| This module is an introductory management accounting course. It is designed to provide students with a foundation in the preparation, selection and application of management and cost accounting information. The aim of the module is to develop the knowledge and skills of learners to select management and cost accounting techniques appropriate to particular circumstances, to apply these management and cost accounting techniques and to interpret the information generated by them.
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Role of the management accountant
The role and operating environment of a management accountant.
Cost Classification
Classify costs according to their function, nature or behaviourUnderstand the difference between product and period costs
Cost-Volume-Profit (CVP) Analysis
Distinguish between contribution and gross marginApply mark-up and margin principles to calculate the appropriate selling priceApply basic cost separation and estimation techniques (including the high/low method)Assumptions and limitations of CVP analysisCompute breakeven activity, margin of safety and target profit (in both monetary and unit terms) for a single product
Overhead and expense accounting
Prepare an overhead analysis sheet (summary sheet) to allocate and apportion costs to production and service departmentsUnderstand and apply the apportionment of service department costs using direct or step-down approachesCalculate the overhead absorption rate for each production departmentCalculate the over- and under-absorption of overheads
Job & Service Costing
Understand the principles of job costing and service costingCompute costs for jobs and services using appropriate techniques
Absorption & Variable Costing
The principles of variable costingPrepare profit statement using variable costing principlesUnderstand the principles of absorption costingPrepare profit statements using absorption and costing principlesReconcile profits recognised under variable costing to profits recognised under absorption costing
Functional Budgeting
Understand the process of business strategy formulation, its links to the budgetary process and the purposes of budgetingUnderstand the budgetary process (the budgetary cycle)Construct functional budgets for sales, materials, labour and overheads
Learners will be exposed to formal lectures / tutorials and will also be expected to engage in class discussions. The ability to apply the concepts and exercise judgment will be developed by problem solving. Feedback and support will be given in order to identify and solve problems.
| Module Content & Assessment | |
|---|---|
| Assessment Breakdown | % |
| Formal Examination | 70 |
| Other Assessment(s) | 30 |