Module Delivered in
| Short Title: | Management Accounting 4 |
|---|
| Full Title: | Management Accounting 4 |
|---|
| Description: | The aim of this module is to further develop skills relevant to management accounting and build on those skills already developed in previous modules. It aims to assess those skills in a practical way as well as ensuring that students have knowledge of current developments and thinking relevant to this module. |
|---|
| Learning Outcomes: |
|---|
| On successful completion of this module the learner will be able to | - Distinguish between different budgeting techniques and show an understanding of the suitability of such techniques in different business environments.
- Demonstrate an understanding of the purpose of standard costing together with an ability to calculate variances including more complex mix and yield variances. They should also be able to establish the causes of variances and identify appropriate remedial action where adverse variances have arisen.
- Discuss the impact of management control systems within an organization and assess the controllability principle and how this will affect those systems.
- Identify costs relevant to the decision making process and apply those to a range of scenarios
- Analyse and appraise the effects of risk and uncertainty in the decision making process.
|
Module Content & Assessment| Content |
|---|
Information for Decision-Making:
Measuring Relevant Costs and Revenues for Decision Making: (35%) The meaning of relevance
Qualitative factors
Product mix decisions when capacity constraints exist (limiting factor analysis)
Replacement of equipment – the relevance of past costs
Outsourcing, make or buy, further processing decisions
Discontinuation decisions
Use of relevant costing in minimum pricing decisions Pricing Decisions Pricing strategies, price skimming, penetration pricing and price discrimination
The evaluation of pricing decisions such as price/demand relationships, relevant costs, product life cycles, target costing, transfer pricing and profit maximisation
Pricing methods: full cost-plus, demand, minimum, tender and variable cost-plus
Qualitative decisions in pricing Risk and Uncertainty Probabilities
Measuring uncertainty
Maximin, maximax and regret criteria
Structure and use of decision trees Information for Planning, Control and Performance Measurement: (15%)
The Budgeting Process Different types of budgets including master, product and cash
The strengths and weaknesses of budgeting control
The behavioural aspects of budgeting
The use of forecasting techniques in the budgetary planning process
The different methods of budgeting employed including fixed, flexible, zero-based, incremental, continuous including quantitative techniques such as regression scatter diagrams with correlation and forecasting
Use of learning curve theory in budgetary planning and control
Current trends in budgeting such as Activity Based Budgeting, Zero Based Budgeting and Rolling Budgets
Beyond budgeting techniques and criticisms of abandoning budgets Management Control Systems: (10%) The controllability principle
Identify controllable and uncontrollable elements
Harmful side effects of control
Ideas behind feedback and feedforward controls
Responsibility accounting and four types of responsibility centres: cost, revenue, profit and investment
The use of flexible budgeting, variance analysis, benchmarking and subjective evaluations to remove uncontrollable elements Standard Costing and Variance Analysis: (40%) The use of standard costing and variance analysis including sales and cost variances, mix and yield, planned and operational, fixed overhead capacity and volume
Preparation of statements to reconcile budget and actual profit
Controllability and uncertainty of variances
The relative strengths and weaknesses of standard costing
Preparation of standard costing and variance analysis under Absorption and Marginal costing systems
Interpretation of variances
Behavioural implications of setting standard costs
The relevance of standard costing in today’s business environment and its future role
|
| Assessment Breakdown | % |
|---|
| Course Work | 30% | | End of Semester Formal Examination | 70% |
| | Outcome addressed | % of total | Assessment Date |
|---|
| Formal End-of-Semester Examination | None | 70% | Semester End |
|---|
| Coursework Breakdown |
|---|
| Type | Description | Outcome addressed | % of total | Assessment Date |
|---|
| Continuous Assessment | Continuous assessment will be in the form of an in class time constrained closed book assessment | | 30 | n/a |
IT Tallaght reserves the right to alter the nature and timings of assessment Module Workload & Resources| This course has no full time workload. |
|---|
| Resources |
|---|
| Required Book Resources |
|---|
- Drury, Colin, Management and Cost Accounting, Latest Ed.
| | Recommended Book Resources |
|---|
- Lucey, T, Management Accounting, Latest Ed., DP Publications
- Horngren C.T, Cost Accounting :A Managerial Emphasis,, Latest Ed., Prentice Hall
- Harper, W.M, Management Accounting, Latest Ed., Pitman
| | Required Article/Paper Resources |
|---|
- Relevant articles from Accounting and Financial journals n/a
- Accountancy (UK) Journal ICAEW n/a
- Accountancy Ireland Journal ICAI n/a
- Accountancy Age Journal 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
| | Other Resources |
|---|
- ICAI http://www.icai.ie: n/a
- ICAI: IFRS http://www.icai.ie/Members/ifrs.cfm: n/a
- ICAEW http://www.icaew.co.uk/: n/a
- ACCA http://www.accaglobal.com/: n/a
- CIMA http://www.cimaglobal.com/: n/a
- ICPAI http://www.cpaireland.ie/: n/a
- ASB http://www.frc.org.uk/asb/: n/a
- IASB http://www.iasb.org/: n/a
- IASPLUS http://www.iasplus.com/index.htm: n/a
|
|
