## MANAGEMENT ACCOUNTING 3

 SHE Level 3 SCQF Credit Points 20.00 ECTS Credit Points 10.00 Module Code M3N325753 Module Leader Stuart McChlery School Glasgow School for Business and Society Subject Finance and Accounting Trimester B (January start)

### Pre-Requisite Knowledge

Management Accounting 2 or equivalent

### Summary of Content

The module will cover management accounting and its role in management decision making. Major topics include: Advanced Cost Volume Profit Analysis, Relevant Costing in specific contexts, Linear Programming, Pricing, Investment Appraisal, and Uncertainty, The student will learn to present information in a usable, reasoned format emphasizing computer and communication skills.

### Syllabus

Advanced cost and income behaviour and modelling: Graphical simulation of complex cost behaviour including economist v accounting models Least squares application for fixed and variable costs differentiation Learning curves for labour cost estimation Cost-profit-volume for multiple product scenarios Cost-profit-volume analysis for multiple breakeven points Relevant Costing analysis in defined complex scenarios including financial and on-financial consideration: Replacement equipment Segment/function deletion (including functional analysis) Special order Outsourcing (including value chain analysis) Stockholding (including JIT, EOQ) Pricing Decisions: Consideration of theoretical methods of pricing e.g. economists model Calculation of optimal price - incorporating the use of calculus. Target pricing, market skimming and penetration pricing. Life cycle costing and pricing Uncertainty and risk in decision making Probability theory and risk parameters (standard deviation, coefficient of variation) Uncertainty modelling for decision making: EMV, minimax, maximin, minimax regret Construction of decision trees Two way tables Introduction to risk management Investment Appraisal NPV, IRR, ARR and payback - comparison and evaluation Advanced aspects: Taxation, inflation, lease/buy, capital rationing Decision making where limitations exist One limiting factor including throughput accounting More than one limiting factor but two products - graphical approach More than one limiting factor and more than two products: Linear Programming

### Learning Outcomes

On successful completion of this module, the student should be able to:1. Demonstrate a broad and integrated knowledge and understanding of the scope, main areas and boundaries of management accounting for decision making.2. Critically understand a selection of principal theories, principles and terminology of management accounting to aid in decision making.3. Demonstrate a detailed knowledge of some areas and knowledge of one of more current developments in management accounting for decision making.4. Undertake critical analysis, evaluation and synthesis of ideas, concepts, information and issues.5. Identify and analyse contextualised professional problems and issues6. Draw on a range of sources in making judgements.

### Teaching / Learning Strategy

Books and articles: Core: Drury, C. (2018) Management and Cost Accounting, 10th edition, Cengage Learning Supplementary: Seal W, Garrison RH, Noreen EW. (2019) Management Accounting, 6th edition, McGraw Hill. Bhimani A., Horngren, C.T, Srikant M. Datar, S.M and Madhav Rajan, M., (2015) Management and Cost Accounting, 6th Edition, Pearson Journal articles supplied whenever deemed necessary Online sources: As provided by publisher in core textbook

### Transferrable Skills

By the end of this module students will have gained competence in the key areas of professional/practical skills, personal development skills and enterprise or business skills and will be able to: Use a selection of the principal skills, techniques and practices associated with management accounting Use a few skills, techniques and practices that are specialised or advanced Practice routine methods of enquiry and research Practice in a range of professional level contexts which include a degree of unpredictability Exercise autonomy and initiative in professionally equivalent activities Practice in ways which show a clear awareness of own and others' roles and responsibilities

### Module Structure

Activity Total Hours
Lectures (FT) 24.00
Independent Learning (FT) 135.00
Tutorials (FT) 11.00
Assessment (FT) 30.00

### Assessment Methods

Component Duration Weighting Threshold Description
Coursework 1 n/a 30.00 35% Project simulation, inidividual assessment including video presentation
Exam (Exams Office) 3.00 70.00 35% Unseen 3 Hour exam