- Define, explain and describe the basics of management accounting
- Explain and evaluate the various budgetary control systems including, zero-based budgeting, activity-based budgeting, fixed and flexible budgets
- identify, discuss and evaluate the behavioural aspects of budgeting
- Apply and demonstrate the use of cost estimation techniques and learning curve
- Apply, explain and evaluate standard costing and variance analysis
- identify and explain the issues arising from the measurement of divisional performance
- Explain the need for transfer pricing, and explain, apply and evaluate the various methods used for the setting of transfer prices
- Apply the various techniques available to manage and measure the performance of divisions
- Explain and evaluate the role of strategic management accounting in the strategic planning and control process
- Demonstrate an appreciation of the current issues and challenges faced by management accounting and apply this awareness to the management of business performance
- Introduction to cost accounting management.
- The role of cost accounting in financial statements.
- Forces of change in management accounting.
- Cost drivers, like production (labour, materials, machines), distribution, service, investments.
- Total costs and unit costs.
- Financial statements and cost terminology.
- Service-, merchandising- and manufacturing sector companies.
- Cost calculation.
- Job and process-costing.
- Weighted-average method and first-in, first-out method.
- Cost allocation: cost pools, other departments, common costs, cost hierarchies.
- Joint-cost allocation, accounting for by-products.
- Actual costing and normal costing.
- Cost sorts, like direct, indirect, fixed and variable costs.
- Cost-volume-profit relationships: revenue and cost drivers, breakeven point, PV graphs, not-for-profit organisations, contribution and gross margins.
- Pricing: influences on pricing, product-cost categories, target costing,
- Budgeting, like major components and responsibilities.
24 Lesson hours
8 Preparation Lesson hours
10 Assignments / Homework hours
20 Exam and exam preparation hours
78 Literature (Depending on the length and difficulty of the book) hours
The course uses 390 pages from the book(s) and journal articles where:
- 390 pages average reading and understanding material – 78Hours
- Difficult reading and understanding material – 3 pages per hour
- Average reading and understanding material – 5 pages per hour
- Easy reading and understanding material – 7 pages per hour
Total 140 Hours
- Classroom lecturing
- Case study discussions
- Feedback and presentation sessions
- Video and film
- Discussion sessions
- Research Papers
Management & Cost Accounting 3rd edition, Horngren, Bhimani, Datar and Foster. FT Prentice Hall, ISBN 0-273-68751-4
Cost Management: Measuring, Monitoring, and Motivating Performance Leslie G. Eldenburg, University of Arizona, Susan Wolcott, Wolcott Lynch Associates, ISBN: 978-0-471-20549-4
Articles and Journals related to the module are to be published on the Module Online Area