Module Information
Module Identifier
AC33100
Module Title
Management Accounting 2
Academic Year
2021/2022
Co-ordinator
Semester
Semester 1 (Taught over 2 semesters)
Other Staff
Course Delivery
Assessment
Due to Covid-19 students should refer to the module Blackboard pages for assessment details
| Assessment Type | Assessment length / details | Proportion |
|---|---|---|
| Semester Exam | 1.5 Hours Class Test | 30% |
| Semester Exam | 3 Hours Unseen written examination | 70% |
| Supplementary Exam | 1.5 Hours Test Repeat failed element | 30% |
| Supplementary Exam | 3 Hours Unseen written examination Repeat failed element | 70% |
Learning Outcomes
On successful completion of this module students should be able to:
- Discuss and evaluate how costs are constructed via the organisation
* Analyse, select and calculate appropriate costing method in a given situation
* Discuss and evaluate how the choice of costing techniques can impact on accountability and performance measurement
* Explain and evaluate the behavioural aspects of management accounting
* Evaluate and analyse a decision scenario using an appropriate accounting technique
* Discuss and evaluate limitations of accounting techniques
* Evaluate and discuss the impact of working capital management
* Apply analytical techniques to managerial and financial problems
Brief description
This module aims to build upon the foundation of part 1, deepening and extending knowledge of the key concepts and techniques of management accounting, and developing operational research models with application within the management accounting environment.
The module focuses upon aspects of accounting which support the exercise of management control and decision making. A thorough grounding in costing techniques will provide students with the necessary foundation for examination of accounting techniques appropriate to pricing and strategic decision making, cost management, planning and control.
Students will gain a thorough understanding of fundamental accounting techniques and their application. In analysing the uses and limitations of these techniques, students will draw on both theory and practice, and this will in turn support critical analysis of both specific accounting problems and the broader role of accounting.
The module focuses upon aspects of accounting which support the exercise of management control and decision making. A thorough grounding in costing techniques will provide students with the necessary foundation for examination of accounting techniques appropriate to pricing and strategic decision making, cost management, planning and control.
Students will gain a thorough understanding of fundamental accounting techniques and their application. In analysing the uses and limitations of these techniques, students will draw on both theory and practice, and this will in turn support critical analysis of both specific accounting problems and the broader role of accounting.
Aims
This module is a core module to the SMB N400 (Accounting and Finance), as well as all of the Accounting and Finance 'rajor? and 'rinor? schemes.
Further, the module contributes to the maintenance of (or is anticipated to contribute to the achievement of [further]) accreditation from professional accountancy bodies, including:
Further, the module contributes to the maintenance of (or is anticipated to contribute to the achievement of [further]) accreditation from professional accountancy bodies, including:
- Institute of Chartered Accountants in England and Wales
- Association of Chartered Certified Accountants
- Chartered Institute of Management Accountants
- Institute of Chartered Accountants of Scotland
Content
1. Costing (lectures 1 – 10)
• Overhead and product cost – advanced techniques, effects and issues
• Cost accounting - job costing and process costing
• Joint cost problems
2. Working capital management (lectures 11-12)
• Inventory management
• EOQ
3. Budgeting (lectures 13-19)
• Standard cost budgets and advanced variance analysis
• Behavioural aspects of budgeting
• Alternative approaches to budgeting
4.Advanced costing (lectures 20-25)
• Activity based costing
• Critiques and alternative approaches to costing
5.Management Decision Making (lectures 25-36)
• Relevant cost analysis
• Pricing decisions
• Impact of non-linear cost behaviour
• Decisions under uncertainty
• Application of operations research techniques
• Overhead and product cost – advanced techniques, effects and issues
• Cost accounting - job costing and process costing
• Joint cost problems
2. Working capital management (lectures 11-12)
• Inventory management
• EOQ
3. Budgeting (lectures 13-19)
• Standard cost budgets and advanced variance analysis
• Behavioural aspects of budgeting
• Alternative approaches to budgeting
4.Advanced costing (lectures 20-25)
• Activity based costing
• Critiques and alternative approaches to costing
5.Management Decision Making (lectures 25-36)
• Relevant cost analysis
• Pricing decisions
• Impact of non-linear cost behaviour
• Decisions under uncertainty
• Application of operations research techniques
Module Skills
| Skills Type | Skills details |
|---|---|
| Application of Number | * Develop an easy familiarity with numerical data sources and numerical data * Apply numerical data to problem solving with care and accuracy * Assess the reasonableness of and interpret numerical solutions * Support assertions/arguments with appropriately developed and presented numerical data * Calculate and use descriptive statistics |
| Communication | * Develop confidence and clarity of oral communication via example class/tutorial participation * Develop clarity and focus of written communication via development of answers to tutorial questions * Develop and use appropriate subject-specific vocabulary in oral and written communication |
| Improving own Learning and Performance | * Identify and distil the key issues covered by lectures and tutorials * Identify and use a range of learning resources * Investigate benefits of small group working on tutorial preparation * Structure study to accommodate intensive learning |
| Information Technology | * Use a variety of electronic web- and library-based resources to review available information and retrieve pertinent information * Use software (Excel) to complete elements of the tutorial questions (e.g., spreadsheets for ease of tabulated numerical calculations, production of summary statistics, production of graphs, etc.) |
| Personal Development and Career planning | * Develop skills in management costing and decision making which are essential to the aspiring management accountant * Identify a variety of potential career routes within the accounting professional services sector |
| Problem solving | * Identify the precise problem to be solved * Assess which data are pertinent to the problem * Recognize that alternative solution methods might be available * Apply analytical techniques to managerial and financial problems * Select and apply appropriate methods for solving the problem * Assess the reasonableness of problem solutions and interpret those solutions |
| Research skills | * Develop basic information accessing and reaching skills * Properly reference/attribute information sources * Select the most pertinent information for retrieval * Retrieve information * Re-assess the pertinence and assess the credibility of retrieved information |
| Subject Specific Skills | * Develop competence in understanding and appropriately applying investment/financial mathematics * Understand, analyze, interpret and synthesize between financial accounting, management accounting and market-based financial information * Make well-based financial recommendations and decisions * Bring financial analysis and decision making skills to the service of the business – in strategizing, marketing, operating, etc. |
| Team work | * Develop experience of team work and develop team working skills via small group working on tutorial preparation |
Notes
This module is at CQFW Level 6