Short Title:Management Accounting 2
Full Title:Management Accounting 2
Module Code:MACC H2005
NFQ Level:6
ECTS Credits:5
Description:This module aims to provide students with a comprehensive understanding of costing systems and techniques employed by the Cost and Management Accountant. 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 basic theory underlying the techniques used by a Cost and Management Accountant to cost products and services using different costing systems.
  2. Demonstrate the use of cost volume profit analysis and investment appraisal techniques used in decision making.
  3. Describe and explain the theory behind budgeting and budgetary control in the management of businesses finance.
  4. Demonstrate the use of budgeting techniques and standard costing techniques in the management and control of businesses finance.
  5. Demonstrate the cost ascertainment of products and services using different costing systems such as absorption and marginal costing.

Module Content & Assessment

Content (The percentage workload breakdown is inidcative and subject to change)
  • Absorption costing and variable costing (20%)
    External and internal reporting, variable costing and absorption costing – a comparison of their impact on profit, contrast of absorption and marginal costing, arguments for and against the use of absorption and variable costing, activity based costing
  • Cost volume profit analysis (20%)
    Economists CVP model, accountant’s CVP model, approach to CVP, target profit, profit/volume ratio, margin of safety, breakeven charts, assumptions of CVP, use of marginal costing in decision making.
  • Capital investment appraisal decisions (20%)
    Evaluation of long-term investment opportunities through the use of: Net present value, internal rate of return, accounting rate of return
  • The budgeting process (20%)
    Advantages and uses of budgets; administration of the annual budget; stages in the budgeting process; preparation of budgets – fixed and flexible.
  • Standard costing and variance analysis (20%)
    Operation of a standard costing system; establishing cost standards; type of cost standards; purposes of standard costing; variance analysis for sales and cost variances; operating statements.
Assessment Breakdown%
Course Work30%
End of Semester Formal Examination70%
 Outcome addressed% of totalAssessment Date
Formal End-of-Semester Examination1,2,3,4,570%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.1,2,3,4,530n/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,, Cost Accounting and Management Accounting, An Introduction, 6th Ed., Thomson
Recommended Book Resources
  • Lucey T, Costing, 9th Ed., DP Publications
  • Horngren, Cost Accounting: A Managerial Emphasis, 12th Ed., Prentice-Hall
  • Owler & Brown, Wheldon’s Cost Accounting, 11th Ed., Pitman
  • Brown G, Cost and Management Accounting 1, 5th 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
  • Financial Times Newspaper n/a
  • Sunday Business Post Newspaper n/a