ACCT07036 2021 Introduction to Business Finance 2

Describe and evaluate the role of a management accountant within an organisation, the organisational requirements of this role and any possible ethical issues they face.

Identify, analyse and categorise costs and cost behaviour and explain the terminology used in cost accounting.

Apply and evaluate cost accounting techniques to calculate the cost of producing a product or providing a service.

Explore the various planning and control techniques utilised by managers of an organisation. Choose , calculate, and interpret these decision making techniques when appraising business choices.

Describe and evaluate the budgetary process, as a mechanism for organisations to develop and assess performance and prepare functional, cash and incremental budgets.

Comprises of lectures & tutorials and independent learning.

Written Final Exam

Moodle Quiz with theory and numerical content

Project

Written Exam and/ or Moodle Quiz/Project with theory and numerical content.

Describe and evaluate the role of a management accountant within an organisation, the organisational requirements of this role and any possible ethical issues they face. After studying this area, students should be able to:

• discuss the principles of management accounting and it’s position in an organisation; 
• explain the difference between management and financial accounting;
• identify that management accounting within an organisation is involved in planning - achieving the objectives of the organisation through budgetary planning and control, decision-making – providing detailed and timely information to owner and managers to make decisions, reporting – providing information for internal use within an organisation, performance measurement – both quantitative and qualitative performance and controlling operations and efficient use of resources.
• ensuring ethical standards in management accounting: competence, confidentiality, integrity and credibility.

Identify, analyse and categorise costs and cost behaviour and explain the terminology used in cost accounting. After studying this area, students should be able to:

• explain the need to allocate costs,
• classify costs into direct and indirect costs, period and product costs; variable, fixed, semi-variable and stepped costs; decision making costs and non-manufacturing costs.

Apply and evaluate cost accounting techniques to calculate the cost of producing a product or providing a service. After studying this area, students should be able to:

• Explain the different costing methodologies
• Discuss the components of product costing
• Identify the categories of cost allocation and the components of product costing

Explore the various planning and control techniques utilised by managers of an organisation. Choose, calculate, and interpret these decision making techniques when appraising business choices. After studying this area, students should be able to:

• Explain the meaning of relevance in management accounting.
• Discuss the use of standard and marginal costing in decision making.
• Provide advice with supporting quantitative analysis for decision making.
• Discuss why absorption costing is not used when making short-term decisions.
• Discuss the use of qualitative information in decision making.

Describe and evaluate the budgetary process, as a mechanism for organisations to develop and assess performance and prepare functional, cash and incremental budgets. After studying this area, students should be able to:

• Discuss the difference between the mission statement, strategy an budget setting
• Explain how budgets form part of the control process of a business
• Explain budgeting terminology
• Outline the stage in a budget process
• Prepare budgets