Module catalogue

AC6066 - Advanced Management Accounting (2022/23)

Module specification

Module approved to run in 2022/23

Module title

Advanced Management Accounting

Module level

Honours (06)

Credit rating for module

School

Guildhall School of Business and Law

Total study hours

150

9 hours	Assessment Preparation / Delivery
105 hours	Guided independent study
36 hours	Scheduled learning & teaching activities

Assessment components

Type	Weighting	Qualifying mark	Description
Coursework	40%		Individual report - 1000 words.
Unseen Examination	60%		End of semester examination - 2 hours.

Running in 2022/23

(Please note that module timeslots are subject to change)

Period	Campus	Day	Time	Module Leader
Spring semester	North	Thursday	Afternoon
Spring semester	North	Thursday	Morning

Module summary

This module focuses on the strategic aspects of management accounting. It will explore and critically evaluate a number of management accounting techniques encountered in levels 4 (Management Accounting Fundamentals or its equivalent) and level 5 (Management Accounting or its equivalent). 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.

Syllabus

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 -
life cycle costing
target costing and
experience curves (learning curves) in costs estimation - LO2

· Discuss and apply the techniques to manage
risk and uncertainty.
maximax
maximin
minimax regret
decision trees and expected values - LO3

· 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.

· Ethical considerations. - LO4

Balance of independent study and scheduled teaching activity

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.

Learning outcomes

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 or its equivalent.
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.

Assessment strategy

The assessment strategy for the module will comprise two elements.
The first assessment component comprises an individual report of 40%. For this assessment component, students will be set a coursework assignment which requires them to produce a written work of 1000 words.
The second assessment component comprises a 2-hour end of semester examination, and the end-of-year examination will assess the management accounting learning outcomes.

Bibliography

Library Talis Link:
https://rl.talis.com/3/londonmet/lists/AB293EC8-B6F2-05AE-7B5C-9587224204F7.html?login=1

Essential readings

Drury C, Management and Cost Accounting, 10th edition, (2018), published by Cengage Learning, ISBN-13: 9781473748873

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