SOAS University of London

School of Finance and Management

Management Accounting 2

Module Code:
FHEQ Level:
Year of study:
Year 2
Taught in:
Term 1

This module 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 module is taken in conjunction with Corporate Finance and Financial Accounting, which includes complementary coverage of investment appraisal and corporate finance.

Objectives and learning outcomes of the module

At the end of this module 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 module is assessed by:

  • 10% multiple-choice tests
  • 20% written coursework 
  • 70% one two hour examination

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