AC4053 - Management Accounting Fundamentals (2021/22)
|Module specification||Module approved to run in 2021/22|
|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|
|Running in 2021/22||
The module hopes to lay the foundation for students to understand the fundamental knowledge and techniques, which underpin management accounting. The module will cover the following salient areas of management accounting:
• Costs and Cost Classification including cost behaviour
• Tools and techniques used in planning, control and decision making
• Short-term decision-making techniques
• Capital Investment Appraisal techniques
The module aims to:
1. Explain the role of management accounting, the classification of costs in relation to output, activity level and decision making.
2. Prepare overhead cost statements in the attempt to work the full cost of products, services and activities.
3. Apply the concept of break-even analysis in short term decision making.
4. Understand short-term decision-making techniques of Make or Buy, Shutdown, Accept/Reject, Pricing etc.
5. Be able to calculate simple variances for cost control.
1. Introduction to Management Accounting and Cost classification
2. Cost identification and cost behaviour for planning
3. Control and decision- making
4. The techniques of Marginal and Absorption costing
5. Traditional overhead accounting and Activity Based Costing
6. Break-even analysis and budgeting (how and when to use them in a work environment)
7. Techniques used by managers in short-term decision making with pricing, investment appraisal techniques and performance evaluation.
Learning Outcomes LO 1 - 4
Balance of independent study and scheduled teaching activity
Scheduled teaching activity is a weekly one-hour lecture and a two-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.
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.
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.
The assessment strategy for the module will comprise an end of semester examination for 100% which will assess basic management accounting techniques and the management accounting learning outcomes.
Reading List Talis Link:
Management Accounting, W Seal, Rohde, C, R H Garrison and E W Noreen, 6th Edition, McGraw Hill, 2019.
Management Accounting, P Weetman, FT Prentice Hall, 2010.
Employability and Reflective resources :
Financial Reporting Council www.frc.org.uk
Accountancy Age www.accountancyage.com
Financial Times www.ft.com
Library Journal Databases: Academic Search Complete, Business Source Ultimate, Emerald Management, Science Direct
Electronic Databases: FAME