| Module Identifier |
MBM1610 |
| Module Title |
MANAGEMENT ACCOUNTING AND FINANCE |
| Academic Year |
2001/2002 |
| Co-ordinator |
Ms Jennifer Lane |
| Semester |
Semester 2 |
| Other staff |
Dr Jihe Song |
| Course delivery |
Lecture | 20 Hours |
| |
Tutorial | 7 Hours |
| Assessment |
Course work | | 20% |
| |
Exam | 2 Hours | 80% |
Brief description
This module gives students a thorough and practical grounding in the concepts and practices of management accounting and of financial management as pertinent for the managers / directors in an organisation.
Objectives
Management Accounting: The objective is to introduce students to the principles and practices of management accounting as relevant to management valuation, decision-making and control within (principally) commercial organisations.
Finance: The objective is to introduce students to the principles underlying the financing and investment decisions required of commercial organisations and the interaction between financing and investment decisions.
Learning outcomes
Having competed the module, students will be able to:
(Management Accounting:)
-
distinguish between, compare and contrast financial and management accounting
-
describe, explain and illustrate the key concepts which underlie management accounting
-
explain the purposes, main uses and limitations of management accounting
-
apply various management accounting techniques for valuation, decision making and control
-
assess their usefulness, criticise and comment on their relative advantages and disadvantages of these techniques
(Finance:)
-
explain the role of Financial Management and the concepts which underlie it
-
identify sources of short, medium and long term finance and identify key elements of capital markets
-
apply various investment appraisal techniques
-
explain the assumptions underlying traditional and discounted cash flows investment appraisal techniques
-
discuss and explain the advantages and disadvantages of the various investment appraisal techniques
-
explain understand the treatment of inflation in investment appraisal analysis
-
calculate the cost of share (equity) capital and debt capital and a firm?s overall cost of capital.
Outline syllabus
Management Accounting:
-
introduction; classification of costs
-
absorption vs. marginal costing; ABC
-
contribution analysis; break even; scarcity
-
relevant costs and decision making
-
budgets and variance analysis
-
decentralised management; transfer pricing
-
divisional and prioject appraisal
Finance:
-
introduction
-
sources of finance
-
investment appraisal
-
cost of finance
Reading Lists
Books
Drury, Colin. (2000)
Management and Cost Accounting. 5th. Business Press Thomson Learning
Levy, H and Sarnat, M.
Capital Investment and Financial Decisions. Prentice-Hall
Horngren.
Cost Accounting: A Managerial Emphasis. Prentice-Hall
Lumby, S.
Investment Appraisal and Financing Decisions. Chapman & Hall
Sizer.
Insight into Management Accounting. Penguin
Samuels, J, Wilkes, F and Brayshaw, R.
Management and Company Finance. Chapman & Hall