AC211 Management Accounting

DESCRIPTION

This unit is designed to introduce students to the planning, decision making and performance evaluation roles of management within organisations. The unit specifically aims to provide the relevant accounting tools to assist management with those roles. Primarily the unit deals with the provision and analysis of information to internal users. This information is both financial and non-financial. Exposure to these tools develops analytical and problems solving skills, and this is enhanced through the solution of practical problems and case studies. This unit will also provide students with an opportunity to work with an industry expert to understand and determine how these concepts are used in a real environment.

RELEVANT COURSES

Bachlelor of Accounting*

Bachelor of Agribusiness

*Core unit

Elective unit

CREDIT POINTS

10

DELIVERY MODE

On campus

Online

Extensive

PREREQUISITE OR CO-REQUISITE

AC101 Accounting I

UNIT LEARNING OUTCOMES

LO1 Evaluate management accounting and its role in decision making and control

LO2 Apply numerous cost concepts and pricing approaches to management control systems to make decisions and evaluate the impact of these decisions on profitability

LO3 Critically analyse budgets and perform variance analyses

LO4 Critique the information relevant to particular management accounting decisions and apply such information to solve problems when making these decisions

LO5 Generate spreadsheets to illustrate how a diverse range of pricing and costing issues impact on decision making and to demonstrate how spreadsheets can be used to support decision making in management accounting

CONTENT

  • Information that creates value: Introduction to management accounting
  • Cost concepts
  • Traditional costs allocation for products and services – firm wide; departmental, job costing
  • Contemporary cost allocation for products and services – ABC
  • Cost volume analysis
  • Relevant costing for non-routine decisions
  • Planning and budgeting
  • Flexible budgets and variance analysis (direct cost and overhead cost variances)
  • Inventory cost and capacity analysis
  • Performance measurement: Balanced scorecard & TQM
  • Performance measurement: ROI; residual income; economic value added
  • Organisation structure and accountability: Transfer pricing

ASSESSMENT METHODS

  1. Online Tests – 20%
  2. Group Assignment – 30%
  3. Exam – 50%

PRESCRIBED READINGS

Datar, S. & Rajan, M. (2021). Horngren’s cost accounting-A managerial emphasis, global edition (17th ed.). London: Pearson Education

Check with the lecturer each semester before purchasing any textbooks.