COST & MANAGEMENT ACCOUNTING

SHE Level 1
SCQF Credit Points 20.00
ECTS Credit Points 10.00
Module Code M1N422792
Module Leader Stuart McChlery
School Glasgow School for Business and Society
Subject Finance and Accounting
Trimester
  • A (September start)-B (January start)

Pre-Requisite Knowledge

None

Summary of Content

The module will cover the use of management accounting techniques, their role in management decision making and the use of computer software as an aid to this process. Major topics include: cost classification and behaviour, budgeting, costing methods, overhead absorption and activity based costing, absorption and marginal costing and cost volume profit analysis. The student will learn to present information in a usable, reasoned format emphasizing communication and computer skills.

Syllabus

Introduction to management accounting Definition of management accounting, comparison of financial and management accounting, overview of the decision making process, functions of management accounting and the evolution of management accounting. Cost classification for alternative uses Identification of costs: cost objects, direct and indirect costs, manufacturing costs, period and product costs. Cost behaviour: variable costs, fixed costs, semi variable and step fixed costs, Costs classification for decision making: relevant and irrelevant costs, avoidable and unavoidable costs, sunk and opportunity costs, incremental revenue and costs Budgeting Introduction to the budgetary process and alternative approaches to developing budgets Functional up to master budget; fixed and flexible budgets Costing methods Alternative costing methods : job and batch costing Integrated cost accounting system Stock and labour costing: FIFO, LIFO, weighted average cost methods; incentive schemes Overhead absorption and activity based costing Re-allocation of service based department overheads: direct, step, repeated distribution and simultaneous equations methods Overhead rates and product cost, blanket versus departmental rate, actual versus pre-determined rate. Under/over absorption of overheads Comparison of traditional allocation of overheads and activity based costing and impact on product costing Absorption and marginal costing Construction of profit statements and reconciliation of profits. Advantages and disadvantages of absorption and marginal costing. CVP Analysis Single product -graphical and formula analysis Single limited resource analysis High low analysis

Learning Outcomes

"On successful completion of this module students should be able to:"1. Demonstrate a broad knowledge of Management Accounting in general and of its scope, defining features, and main areas2. Show an understanding of the main theories, concepts and principles of Management Accounting3. Show an awareness of the evolving nature of knowledge and understanding4. Present and evaluate arguments, information and ideas which are routine to management accounting5. Use a range of approaches to address defined problems and issues within familiar contexts

Teaching / Learning Strategy

Lectures, seminars and computer laboratories will be used flexibly in accordance with the needs of the module. Worked examples will be covered in lectures at the start of each topic so freeing seminar contact time for detailed discussion of solutions. Case studies will be used in lab and seminar work to develop managerial accounting skills and reinforce management accounting concepts. The use of computer assisted learning will support the teaching and learning strategy. Students are expected to work through specially designed, student-centred material, with tutor assistance when required. Students will be provided with feedback on all forms of assessed work within three weeks of submission. GSBS will continue to use the advancement of GCU Learn as a blended learning tool through its teaching and learning as well as through engagement with students. GSBS will ensure that all modules are GCU Learn enabled and with the support of the Learning Technologists at the cutting edge of development of online materials. Academic staff and the Learning Technologists will continue to work together to develop and operate all modules on GCU Learn to ensure student support and information sharing. Students are provided with formative and summative feedback via a variety of mechanisms. Feedback on coursework is provided within 3 working weeks of submission.

Indicative Reading

-567 Books and articles: Core: Drury, C. (2012) Management and Cost Accounting, 8th edition, Cengage Learning Supplementary: Seal W, Garrison RH, Noreen EW. (2009) Management Accounting, 3 rd edition, McGraw Hill Journal articles supplied whenever deemed necessary -567 Online sources: As provided by publisher in core textbook

Transferrable Skills

By the end of this module students will have gained competence in the following key areas: Professional/practical skills Personal development skills and enterprise or business skills On successful completion of this module students should be able to: . Apply basic and routine skills and techniques associated with management accounting . Use a range of forms of communication effectively and convey ideas in a well-structured and coherent form . Exercise initiative and independence in carrying out defined activities

Module Structure

Activity Total Hours
Independent Learning (FT) 116.00
Lectures (FT) 44.00
Practicals (FT) 10.00
Seminars (FT) 10.00
Assessment (FT) 20.00

Assessment Methods

Component Duration Weighting Threshold Description
Course Work 01 1.00 20.00 35% Unseen case study
Course Work 02 1.00 10.00 35% IT Lab Portfolios
Exam (Exams Office) 2.00 70.00 35% Exam