module specification

AC5066 - Management Accounting (2021/22)

Module specification Module approved to run in 2021/22
Module title Management Accounting
Module level Intermediate (05)
Credit rating for module 15
School Guildhall School of Business and Law
Total study hours 150
14 hours Assessment Preparation / Delivery
100 hours Guided independent study
36 hours Scheduled learning & teaching activities
Assessment components
Type Weighting Qualifying mark Description
Coursework 40%   Report - 1000 words
Unseen Examination 60%   End of semester examination - 2 hours
Running in 2021/22
Period Campus Day Time Module Leader
Spring semester North Tuesday Morning
Spring semester North Tuesday Afternoon

Module summary

This module builds on the foundation laid in Level 4’s Management Accounting Fundamentals. It is designed to help students to develop a sound understanding of the principles and techniques used by managers in planning, control, decision making and performance measurement. Students will also be able to understand the principles applied in job and service costing using both traditional absorption costing and the more recent activity based costing and information systems and technologies.

The module is directed at core accounting and finance students who intend to specialise in the field of accounting and finance after their degree. It is aimed that the module should provide them with the skills they need in the world of work when solving different business problems. Students’ skills in cost accounting will be developed through the module to enable them to plan, control, evaluate and measure performance.

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

  • application of knowledge and data presentation
  • communication skills including oral presentation
  • Interpersonal skills including working with others to achieve desired objectives.
  • Numeracy and interpreting management accounting information.



Cost Accounting Systems

  • Costing methods including Activity Based Costing. - LO1
  • Standard Costing and implementation of its systems. - LO5
  • Calculation of variances and reconciliation including planning and operational variances. - LO5
  • Simple Product mix analysis - LO1

Planning, Control Short term Decisions

  • Purpose of planning and control - LO2
  • 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.- LO3
  • Controllable and uncontrollable costs.
  • Introduction to relevant costs. - LO2

Performance Measurement and Evaluation

  • Introduction to performance measurement in both manufacturing and service industries - LO4
  • Introduction to performance evaluation using key metrics, financial and non-financial indicators including the balanced scorecard - LO4
  • Consequences of a divisional structure
  • Advantages and disadvantages of return on investment and residual income.
  • Transfer pricing methods and objectives - LO4
  • Working capital management including working capital ratios and stock control - LO4

Information systems and technologies

  • Discuss types of Information systems and technologies in organisations - LO4
  • Identify sources of information and their relative importance in management decisions in terms of costs and benefits - LO6
  • Discuss the strategic use of accounting information requirements, big data analysis and risks to organisation in its implementation

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 to do the following:

LO1 – Evaluate the nature and problems of traditional costing methods and activity based  costing.
LO2 – Calculate and evaluate budgets including functional budgets.

LO3 – Critically appraise alternatives to traditional budgeting techniques and their  behavioural implications.
LO4 – Apply and evaluate performance measures including financial and non-financial  measures – Balanced score card.
LO5 – Demonstrate a good understanding of the cost control techniques used in  organisations. 
LO6 – Understand the importance of information systems and technologies in
           management decision making.

Assessment strategy

The assessment strategy for the module will comprise two elements: a report of 40% which will assess management accounting techniques and information systems and technologies in business environment, and the end-of-year examination which will assess all the learning outcomes.


Core Textbooks

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, McGraw Hill, 2019.

Other Textbooks

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
Accountancy Age
Financial Times

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

Electronic Databases:  FAME