AC10210 - INTRODUCTION TO MANAGEMENT ACCOUNTING

Module Identifier

AC10210

Module Title

INTRODUCTION TO MANAGEMENT ACCOUNTING

Academic Year

2005/2006

Co-ordinator

Mr Teerooven Soobaroyen

Semester

Semester 2 (Taught over 2 semesters)

Other staff

Dr Kelum N Jayasinghe

Course delivery

Lecture

Seminars / Tutorials

Assessment

Assessment Type	Assessment Length/Details	Proportion
Semester Exam	2 Hours - at the end of semester 2	80%
Semester Assessment	One assignment at the end of semester 1	20%
Supplementary Exam	2 Hours	100%

Learning outcomes

On successful completion of this module students should be able to:

Explain the purpose of accounting in an organisatin and its different uses for internal as well as external purposes and compare the various 'branches' of accounting, namely cost accounting, management accounting and financing accounting.

Explain the changing circumstances that have affected organisations and the role of cost and management accounting.

Explain and classify the various cost items by element, by function and by behaviour.

Explain the uses of, and calculate, overhead absorption rates in the context of absorption costs.

Explain the differences and uses of absorption costs vs. those of marginal costings.

Explain and apply cost-volume-profit techniques.

Explain and apply relevant cost techniques and the contribution concept in selected decision-making scenarios.

Explain the budgeting process and the uses and types of budgets in organisations.

Explain the role of budgeting within an organisation and the implication for budgetary control.

Evaluate budgetary systems such as fixed and flexible, zero based and incremental, periodic, continuous and activity based.

Develop, implement and coordinate budgeting systems: functional, subsidiary and master budgets (including cash budgeting).

Understand the principles of standard costing.

Identify and calculate variances for sales, materials, labour, variable overheads and fixed overheads; absorption and marginal approaches.

Understand the causes of variances.

Prepare the basic operating statements; interpret and apply them to business performance.

Describe the nature and scope of working capital management.

Aims

The aim of this module is to provide students with the basic knowledge of cost and management accounting practices and their applications within organisations. This involves the provision and interpretation of information to assist managers in planning, controlling, taking decisions and appraising performance.

Brief description

This module is intended to provide students with a basic understanding of cost and management accounting concepts and their application within organisations.

Content

Context and proposes of cost and management accounting
Cost terms and concepts
Absorption and marginal costing
Cost volume profit analysis
Relevant costs in short-term decision-making
Budgeting process and budgets in organisations
Standard costing and variances
Working capital management

Transferable skills

The module also aims to assist students to develop their personal transferable skills by encouraging them to

identify and distil key issues covered be lectures
develop basic information accessing and researching skills and
discriminate between relevant and irrelevant information for the purpose of decision-making

Reading Lists

Books
** Recommended Text
Drury, C Management and Cost Accounting, 6 edition. Thomson Learning
Drury, C Management Accounting for Business 3rd edition. Thomson Learning
** Supplementary Text
Atrill & McLaney Accounting and Finance (for Non-Specialists)
T Lucey Management Accounting,
Horngren, et al Management and Cost Accounting

Notes

This module is at CQFW Level 4