ACCOUNTING FOR DECISION MAKING

SHE Level 3
SCQF Credit Points 20.00
ECTS Credit Points 10.00
Module Code M3N420918
Module Leader Stuart McChlery
School Glasgow School for Business and Society
Subject Accounting
Trimesters
  • A (September start)
  • B (January start)

Pre-Requisite Knowledge

M2N420691 PLANNING, CONTROL AND PERFORMANCE EVALUATION

Summary of Content

The module will cover some more advanced aspects of management accounting and its role in management decision making. Major topics include: the development of Cost Volume Profit Behaviour and Analysis, Relevant Costing,Linear Programming Pricing, Investment Appraisal, Uncertainty and Contemporary Management Accounting Methodologies. The student will learn to present information in a usable, reasoned format emphasizing computer and communication skills.

Syllabus

CVP - Multiple products Development of technique to encompass multiple products using both graphical and formula approaches . Advanced consideration of cost and income behaviour and modelling. Relevant Costing Analysis of situations involving make/buy, special order, limiting factor, deleting a segment. Pricing Consideration of theoretical methods of pricing and calculation of optimal price - incorporating the use of calculus. Target pricing, market skimming and penetration pricing. Uncertainty Construction of tree, probability theory, EMV, minmax, maximin. Two way tables Investment Appraisal NPV, IRR, ARR and payback - comparison and evaluation Taxation, inflation, lease/buy, capital rationing Linear Programming Formulation and graphical solution. Interpretation of solution.

Learning Outcomes

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

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 so freeing seminar contact time for detailed discussion of solutions. The use of the computer assisted learning will support the teaching and learning strategy Case studies will be used to develop managerial accounting skills and reinforce management accounting concepts. Students are expected to work through specially designed, student-centred material, with tutor assistance when required. The basic coursework is a group coursework with a further individual assessment on the case as a class test toward the end of the course. Student feedback will take place within two weeks of the date of the coursework assignment and all students will be offered an individual meeting to discuss their solution. 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 accompanying the recommended text, 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 hour will follow the distribution of the coursework giving students the opportunity to question the data and an alternative scenario assumed and the solution discussed. 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 with textbook. E: Delivering high quality information about your learning Feedback will be provided within two 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 to modules. Discussion boards used throughout the semester. Appointment and consultation of module reps.

Indicative Reading

Core: Drury, C. Management and Cost Accounting, 6h edition, Business Press, 2004 Gross, D et al. Succeeding in Business with Microsoft Office Excel 2003, Thomson. Additional: Atrill, P and McLaney, E, Management Accounting for Decision Makers, 4th Edition, Prentice Hall Journal articles supplied.

Transferrable Skills

Professional/practical skills Personal development skills and enterprise or business skills On successful completion of this module students 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 " Practise in ways which show a clear awareness of own and others' roles and responsibilities

Module Structure

Activity Total Hours
Independent Learning (FT) 110.00
Seminars (FT) 12.00
Assessment (FT) 30.00
Lectures (FT) 24.00
Online Learning 24.00

Assessment Methods

Component Duration Weighting Threshold Description
Coursework 0.00 15.00 n/a Group Case Study
Coursework 2 1.00 15.00 n/a Case Study Individual class test
Exam (Exams Office) 3.00 70.00 35% Unseen Examination