The Cost & Management Accounting (Advanced) test begins by assessing a candidate’s ability to implement strategic cost management techniques that align with organizational goals. This includes understanding cost drivers, managing cost behavior, and utilizing cost data to support strategic decision-making processes. Candidates are expected to demonstrate proficiency in developing cost management strategies that enhance competitive advantage and operational efficiency.

The test further evaluates the candidate's knowledge of advanced costing techniques, including activity-based costing, life-cycle costing, and target costing. Candidates must apply these methods to complex scenarios, ensuring accurate cost allocation and effective cost control. The test also explores the candidate’s capability in performance measurement and management, assessing their ability to analyze and interpret key financial metrics, such as return on investment (ROI) and economic value added (EVA), to drive organizational performance.

Finally, the test delves into capital budgeting and investment analysis, requiring candidates to make critical decisions on long-term investments. This includes conducting cost-benefit analysis, understanding risk and uncertainty, and evaluating project feasibility through various financial models. The test also covers financial and operational analysis, where candidates must integrate financial data with operational insights to support informed decision-making and enhance overall business performance.