ACCT06038 2022 Management Accounting

Explain the nature of cost and management accounting and differentiate from financial accounting

Identify and quantify material and labour resources consumed in production.

Calculate the cost of producing a product or providing a service using absorption costing principles

Compare and contrast product unit costs from traditional absorption costing versus Activity Based Costing (ABC)

Identify the procedures involved in the preparation of budgets and prepare functional and cash budgets

Apply appropriate techniques of cost and management accounting to short-term decision making situations.

Communicate information individually or in teams using written, visual and numerical forms

The student will engage with the content of the module through pre-lecture reading, informative video presentations, lectures and quizzes.

The student will develop an understanding of module content through technical articles and use of software applications to complete and review examples.

The student will apply their learning through completion of practical exercises.

Theoretical and numerical quizzes and exam.

Theoretical and numerical quizzes and / or exam.

LO1 - Explain the nature of cost and management accounting and differentiate from financial accounting:

• Differentiate between management and financial accounting information,
• Define and classify various costs, their behaviour and graphical representation,
• Split mixed costs and predict future costs.

LO2 - Identify and quantify material and labour resources consumed in production:

• Calculate inventory levels and identify inventory holding and ordering costs,
• Derive inventory issue and closing valuations in various inventory control systems,
• Calculate labour cost under different systems,
• Define merits and drawbacks of different labour cost systems.

LO3 - Calculate the cost of producing a product or providing a service using absorption costing principles:

• Overhead allocation and apportionment including secondary apportionment,
• Formulate overhead absorption rates,
• Calculate cost of job, batch and services.

LO4 - Compare and contrast product unit costs from traditional absorption costing versus Activity Based Costing (ABC):

• Calculate unit cost from traditional absorption costing,
• Calculate unit cost from ABC and compare to traditional,
• Explain Activity Based Management (ABM).

LO5 - Identify the procedures involved in the preparation of functional and cash budgets:

• Prepare functional budget,
• Prepare cash budget,
• Define budgetary theory.

LO6 - Apply appropriate techniques of cost and management accounting to short-term decision-making situations:

• Calculate marginal cost, break-even point, margin of safety and target profit,
• Represent CVP in graphical format,
• Define relevant costs and compare with absorption costing and variable costing,
• Derive and recommend courses of action using relevant cost for various short-term decision making situations such as  - Limiting factor, special contract.

LO7 - Communicate information using written, visual and numerical forms:

• Problem solving in-class group work.