BUU33521 Management Accounting for Business Decisions I
(5 ECTS)
Lecturer(s):
Deirdre Cogan
Office Hours: By Appointment (via email)
Pre-Requisite:
BUU22530 - Introduction to Accounting
Module Description:
This module will offer students an introduction to the role of management accounting within the modern organisation. Cost terms and concepts will be introduced, as well as the various techniques that aid decision making, such as cost-volume-profit (CVP) analysis, cost behaviour, pricing decisions and capital investment appraisals. The discipline of management accounting is an evolving one, and topical issues will be considered, including how to view and manage costs in a strategic sense.
Learning & Teaching Approach:
An emphasis will be placed on the practical application of the key principals, in the form of worked examples and case studies. This module is primarily focused on the practical application of techniques rather than an in-depth understanding of conventional cost accounting. Active participation will be required, i.e. preparation for and attendance at lectures, participation in class discussions and involvement in group work and discussions.
Learning Outcomes:
On successful completion of the module students should be able to:
1. Discuss the theories, concepts and methods pertaining to management accounting, and distinguish between management accounting and financial accounting.
2. Identify core cost terms and concepts, and describe the purposes for which cost information may be required.
3. Prepare break-even, contribution and profit-volume graphs, and apply these in a multiproduct setting.
4. Describe and apply the various approaches to pricing, including target-costing and cost-plus pricing.
5. Contrast activity-based and traditional costing systems, and explain why traditional systems can produce incomplete or incorrect information.
Recommended Texts/Key Reading:
Drury (2019), Management Accounting for Business (6th edition), South Western Cengage Learning
General Supplemental Readings
It is also recommended that students maintain an awareness of financial matters through regular use of the FT website, and sources such as investopedia.com and finance.yahoo.com.
Student Preparation for the Module:
Lecture slides will be available on Blackboard prior to each lecture. Students are expected to access and print off the lecture slides before each lecture and bring them to the relevant lecture. In this way students can maximise their contact hours, allowing additional critical notes to be taken. It is anticipated that this should allow the student to actively participate in lectures.
The lecturer will provide an explanation/discussion of the issues relevant to each topic on the module. Students are expected to research and read additional materials on each topic in their own private study time and to attempt the assigned questions for each topic. Lecture attendance is not part of evaluation in this course. However, attendance is strongly recommended due to the intensive course schedule.
Course Communication:
Administrative information and relevant changes (e.g., dates, times, venues, group membership, deadlines, etc.) will be posted on the course Blackboard page.
Students taking this course are responsible for
- checking their College email regularly
- checking the course Blackboard page regularly
- assuring that they have access to the course Blackboard page
Assessment:
Online Quiz [20%]: Will test topics lecture 1-6.
Examination [80%]: In person on campus exam that will test critical understanding and appropriate application of topics covered in the module. Date: December 2023/January 2024, precise venue and time to be announced in due course.
Students sitting supplemental examination: their mark will be weighted 100% based on that examination.