BUU33521 Management Accounting for Business Decisions II
(5 ECTS credits)
Dr. Supun Chandrasena
The module builds on previous experience in management accounting, measuring costs and revenues for the decision making process. The module aims to examine and understand the role of budgeting; transfer pricing; variance analysis; divisional performance and strategic financial planning as a critical financial management tools. There is also a focus on the importance of non-financial performance measures.
Learning & Teaching Approach
Lectures will involve a mixture of lectures, group discussion, worked-through examples and questions. We will review scenarios and compare theory to real life examples. Active participation will be required, i.e. preparation in and attendance at lectures, contribution to class discussions and involvement in group work. Practice problems have been assigned for each topic in the syllabus, and students are recommended to do these before each lecture. This module is an applied field, it is difficult to understand without practicing and applying the knowledge, and therefore examinations will be based on applied knowledge, not general recall. Students will be encouraged to explore and develop their business and personal potential throughout this module.
- Possess an up-to-date understanding of the various budgeting techniques available to an organisation.
- Calculate, analyse and apply variances as an aid to decision-making, and explain the importance of qualitative factors in this area.
- Distinguish between a traditional management accounting system and strategic cost management and understand and apply Life-cycle costing, Environmental accounting in a variety of practical business contexts
- Advise senior management on optimal transfer pricing strategies.
- Measure and optimise organisational performance through the use of appropriate strategic performance measurement techniques.
Recommended Texts/Key Reading:
Required Core Course Textbook:
Drury (2016), Management Accounting for Business (6th edition), South Western Cengage Learning
General Supplemental Readings
Hofstede, G. (1981). Management control of public and not-for-profit activities. Accounting, Organizations and society, 6(3), 193-211.
Theodore H. Poister (2003); measuring performance in public and nonprofit organizations, Wiley.
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.
Examination [100%]: Will test critical understanding and appropriate application of topics covered in the module. Precise venue and time to be announced.