Management Accounting 1

This module provides students with an introduction to management accounting in the context of business decisions, emphasising the skills and knowledge that will be used in the work environment. Core topics include the nature of business decisions, short-term and long-term/strategic decision-making models, cost management ideas, and budgeting and associated performance measurement practices.

Objectives and learning outcomes of the module

On successful completion of this module a student will be able to:

• Explain the nature and the processes of businesses and how management accounting plays important roles in their decision-making scenarios
• Explain how management accounting contributes to financial reporting, how it is different from financial accounting, and how management accounting ideas and practices are relevant to business decisions: short term and strategic decisions
• Define and explain cost accounting terminologies and methods, their rationale of classification, and their relevance to business decisions
• Apply management accounting ideas and practices in making short- term/on-going decisions in businesses
• Define and explain inventory management ideas and methods (including Just-in-Time) and their uses in business decisions
• Apply management accounting ideas and practices in making strategic/long-term business decisions
• Apply cost management ideas in determining product/service costs and in making business decisions, with an emphasis on Activity-based Costing (ABC)
• Use the ideas and practices of budgeting in a business decision-making context, with an emphasis on flexible budgeting, standard costing, variance analysis, and performance management, and their inherent problems

Disclaimer

Important notice regarding changes to programmes and modules