Description

Introduction to Management Accounting

Description - summary of the module content

Module description

Management accounting is an important tool for decision making within an organisation. This module illustrates the application of accounting techniques through the use of case studies and real life examples. This module is designed for those who want to study an accounting degree. At the end of this course students will have a good understanding of the basic techniques of management accounting and their application along with an understanding of both the qualitive and quantitative aspects of internal business decision making.

This module is the equivalent of BEA 1009. 

Module aims - intentions of the module

This module aims to provide students with a good understanding of the key topics covered in management accounting.  The numerical and technical information given is not too complex, which will allow students to apply the techniques and skills learnt more easily.

Intended Learning Outcomes (ILOs)

ILO: Module-specific skills

On successfully completing the module you will be able to...

• 1. Describe the purpose and role of cost management accounting
• 2. Identify different cost behaviours and costing systems
• 3. Apply the different techniques used in accounting for materials, labour and production overheads
• 4. Describe job and batch costing and prepare accounts in job costing situations
• 5. Apply management accounting information for short-run decision making
• 6. Apply management accounting information for long-run decision making, employing basic investment appraisal techniques
• 7. Explain the role of budgeting in financial planning and control, and explain different budget types
• 8. Prepare budgets for sales, production materials (usage and purchases), labour and overheads
• 9. Explain and prepare fixed, flexible and flexed budgets
• 10. Explain the purpose and principles of standard costing
• 11. Calculate and interpret variances for: sales, materials, labour, variable overheads and fixed overheads

ILO: Discipline-specific skills

On successfully completing the module you will be able to...

• 12. Show understanding of how managers use accounting information to aid decision making, planning and control
• 13. Apply management accounting concepts and practices to analyse business problems
• 14. Identify and present appropriate information to assist management with controlling the business and taking financial decisions

ILO: Personal and key skills

On successfully completing the module you will be able to...

• 15. Demonstrate basic written communication skills
• 16. Demonstrate basic problem solving skills

Syllabus plan

Syllabus plan

• Introduction to management accounting

Costing

• Cost classification and costing situations
• Accounting for materials, labour and overheads
• Activity-based costing
• Absorption vs. marginal costing
• Job costs and stock valuation: job costing

Decision making

• Short term decision making: CVP, breakeven analysis, limiting factor analysis
• Long term decision making: investment appraisal
• The balanced scorecard

Planning and Control

• Budgeting
• Standard costing and variance analysis
• Working capital management

Learning and teaching

Learning activities and teaching methods (given in hours of study time)

Details of learning activities and teaching methods

Assessment

Formative assessment

Summative assessment (% of credit)

Details of summative assessment

Re-assessment

Details of re-assessment (where required by referral or deferral)

Re-assessment notes

The pass mark for award of credit in this module is 40%. Referral or deferral is a process whereby a further attempt at the module examination, following an initial failure, is permitted without the requirement to repeat any attendance. This will constitute a second formal examination - coursework will not be included in the re-assessment. Resubmission of coursework is impractical for two reasons; coursework answers and feedback are given to students after marking. All summative coursework must be completed before entitlement to a referral or deferral.

The grade for the re-assessment, and therefore the module grade, will be capped at 40%.  

Resources

Indicative learning resources - Basic reading

Schemes of work are given to students at the beginning of the module with suggested text as preparatory reading.

Attrill & McLaney (2012). Management Accounting for Business Decisions Ed.7. Harlow: Pearson.

Indicative learning resources - Web based and electronic resources

ELE – 

http://vle.exeter.ac.uk/course/view.php?id=3291 (Cohort 1)

http://vle.exeter.ac.uk/course/view.php?id=3292 (Cohort 2)

ELE will have copies of lecture notes, PowerPoint presentations, and a number of relevant articles.  Students will make use of the discussion forum posted on ELE, in addition to other resources (online quizzes). 

Module has an active ELE page

Indicative learning resources - Other resources

Textbooks from the INTO resource centre

Web-based and electronic resources including MyAccountingLab

Key words search

Management accounting; costing; Cost classification;  materials; labour; overheads; activity-based costing; Absorption; marginal; Job costs; stock valuation; short term decision making; CVP; breakeven analysis; limiting factor analysis; long term decision making; investment appraisal; planning; control; budgeting; standard costing; variance analysis; balanced scorecard.