Managerial Accounting
MODULE OUTLINE
The course is concerned with ensuring that students who do not have a first degree in accounting or an accounting related subject that gives them a sufficient grounding in management accounting and control principles, understand the accounting information and tools that they need to plan and control the strategic direction of their organisations. The course will critically examine a range of technical and contextual issues that relate to business decision making, including cost terms, concepts and classifications, short term decisions using relevant and variable costing, product costing and pricing, budgeting, and capital investment decisions. The course will introduce the topics gradually, explaining technical terminology, and will include a number of discussion questions and national and international level case studies (e.g. emerging economies) to help students to understand the issues and challenges they might face as business decision makers in modern organisations.
MODULE AIMS
The aims of the module are:
1) to provide students with wider understanding of managerial accounting and business decisions in certain, risk and uncertain environments;
2) to enable students to understand the managerial accounting techniques used by modern businesses;
3) through class discussion, reading, participation, case analysis and assessment develop students to tackle theoretical and empirical issues regarding managerial decision making.
LEARNING OUTCOMES
After completing the course students should:
1) have a systematic understanding and critical awareness of the objectives, form and roles of managerial accounting information and techniques in business decisions;
2) demonstrate clear conceptual understanding of the basic cost elements and cost classifications, and critically explain the effect of different costing methods on business decisions;
3) have a critical awareness of the purpose, process and behavioural aspects of budgeting in organisations;
4) be able to discuss, debate and critically evaluate the acceptability of investment projects and analyse the impact of uncertainty and risk on investment appraisal;
5) be able to comprehensively understand the current issues and challenges in managerial accounting and business decisions in the global environment,
6) be able to critically review and evaluate both professional and academic literature dealing with theoretical debates, empirical issues and criticisms of managerial accounting and business decisions in modern organisations.
MODULE SYLLABUS
Week 1, S1 Introduction to managerial accounting and business decisions
Week 1, S2 Cost terms, concepts and classifications
Week 2, S1 Short term decisions using relevant costing
Week 2, S2 Short term decisions using variable costing and breakeven analysis
Week 3, S1 Product costing and pricing
Week 3, S2 Profit planning and the role of budgeting
Week 4, S1 Budgeting for control: the behavioural issues
Week 4, S2 Making capital investment decisions
Week 5, S1 Decision making under risk and uncertainty
Week 5, S2 Global issues in managerial accounting and business decisions
S1 = Session 1
S2 = Session 2
TEACHING DELIVERY
The module will run for 5 weeks. There will be 2 three hour sessions each week (total of six contact hours per week). Each individual session will consist of an approximately one and half hour lecture on theory and a one and half hour class, and students will be expected to participate in seminar and other activities as indicated in the module outline (e.g. case study discussion on practice). Students will be expected to have done the required readings before the class.
MODULE OUTLINE
The course is concerned with ensuring that students who do not have a first degree in accounting or an accounting related subject that gives them a sufficient grounding in management accounting and control principles, understand the accounting information and tools that they need to plan and control the strategic direction of their organisations. The course will critically examine a range of technical and contextual issues that relate to business decision making, including cost terms, concepts and classifications, short term decisions using relevant and variable costing, product costing and pricing, budgeting, and capital investment decisions. The course will introduce the topics gradually, explaining technical terminology, and will include a number of discussion questions and national and international level case studies (e.g. emerging economies) to help students to understand the issues and challenges they might face as business decision makers in modern organisations.
MODULE AIMS
The aims of the module are:
1) to provide students with wider understanding of managerial accounting and business decisions in certain, risk and uncertain environments;
2) to enable students to understand the managerial accounting techniques used by modern businesses;
3) through class discussion, reading, participation, case analysis and assessment develop students to tackle theoretical and empirical issues regarding managerial decision making.
LEARNING OUTCOMES
After completing the course students should:
1) have a systematic understanding and critical awareness of the objectives, form and roles of managerial accounting information and techniques in business decisions;
2) demonstrate clear conceptual understanding of the basic cost elements and cost classifications, and critically explain the effect of different costing methods on business decisions;
3) have a critical awareness of the purpose, process and behavioural aspects of budgeting in organisations;
4) be able to discuss, debate and critically evaluate the acceptability of investment projects and analyse the impact of uncertainty and risk on investment appraisal;
5) be able to comprehensively understand the current issues and challenges in managerial accounting and business decisions in the global environment,
6) be able to critically review and evaluate both professional and academic literature dealing with theoretical debates, empirical issues and criticisms of managerial accounting and business decisions in modern organisations.
MODULE SYLLABUS
Week 1, S1 Introduction to managerial accounting and business decisions
Week 1, S2 Cost terms, concepts and classifications
Week 2, S1 Short term decisions using relevant costing
Week 2, S2 Short term decisions using variable costing and breakeven analysis
Week 3, S1 Product costing and pricing
Week 3, S2 Profit planning and the role of budgeting
Week 4, S1 Budgeting for control: the behavioural issues
Week 4, S2 Making capital investment decisions
Week 5, S1 Decision making under risk and uncertainty
Week 5, S2 Global issues in managerial accounting and business decisions
S1 = Session 1
S2 = Session 2
TEACHING DELIVERY
The module will run for 5 weeks. There will be 2 three hour sessions each week (total of six contact hours per week). Each individual session will consist of an approximately one and half hour lecture on theory and a one and half hour class, and students will be expected to participate in seminar and other activities as indicated in the module outline (e.g. case study discussion on practice). Students will be expected to have done the required readings before the class.