Module Information

Module Identifier
Module Title
Management Accounting 3
Academic Year
Semester 1 (Taught over 2 semesters)
Also available in
Other Staff

Course Delivery

Delivery Type Delivery length / details
Lecture 20 x 2 Hour Lectures
Lecture 18 x 1 Hour Lectures
Seminar 10 x 1 Hour Seminars


Assessment Type Assessment length / details Proportion
Semester Exam 3 Hours   Unseen written examination  70%
Semester Assessment Assignment: 2,000 words  Assessment 1  30%
Supplementary Exam 3 Hours   Unseen written examination  Repeat failed element  70%
Supplementary Assessment Assignment: 2,000 words  Repeat failed element  30%

Learning Outcomes

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

* Review various roles of management accounting in social and organisational context;

* Discuss various approaches to cost management in an operational context (including target costing, activity based management, business process re-engineering, total quality management and just-in-time methods) and evaluate their impact on accounting;

* Examine the elements of strategic management accounting and discuss the different contributions that have been made to its development;

* Explain and evaluate the various budgetary control systems and their use in practice;

* Apply, explain and evaluate advanced standard costing and variance analysis;

* Explain, apply and evaluate the various divisional performance measures and their use in practice;

  • Explain the need for transfer pricing, and explain, apply and evaluate the various methods used for
  • setting of transfer prices;

* Discuss the current issues in management accounting.


This module is a core module to the School of Management and Business N400 Accounting and Finance, as well as all of the Accounting and Finance major and minor schemes.

Further, the module contributes to the maintenance of (or is anticipated to contribute to the achievement of [further]) accreditation from professional accountancy bodies, including:

  • Institute of Chartered Accountants in England and Wales
  • Association of Chartered Certified Accountants
  • Chartered Institute of Management Accountants
  • Institute of Chartered Accountants of Scotland

Brief description

This module develops in-depth understanding of advanced management accounting and modern trends in management accounting practice. The main objective is to explore, through literature review, theoretical issues and practical developments which impinge on management accounting practice. These broadly include: the role of management accounting, cost management, budgeting, evaluating and managing performance and strategic management accounting.

The module focuses on further developing management accounting decision making skills across a variety of contexts. It also examines the usefulness of modern techniques in management accounting with particular focus on uncertainty and how the modern business environment is shaping the tools and techniques used for evaluating competitive advantage and for planning and control. The module also provides students with an in-depth appreciation of the various management accounting decision-making techniques that are relevant to wide range of decisions faced by organizations.

The module develops from traditional management accounting covered in management accounting 2 into an in-depth understanding of the role of management accounting in the strategic planning and control contexts and its linkage to strategic management, the budgetary control systems, and the various performance management and measurement frameworks.


The following topics will be covered. Timings are provisional.

1. Strategic management accounting (semester 1)
a) Strategy and social context
b) Strategic cost analysis e.g. Value chain, ABM, TOC, life cycle costing.
c) Inter-organisational accounting and the supply chain.
d) Market facing accounting e.g. target costing, customer relationship management
e) Role of accounting in strategic management
f) Social role and impact of accounting, e.g. sustainability, not-for-profit organisations.

2. Performance measurement and analysis (semester 2)

a) Performance measurement in commercial context: purpose, scope, behavioural issues, critique;
b) Budgets – role, impact and behavioural issues
c) Financial and non-financial measures and measurement systems: Benchmarking, Balanced Scorecard
d) Divisional performance measures – e.g. ROI, RI, EVA,
e) Transfer pricing
f) Public sector performance practices and issues

Module Skills

Skills Type Skills details
Application of Number * Develop an easy familiarity with numerical data sources and numerical data * Apply numerical data to problem solving with care and accuracy * Assess the reasonableness of and interpret numerical solutions * Support assertions/arguments with appropriately developed and presented numerical data * Calculate and use descriptive statistics
Communication * Develop confidence in and clarity of oral communication via example class/tutorial participation * Develop clarity and focus of written communication via development of answers to tutorial questions * Develop and use appropriate subject-specific vocabulary in oral and written communication
Improving own Learning and Performance * Identify and distil the key issues covered by lectures and tutorials * Identify and use a range of learning resources * Investigate benefits of small group working on tutorial preparation * Structure study to accommodate intensive learning
Information Technology * Use a variety of electronic web- and library-based resources to review available information and retrieve pertinent information * Use software (Excel) to complete elements of the tutorial questions (e.g., spreadsheets for ease of tabulated numerical calculations, production of summary statistics, production of graphs, etc.)
Personal Development and Career planning * Develop skills in management costing and decision making which are essential to the aspiring management accountant * Identify a variety of potential career routes within the accounting professional services sector
Problem solving * Identify the precise problem to be solved * Assess which data are pertinent to the problem * Recognize that alternative solution methods might be available * Select and apply appropriate methods for solving the problem * Assess the reasonableness of problem solutions and interpret those solutions
Research skills * Develop basic information accessing and reaching skills * Properly reference/attribute information sources * Select the most pertinent information for retrieval * Retrieve information * Re-assess the pertinence and assess the credibility of retrieved information
Subject Specific Skills * Develop competence in understanding and appropriately applying modern management accounting techniques in practice * Understand, analyze, interpret and synthesize between financial accounting, management accounting and market-based financial information * Make well-based financial recommendations and decisions * Bring financial analysis and decision making skills to the service of the business – in strategizing, marketing, operating, etc.
Team work * Develop experience of team work and develop team working skills via small group working on tutorial preparation


This module is at CQFW Level 6