The module provides an understanding of the role of management accounting in the current global scenario and develops key skills in relation to cost accumulation and determination for decision-making. Areas that will be covered are:
Identify what is management accounting and how it differs from financial accounting. Appreciate who are the users of management accounting information and how management accountants can suit their information needs for the creation of customer and shareholder value in a complex and rapidly changing international context.
Understand the different typologies of costs that can be used for decision-making purposes and how cost behaviour has a significant impact on management accounting reports. Appreciate why different costs must be used for different decisions.
Analyse the relationship between the cost structure of a business and the level of production needed to achieve the desired level of profit for the said business. Apply this knowledge to the preparation of the optimal production plan for single and multi-product businesses. Appreciate the impact of any changes in the original assumptions on the forecasted profit for a business.
Calculate the cost of products/services considering all costs involved. Allocate costs to products under different internationally recognised costing systems and understand how the choice of a costing system is linked to the activity performed by a business. Understand the differences between different methodologies of cost calculation and their impact of on decision-making.
Core areas of the syllabus are:
• Management accounting and management accountants in an international context
• Cost terms and purposes
• Cost-volume-profit analysis
• Costing systems
Private Study: 117
Contact Hours: 33
Total: 150
Main assessment methods
VLE test 1 (15%)
VLE test 2 (15%)
Exam, 2 hours (70%)
Reassessment methods:
100% examination
See the library reading list for this module (Canterbury)
The intended subject specific learning outcomes.
On successfully completing the module students will be able to:
- Differentiate the contexts in which management and financial accounting operate.
- Understand the planning and control cycle of a business and how accounting information can support managers' needs.
- Understand the nature and classification of costs based on different terms and purposes.
- Identify and use different methods to estimate costs.
- Use cost information to perform cost-volume-profit-analysis for single and multi-product firms.
- Calculate product costs under various costing systems.
The intended generic learning outcomes.
On successfully completing the module students will be able to:
- Communicate effectively both orally and in writing using appropriate technical language.
- Manage their own learning by planning and working independently using appropriate learning resources.
- Evaluate arguments, assumptions and data to make judgements, and frame appropriate questions to achieve a solution to a problem.
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