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Department of Financial & Management Studies (DeFiMS)

Managerial accounting

Course Code:
Unit value:
Year of study:
Year 2
Taught in:
Term 1
This course builds on material covered in Introduction to Accounting on the principles and practice of management accounting. It aims to deepen students’ knowledge and understanding of more advanced concepts in management accounting and their use in planning, decision-making and control within business organisations. The main topics covered include: appraisal of different measures of costs and their applications, including cost estimation, cost-volume-profit analysis, make or buy decisions and pricing; techniques for budgeting and budgetary control; advanced investment appraisal; performance appraisal and management accounting systems; critical assessment of management accounting systems. Practical examples and case studies are used to illustrate key concepts and themes. This course is taken in conjunction with Corporate Finance and Financial Accounting, which includes complementary coverage of investment appraisal and corporate finance.


15 103 0001 - Introduction to Accounting and 15 103 0002 - Understanding Company Accounts

Objectives and learning outcomes of the course

At the end of this course students should be able to:

  • Measure costs using a range of techniques;
  • Assess and appraise costs measures and their use in management accounting systems and decision-making;
  • Understand budgeting techniques and their use in management accounting and managerial decision-making;
  • Understand the design and operation of incentive systems;
  • Demonstrate knowledge of the use and effectiveness of performance evaluation systems, including behavioural aspects;
  • Show an appreciation of the interaction between accounting information systems and managerial decision-making;
  • Show an appreciation of the role of the management accountant within management;
  • Demonstrate analytical and problem solving abilities for a range of management accounting topics/problems.

Method of assessment

This course is assessed by 30% written coursework and 70% by one two hour examination

Suggested reading

Indicative Readings:

  • Atrill P& McLaney E, Management Acctg for Decision Makers, (7th ed) Harlow, Pearson, 2012 ISBN 0 273 76226 5

Supplementary Readings:

  • Atkinson, A, Kaplan, R Matsumura, E and Young, S (2007) Management Accounting, 5th Edition, Pearson Education
  • Young, M (2007) Readings in Management Accounting, 5th Edition, Prentice Hall. New Jersey
  • Drury, C (2008) Management and Cost Accounting, 7th Edition, Thompson learning, London.Kaplan, R and Atkinson, A (1998) Advanced Management Accounting, 3rd Edition, Prentice Hall, New Jersey
  • Emmanuel, C, Otley, K and Merchant, D (1990) Accounting for Management Control, Thompson Learning, London. Reprinted in 2004
  • Zimmerman, J (2005) Accounting for Decision Making and Control, 5th Edition, McGraw-Hill, London and NewYork
  • Hopper, T, Scapens, R and Northcott, D (2007) Issues in Management Accounting, 3rd Edition, Prentice hall, London
  • Glautier M W E and Underdown, B, (2000), Accounting Theory and Practice, 7th Edition London, Financial Times/Prentice Hall
  • Pauline Weetman, (2006), Financial and Management Accounting: An Introduction, 4th edition, London, Financial Times/Prentice Hall
  • Nobes, C and Parker, R (2006) Comparative International Accounting, 2nd Edition, Pearson Education. Part III Harmonisation and Transition in Europe and East Asia
  • Fanning, D, Pendlebury, M and Groves, R (2003) Company Accounts: Analysis, Interpretation, Understanding, Thompson Learning, London
  • Kimmel, P, Weygandt, J and Kieso, D (2008) Accounting, 3rd Edition, Wiley, Chichester.
    Collier, P (2006) Accounting for Managers: Interpreting Accounting for Decision-Making, 2nd Edition, Wiley, Chichester
  • Ernst & Young International Financial Reporting Group (2008) International Generally Accepted Accounting Practice (GAAP) under International Financial Reporting Standards 2008, John Wiley, Chichester
  • Choi, F, Frost, C and Meek, G (2001) International Accounting, Prentice Hall, New Jersey
  • Spiceland, J, Sepe, J and Tomassini, L (2007) Intermediate Accounting. McGraw-Hill International Edition, McGraw-Hill, London and New York


  • The Accounting Review
  • Journal of Accounting and Economics
  • Journal of Finance
  • Journal of Accounting Research
  • Journal of Financial and Quantitative Analysis
  • Review of Financial Studies
  • Journal of Business Finance and Accounting
  • Journal of Corporate Finance
  • Critical perspectives of Accounting
  • Management Accounting Research