantitative performance measures and models, including Z-score and Argenti.
(c) Identify the advantages and disadvantages of each of quantitative and qualitative corporate failure
prediction models.
(d) Identify and advise on performance management strategies that may be adopted to prevent
corporate failure.
(e) Evaluate the operational changes in organisational performance management system required to
implement performance improvement strategies.

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ICAN Syllabus Summary for Nov 2025 Curled out by: Kabiru Yusuf Aremu, ACA (08169069670) From: Apex Professional Associates

G. EMERGING ISSUES IN PERFORMANCE MANAGEMENT - 5%

1. Current developments in management accounting

(a) Identify and evaluate the various ways in which new techniques are made available to management
accounting practitioners.
(b) Evaluate the use of benchmarking in public sector performance (league tables) and its effect on
operational and strategic management and client behaviour.
(c) Identify the challenges of setting targets in public sector organisations.

2. Current issues and trends in performance management

(a) Assess the changing role of the management accountant in modern business environment.
(b) Evaluate contemporary issues in performance management.