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The module advances students' knowledge and skills in management accounting. By completing the module, students will be able to:
Understand the concepts of relevant costs and revenues and use them to make managerial decisions. Differentiate between short and long-term pricing decisions and learn the functioning, advantages and disadvantages of target pricing and cost-plus pricing. Use management accounting information to prepare customers profitability reports.
Learn what are the tools used for planning and controlling a company's performance in an international context and how they function. Understand what the relationship between strategic planning and budgeting is. Prepare budgeted financial statements and understand the functioning of responsibility accounting systems to stimulate managers’ motivation. Know how standards costs and targets are set to foster performance improvements. Prepare flexible budgets and use actual and standard costs information to analyse variances including yield, mix, quantity effects of inputs and volume, mix and quantity effects of sales. Prepare a performance report that reconcile actual and budgeted profit. Provide a holistic interpretation of company’s performance and provide recommendations for managers to take actions or revise the strategic plans.
Apply multiple methods to make capital investment decisions for strategy implementation. Classify environmental costs and learn the role played by environmental management controls for company’s sustainability.
Core areas of the syllabus are:
• Relevant and irrelevant costs and revenues for decision-making
• Pricing, target costing and customer profitability analysis
• Motivation, budgets and responsibility accounting
• Flexible budgets, standard costs and variance analysis for management control
• Yield, mix and quantity effects of inputs
• Volume, mix and quantity effects of sales
• Capital investment decisions
• Environmental costs and environmental management controls for sustainability
Contact hours: 32
Independent learning hours: 118
Total study hours: 150
Main assessment methods:
VLE test 1 (30 minutes) 15%
VLE test 2 (30 minutes) 15%
Exam (2 hours) 70%
Reassessment methods:
Exam 100%.
Bhimani, A., Horngren, C.T., Datar, S.M. and Rajan, M.V. (2019) Management and Cost Accounting 7th edition, Harlow: FT-Prentice Hall
Drury, C. (2018) Management and Cost Accounting 10th Edition, Andover: Cengage Learning
The intended subject specific learning outcomes.
On successfully completing the module students will be able to:
- Critically distinguish between relevant and irrelevant costs and revenues for decision-making.
- Demonstrate an understanding between short-run and long run pricing decisions, describe approaches to pricing and perform customer profitability analysis.
- Design, prepare and analyse budgets.
- Perform complex variance analysis for strategic planning and control.
- Measure and apply yield, mix and quantity effects in planning and control.
- Critically evaluate capital budgeting and perform capital investment evaluations.
- Critically distinguish environmental costs and analyse the role of environmental management controls for sustainability.
The intended generic learning outcomes.
On successfully completing the module students will be able to:
- Communicate effectively to a variety of audiences and/or using a variety of methods and 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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