module specification

This module focuses on the strategic aspects on management accounting. It will explore and critically evaluate a number of management accounting techniques encountered in levels 4 (Management Accounting Fundamentals) and level 5 (Management Accounting). In addition, it will develop students’ knowledge and understanding of the theoretical models, analytical methods and practical issues of a number of techniques used by managers in planning, performance evaluation and long-term decision making in an ever-changing business environment. The module will also take a view on the role of management accountants in both profit seeking and not-for-profit organisations in the globalised world where businesses operate.

This Accounting module is very relevant for students who intend to follow a career in Management Accounting after their studies.

The module aims to develop students’ skills in the following areas:

- Apply the skills learnt in Levels 4 and 5 in a strategic context that provides a sound foundation for higher studies.
- Develop practical management accounting skills that are transferable into employment; work situations.
- Develop students’ knowledge and critical understanding of the theoretical models, analytical methods and practical aspects of decision making in management accounting in competitive business environments.
- Evaluate financial and non-financial evidence including arguments and assumptions in order to reach objective conclusions.

The role of the management accountant and the relevance of management accounting information.
How strategic management accounting fits into an organisation’s strategic framework.
External strategic management accounting information and environmental accounting.
Internal strategic management accounting information.
Information systems and strategies (LO1)

· Selecting product pricing strategies,
- value analysis of product attributes,
- determination of product costs,
- price elasticity of demand and calculations
- prices strategies, e.g. market skimming and penetration pricing (LO2)
- life cycle costing
- target costing and
- experience curves (learning curves) in costs estimation

· Discuss and apply the techniques to manage
  risk and uncertainty.
- maximax
- maximin
- minimax regret
- decision trees and expected values
· Discuss the issues with Quality and
  throughput accounting in cost management
· Time and strategy issues in cost
  management.
· A critical review of financial and non-financial performance measures including the balanced scorecard, results and determinants framework
· Decision making techniques within a strategic remit including project abandonment, post completion audit. (LO3)

· Ethical considerations. (LO4)

Scheduled teaching activity is a weekly two hours lecture and one hour seminar. 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

On successful completion of this module, students will be able:

LO1 - Appreciate the role of the management accountant in the strategic planning process, and apply strategically the management accounting techniques studied at Level 4 & 5.
LO2 - Evaluate critically management accounting solutions for different types of  organisational situations and problems.
LO3 - Produce the ‘optimum’ pricing/volume strategies over the life of a product and  Performance Measurement.
LO4 - Appreciate the ethical issues and problems involved in being a management  accountant.

Core Textbooks

Drury C, Management and Cost Accounting, 12th edition, 2024, published by Cengage Learning, ISBN-  9781473791244

Management Accounting, W Seal, Rohde, C, R H Garrison and E W Noreen, 6th Edition, McGraw Hill, 2019.

Recommended readings
Accounting for Management Decisions, Arnold, J & Turley, S, 3rd edition, (1996), published by Pearson Education, ISBN-13: 9780133088182
Management Accounting, P Weetman, FT Prentice Hall, (2010).
Management Accounting for Decision Makers, Atrill, Peter, 8th ed, (2015).
Cost and Management Accounting: An Introduction, Colin Drury, 8th ed, (2015).
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
PQ Magazine https://www.pqmagazine.com/

Journals: 
Library Journal Databases:  Academic Search Complete, Business Source Ultimate, Emerald Management, Science Direct

Websites:
Electronic Databases:  FAME