AC5002 - Management Accounting (2022/23)
|Module specification||Module approved to run in 2022/23|
|Module title||Management Accounting|
|Module level||Intermediate (05)|
|Credit rating for module||30|
|School||Guildhall School of Business and Law|
|Total study hours||300|
|Running in 2022/23(Please note that module timeslots are subject to change)||No instances running in the year|
This module helps students to develop a sound understanding of the principles and theories in cost accounting, forecasting, planning and control and performance measurement. Students will also be able to apply underlying concepts and principles in an employment context and identify the legal issues that might arise.
Prior learning requirements
Introduction to Accounting
The module is directed primarily at core accounting and finance students in developing their abilities to evaluate different approaches to problem solving acquired in Introduction to Accounting.
The module aims to develop students’ skills in cost accounting systems, forecasting, planning and control and performance measurement and evaluation. Students will also be able to apply underlying concepts and principles in an employment context and identify the legal issues that might arise.
It also aims to develop students' skills, in particular :
- Application of Knowledge and Presenting Data
- communication skills including oral presentation
- interpersonal skills, including working with others
- Numeracy/quantitative skills
Cost Accounting Systems
- Costing methods including Activity-Based Costing (ABC)
- Standard costing and implementation of its systems
- Calculation of Variances and reconciliation including planning and operational variances
Simple product mix analysis
Forecasting, Planning and Control
- Purpose of planning and control
- Limiting factors and scarce resources including Linear programming methods
- Creation of budgets such as incremental budgets, zero-based budgets and activity-based budgets and impact of behaviour on budgeting
- Time series analysis
- Responsibility Accounting
- Controllable and uncontrollable costs
- Introduction to relevant costs
Performance Measurement and Evaluation
- Introduction to performance measurement in both manufacturing and service industries
- Introduction to performance evaluation using key metrics, financial and non-financial indicators including the balanced scorecard
- Consequences of a divisional structure
- Advantages and disadvantages of return on investment and residual income.
- Working capital management including working capital ratios and stock control
- Contract of employment: formation, content and employment status
- Termination of employment: unfair dismissal, wrongful dismissal, constructive dismissal, redundancy and available remedies
- Impact of health and safety law on employers and employees.
Learning and teaching
A 1.5-hour lecture followed by a 1.5-hour tutorial. Lectures will be used to convey management accounting information, situations and problems and seminars will concentrate on problem resolution and practises. The lectures and seminar will help students to develop a sound understanding of the principles and skills in management accounting and an ability to apply underlying concepts and principles in an employment context. The students will also be able to understand legal issues arise in employment.
On successful completion of this Module, students will be able to:
- Evaluate the nature and problems of traditional costing methods and activity-based costing (ABC).
- Calculate and evaluate budgets including functional budgets.
- Critically appraise alternatives to traditional budgeting techniques and their behavioural implications.
- Apply and evaluate performance measures including financial and non-financial measures; the consequences of a divisional structure including measurement of divisional performance.
- Demonstrate knowledge and understanding of the basic legal principles of employment law and an ability to analyse and critically interpret legal issues which arise in an employment context.
Formal Assessment will comprise of Coursework (30%), In-class test (20%) and Written Examination (50%). The coursework comprises a 10-min oral presentation and a 1,000-word report which require students to analyse the skills required for their future career and legal issues that might arise.
The 1-hour in-class test will review the contents covered in the first half of the teaching weeks and the 2-hour final exam comprises numerical and discursive questions. Law assessments will be integrated into the accounting assessments.
To pass the module, a student must obtain an overall 40% pass mark.
Colin Drury, (2011). Management and Cost Accounting (7th edition), Cengage Learning EMEA
Horngren, C.T., Bhimani, A, Datar, S and Foster, G. (2005), Management and Cost Accounting (3rd edition), Financial Times/Prentice Hall.
Smith, KT, Smith, LM and Smith, L. (2000), Microsoft Excel for Accounting Principles, Prentice Hall: New Jersey.
Sargeant, M. and Lewis, D. (2010), Employment Law (5th edition), Pearson Education.
Selwyn, N. (2010), Selwyn’s Law of Employment (16th edition), Oxford University Press.
The LMBS librarian team have developed this resource to assist with journal location: http://learning.londonmet.ac.uk/library/Glomaker/journals.html
Link to CIMA: http://www.cimaglobal.com/Students/