FIN31 Cost Accounting and Management

Module Name
Cost Accounting and Management
Module Code
Justice Kyei-Mensah
Phase 2 related modules ( FN) or equivalent
The course is designed for those who wish to achieve an understanding of cost accounting, but without the in-depth knowledge as asked for students majoring in financial management. The course gives an insight in a modern, Western cost and management accounting process. Whereas management accounting is concerned with the measurement and reporting of financial and other types of information to managers in their pursuit of organisational and other goals, cost accounting is more concerned with information on the acquisition and consumption of resources. Many innovative approaches in cost accounting management relate to, for instance, quality concerns, throughput concepts, non-financial performance issues and strategic analysis. Organisational and social aspects of management accounting are integrated throughout the text to lend it a greater degree of realism.
  • 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.
Instruction / Study Load

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

IBA Final Qualification Mapping
Mapped with numbers 2, 13, 16, and 18 See the EEG for further reference.
Teaching Language
Teaching Methods
  • Classroom lecturing
  • Case study discussions
  • Feedback and presentation sessions
  • Video and film
  • Discussion sessions
  • Research Papers
Module / Lecture and seminar status
Testing and assessment
Written Examination (1) See the EEG for further reference.
European Credits
Required literature

Management & Cost Accounting 3rd edition, Horngren, Bhimani, Datar and Foster. FT Prentice Hall, ISBN 0-273-68751-4


Articles and Journals related to the module are to be published on the Module Online Area