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
  • 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.


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

Teaching / Learning Strategy Lectures, seminars and computer based learning will be used flexibly in accordance with the needs of the module. Worked examples will be distributed to students at the start of each topic to allow for student preparation so freeing seminar contact time for detailed discussion of solutions. The use of the 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. Case studies will be used to develop managerial accounting skills and reinforce management accounting concepts. The coursework is a group study on a complex business case involving advanced investment appraisal techniques linked with uncertainty and non-financial considerations. Students are provided with formative and summative feedback via a variety of mechanisms. Student feedback will take place within three weeks of the date of the coursework assignment and all students will be offered an individual meeting to discuss their solution. 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 GCULearn to ensure student support and information sharing. Feedback Strategy A: Facilitating the development of self-assessment: Comparison of student's prepared solutions to tutorial question with tutors suggested solutions. Discussion of coursework with individual student and comparison to skeleton solution. By making use of the on-line resources of self-assessment tests, students will have the opportunity to test themselves frequently throughout the semester and reflect on their performance B: Encouraging dialogue: Participation at seminars and lectures. Discussion with students at seminars of problems faced. C: Clarifying good performance: The discussion of suggested solutions to seminar questions. Past exam papers and solutions are included in the module handbook and a selection covered during seminar and lecture times. A case study discussion board will follow the distribution of the coursework giving students the opportunity to question the data and raise issues on an open forum regarding their approach and assumptions. D: Providing opportunities to close the gap between current and desired performance Incorporated within their PDP/Advising meetings. Individual review of coursework performance. On line assessments available on GCUlearn. E: Delivering high quality information about your learning: Feedback will be provided within three weeks of submission and will provide information on strengths, weaknesses and corrective advice. F: Encouraging positive motivational beliefs and self-esteem: Praise of seminar efforts and contributions in lectures. Reviews of assessments either through individual coursework or through the advising system. G: Providing information to teachers that can be used to help shape the teaching: On line questionnaires used. SSCG meetings throughout the semester give prompt feedback on modules. Discussion boards used throughout the semester for the coursework.

Indicative Reading

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