ICMAP

SYLLABUS 2016
Estd. 1951

FUNDAMENTAL LEVEL
F6 - Business Mathematics and Statistics
Weightage

Part-B
Part-A Part-A Business Mathematics 50%

Part-B Statistics 50%

Syllabus Overview: l Explain classification and presentation of data and

information
This course comprises basic concepts and techniques of
l Comprehend linear, non-linear and simultaneous
mathematics & statistics. A thorough knowledge in the
equations
areas of basic mathematics and presentation of data is an
essential skill for management accountant. The l Apply functions and inequalities
management accountant should understand statistical l Apply differentiation
concepts, because of the need to estimate the l Get acquainted with the use of integral calculus
uncertainties of business decisions based on complex
l Apply mathematics of finance
and variable factors. This course also gives basic
understanding of mathematical techniques applied in l Use linear programming
corporate planning, management accounting, cost l Apply measures of location
accounting, financial management and for sampling l Use measures of dispersion/ measures of shape of
during audit. distribution
Learning Outcomes: l Use correlation and linear regression/ time series
(secular trend)
On completion of this course, students will be able to:
l Comprehend the use of index numbers
l Understand the use of mathematical and statistical l Learn about probability theory and apply probability
techniques distributions, and statistical inference

Detailed Contents Weightage Level of

in % Study Required
PART-A: BUSINESS MATHEMATICS
1. Basic Mathematics l Integers, fractions and decimals U
l Order of operations U
l Polynomial U
l Roots and powers U
l Factorization U
l Mathematical progressions U&A
Arithmetic progressions
Geometric progressions 10
2. Linear and Non-Linear l Slope and intercept U&A
Equations l Properties of linear equation U&A
l Co-ordinate system U
l Second degree equations U
3. Simultaneous l Elimination method (excluding Gaussian U
Equations Solution elimination method)
(Upto three variables)/ l Substitution Method U
System of Equations l Graphic Method U

Institute of Cost and Management Accountants of Pakistan

70 (Constituted under Cost and Management Accountants Act, 1966)
 ICMAP

SYLLABUS 2016
Estd. 1951

4. Functions l Functions and types of functions U

Uni-variate and Bi-variate
l Domain and range U
Restricted and unrestricted domain and range
l Exponential and logarithm functions 10 U
l Application of linear function U&A
l Break-even analysis U&A
5. Inequalities l Inequalities (first and second degree) U&A
6. Differentiation l Average rate of change U, A & D
l Concepts of derivative and differentiation U&A
l Basic rules of differentiation U
l Instantaneous rate of change U, A & D
7. Optimization l Relative minima, maxima and point of inflection U
Applications l Revenue, cost and profit application 15 U, A & D
8. Integral Calculus l Concept of integration (anti-derivatives) U&A
l Application of integral calculus - converting U&A
marginal to total functions
l Other economic applications - calculation of U
consumers' surplus
9. Mathematics of l Concept of interest ( time value of money) U, A & D
Finance l Simple and compound interest U&A
l Nominal and effective rate U&A
l Present and future value U&A
l Concept of annuities U&A
l Mortgage U&A
l Concept of net present value (NPV) and internal 15 U, A & D
rate of return (IRR)
l Cost benefit analysis through NPV and IRR U, A & D
l Interpolation and perpetuities U, A & D
10. Linear Programming l Concept of linear programming U&A
l Graphical presentation for optimization/ corner U&A
point method
PART B: STATISTICS
11. Data and Information l Introduction U
l Characteristics of good information U
l Collection of data U
l Data type U
l Tables 5 A
l Charts A
l Frequency distribution A
l Graphical presentation of grouped and A&D
ungrouped data
12. Measures of Location l Arithmetic mean U&A
l Geometric mean U&A
l Harmonic mean U&A
l Mode U&A
l Median 10 U, A & D
l Partition values A
Quartiles
Deciles
Percentiles

Institute of Cost and Management Accountants of Pakistan

(Constituted under Cost and Management Accountants Act, 1966) 71
 ICMAP

SYLLABUS 2016
Estd. 1951

13. Measures of l Range U&A

Dispersion/ l Mean deviation U&A
Measures of Shape l Quartile deviation/ semi quartile range U&A
of Distribution l Variance and standard deviation U&A
l Relative measures of dispersion U, A & D
l Skewness (excluding from the method of moments) A&D
14. Correlation and l Correlation A&D
Linear Regression/ l Correlation coefficient and coefficient of determination U&A
Time Series (Secular l Spearman's rank correlation coefficient A&D
Trend) l Lines of best fit A&D
l Scatter graph method U, A & D
l Linear regression analysis U
l Freehand curve, semi-average, moving average 10 A&D
and least square
15. Index numbers l Basic terminology U
l Index relatives U&A
l Composite price index A&D
l Special weighted index numbers and methods U, A & D
Laspeyres
Paasche
MarshallEdgeworth
Fisher
l Retail price index for Pakistan A
l Purchasing power of rupee A&D
16. Probability Theory l Concept of probability U&A
l Sets and sets operation 10 U&A
l Counting techniques U&A
l Rules of probability (additive, multiplicative, A
marginal and conditional)
17. Probability l Normal distribution U, A & D
Distributions l Binominal distribution U&A
l Poisson distribution U&A
l Hypergeometric distribution A
18. Statistical Inference l Sampling methods (random and non-random A
sampling)
l Kinds of random sampling U
Simple random sampling
Stratified sampling (introduction only)
Systematic sampling (introduction only)
Cluster sampling (introduction only)
Multistage/ Multi phase (introduction only) 15
l Concepts of sample size U&A
l Estimation confidence intervals for single population U&A
mean and proportion
l Testing of hypothesis for single population U&A
mean and proportion
l Chi-square test (test of independence only) U&A
TOTAL WEIGHTAGE 100

NOTE:-
U = Understanding
A = Application
D = Decision

Institute of Cost and Management Accountants of Pakistan

72 (Constituted under Cost and Management Accountants Act, 1966)