Short Title:Management Accounting 1
Full Title:Management Accounting 1
Module Code:MACC H2003
NFQ Level:6
ECTS Credits:5
Description:This module aims to provide students with a comprehensive understanding of the role of the Cost and Management Accountant. The students should be able to apply cost accounting techniques to cost products and services. This knowledge provides the student with techniques relevant to problems solving in a work situation.
Learning Outcomes:
On successful completion of this module the learner will be able to
  1. Describe and explain the role of the Cost and Management Accountant in industry, commerce and the service sector.
  2. Describe the basic theory underlying the techniques used in the cost ascertainment of products and services.
  3. Demonstrate the use of costing techniques to cost materials and labour into products and services such as FIFO, LIFO, Weighted Average and Labour incentive schemes.
  4. Demonstrate the use of allocating overheads into products and services, and apply that information to cost jobs and services for customers.
  5. Employ interlocked and integrated accounting techniques to cost jobs and services for customers.
  6. Apply process costing and joint and by-product costing methods to cost jobs and services for customers.

Module Content & Assessment

Content (The percentage workload breakdown is inidcative and subject to change)
  • The scope of Management Accounting (10%)
    Background to management accounting and its users; comparison between financial and management accounting; changing competitive environment; role of management accountant and the functions of management accounting
  • Cost and revenue classification (10%)
    Cost objects; classification of costs, cost accounting, elements of manufacturing costs; classification for decision making and planning; classification for control.
  • Accounting for materials and labour (20%)
    Materials controls procedure, pricing and valuation of raw materials (FIFO, LIFO and weighted averate); treatment of stores losses, use of quantitative modules for planning and control of stocks (EQO, MRP, JIT); accounting for labour; incentive schemes.
  • Overhead expenditure (25%)
    Direct and indirect costs; principles and processes of overhead cost analysis; allocation of overhead costs; procedures for calculating cost centre overhead absorption rates; blanket overhead rates, overhead allocation procedure, predetermined overhead rates, under/over recovery of overheads.
  • Accounting entries in a job costing system (15%)
    Control accounts; recording the purchase/issue of raw materials; accounting procedure for labour costs; manufacturing overheads; non-manufacturing overheads; accounting procedure for jobs completed and products sold; costing profit and loss account; interlocking accounting; integrated accounting; contract costing.
  • Process costing (20%)
    Flow of costs in a process costing system; normal and abnormal losses; accounting for sale of scrap; abnormal gains; work in progress; previous process cost; weighted average and first in first out methods; equivalent production with normal and abnormal losses; joint and by-product costing methods; accounting for by-products, scrap and waste.
Assessment Breakdown%
Course Work30%
End of Semester Formal Examination70%
 Outcome addressed% of totalAssessment Date
Formal End-of-Semester Examination1,2,3,4,5,670%Semester End
Coursework Breakdown
TypeDescriptionOutcome addressed% of totalAssessment Date
Continuous AssessmentThe continuous assessment will take the form of an individual assessment. This will be an in-class time constrained exam. The continuous assessment is designed primarily to assess learning outcomes 1 to 6.30n/a

IT Tallaght reserves the right to alter the nature and timings of assessment


Module Workload & Resources

This course has no full time workload.
Required Book Resources
  • Drury C 2006, Cost Accounting and Management Accounting, An Introduction,, 6th Ed., Thomson
Recommended Book Resources
  • Lucey T 2002, Costing, 6th Ed., DP Publications
  • Horngren 2005, Cost Accounting: A Managerial Emphasis, 12th Ed., Prentice-Hall
  • Owler & Brown, 2000, Wheldon’s Cost Accounting, 11th Ed., Pitman
  • Brown G 1991, Cost and Management Accounting 1, 1st Ed., Longman
Recommended Article/Paper Resources
  • Accountancy UK Journal ICAEW n/a
  • Accountancy Ireland Journal ICAI n/a
  • Accountancy Age n/a
  • Accountancy Plus Journal ICPAI n/a
  • Business and Finance Journal n/a
  • Business and Finance Journal n/a, Financial Times Newspaper
  • Sunday Business Post Newspaper n/a