AC4053 - Management Accounting Fundamentals (2025/26)
| Module specification | Module approved to run in 2025/26 | |||||||||||||||
| Module title | Management Accounting Fundamentals | |||||||||||||||
| Module level | Certificate (04) | |||||||||||||||
| Credit rating for module | 15 | |||||||||||||||
| School | Guildhall School of Business and Law | |||||||||||||||
| Total study hours | 150 | |||||||||||||||
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| Assessment components |
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| Running in 2025/26(Please note that module timeslots are subject to change) |
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Module summary
The module aims to establish a foundation for students to grasp the essential knowledge and techniques that form the basis of management accounting. You will cover the following key areas of management accounting:
• Cost classification and behaviour
• Tools and techniques for planning, control, and decision-making
• Techniques for short-term decision-making
• Capital investment appraisal methods
The module has the following aims:
1. You will explain the function of management accounting and how costs are classified based on output, activity level, and decision-making.
2. You will prepare overhead cost statements to determine the total costs of products, services, and activities.
3. You will apply break-even analysis in short-term decision-making.
4. You will understand the short-term decision-making techniques such as Make or Buy, Shutdown, Accept/Reject, and Pricing.
5. You will calculate simple variances for effective cost control.
6. You will develop essential analytical skills to evaluate financial information and make informed management decisions.
Syllabus
1. Introduction to Management Accounting and Cost classification – LO1
2. Cost identification and cost behaviour for planning – LO2
3. Control and decision- making – LO2
4. The techniques of Marginal and Absorption costing – LO3
5. Traditional overhead accounting and Activity Based Costing – LO3
6. Break-even analysis and budgeting (how and when to use them in a work environment) - LO3
7. Techniques used by managers in short-term decision making with pricing, investment appraisal techniques and performance evaluation. – LO4
Balance of independent study and scheduled teaching activity
Scheduled teaching activity is a weekly one-hour lecture and a two-hour seminar / 3 hour workshop Independent study is supported by practical seminar questions, past exam questions, practice questions in the recommended textbooks and past examination papers with suggested solutions on the websites of ACCA and CIMA. Relevant learning resources will be available on Weblearn.
The course instructor is available outside class during office hours. Students will be fully supported in the preparation of the written exam. There will be regular opportunities for feedback and opportunity for formative assessment during the Reading Week.
Learning outcomes
On successful completion of this module, students should be able:
1. Comprehend the role of management accounting within the wider organisation’s management system.
2. Classify cost for planning, control and decision making.
3. Understand the principles involved in cost estimation for planning, control and decision-making and the techniques used in marginal and absorption costing.
4. Understand the methods used in capital budgeting and short-term decision making.
Bibliography
Reading List Talis Link:
https://rl.talis.com/3/londonmet/lists/BBAD634D-4563-8FC6-6F93-4757194677B2.html
Textbooks:
Core textbook
Management Accounting, W Seal, Rohde, C, R H Garrison and E W Noreen, 6th Edition, McGraw Hill, 2019.
Other Texts
Management Accounting, P Weetman, FT Prentice Hall, 2010.
Employability and Reflective resources:
Financial Reporting Council www.frc.org.uk
ICAEW www.icaew.com
ACCA www.accaglobal.com
CIMA www.cimaglobal.com
Accountancy Age www.accountancyage.com
Financial Times www.ft.com
Journals:
Library Journal Databases: Academic Search Complete, Business Source Ultimate, Emerald Management, Science Direct
Websites:
Electronic Databases: FAME