Management Accounting

Module Title	Management Accounting
Module Code	25-4012-00L
Semester of Delivery	See Module Information Table
Mandatory/Elective/Option	See Module Information Table
Level	4
Credit Points	20
Assessment Mode Weighting	Coursework	30%
	Examination	70%
Pre-requisites	None
Co-requisites	None
Class Contact Hours
Average Weekly	1.5
Directed Learning
Average Weekly	5
Module Leader	John Joyce MBA FCMA
	Sheffield Business School
Module Banding	A
Approval Status	Validated

Rationale

Management accounting is primarily concerned with the collection, analysis and communication of relevant information to enable decision makers to appraise efficiency and effectiveness within organisations. Information will be needed for planning and control purposes.

Management Accounting will provide students who have limited or no knowledge of management accounting with an introduction to the subject. Although the module will focus on fundamental core techniques and methods, students must also develop an understanding and critique of their applicability.

Summary of Aims

1. To provide opportunities for students to develop their knowledge and understanding of management accounting
2. The module aims to test the student's ability to identify, apply and explain fundamental management accounting methods and techniques.
3. To provide an underpinning for material which will be developed in further modules.

Anticipated Learning Outcomes

On completion of the module the student should be able to:

1. Define and explain fundamental management accounting terminology, concepts and theories .
2. Apply and explain fundamental management accounting methods and techniques.
3. Analyse, interpret and solve problems using management accounting methods and techniques.
4. Communicate understanding and interpretation of management accounting methods and techniques.

Assessment and Feedback Strategy

The learning outcomes will be assessed through 30% coursework and 70% examination.

The coursework will typically consist of 2 1 hour objective test question 'exams' and an assignment.

A typical examination paper will be structured as follows:

25%: objective test questions

25%: compulsory question

25%: choice of 1 question from 2 primarily numerical

25%: choice of 1 question from 2, primarily discursive

Module Assessment Criteria

Learning Outcome	Assessment Criterion (where assessed)	Level descriptors
		Fail	Pass	2.2	2.1	First
Outcome 1	Exam and / or coursework	Little or no knowledge of basic terminology, concepts and theory	Some knowledge of basic terminology, concepts and theory	Good knowledge of terminology, concepts and theory	Good knowledge of terminology and a wide range of concepts and theory	Extensive knowledge of terminology, concepts and theory, plus ability to explain it imaginatively
Outcome 2	Exam and / or coursework	Little or no application of techniques, principles and procedures.	Some application of techniques, principles and procedures.	Clear application of techniques, principles and procedures.	Good application of techniques, principles and procedures.	Excellent application of techniques, principles and procedures.
Outcome 3	Exam and / or coursework	Little or no analysis and interpretation	Some analysis and interpretation	Good analysis and interpretation	Good analysis and interpretation showing insight into issues and problems	Excellent analysis and interpretation showing firm understanding of issues and ability to solve problems
Outcome 4	Exam and / or coursework	Inability to communicate	Able to communicate knowledge and understanding of fundamental management accounting	Able to communicate knowledge and understanding of management accounting in an appropriate format.	Able to communicate and explain management accounting issues at an appropriate level.	Able to communicate at a level suitable for a professional.

Teaching and Learning Strategy and Methods

The methods and techniques will be introduced through lectures and then developed in workshops. Student participation will be encouraged in the workshops: students will be required to lead the discussions on the directed study material and present their solutions to exercises. Students will also be provided with the opportunity to develop their knowledge and understanding through their use of computer based learning packages and integration with other modules.

Indicative Content

The content of the module is designed to develop the ability to:

• Explain the importance of management accounting
• Identify cost behaviour and classify costs
• Calculate simple cost estimates using high-low method and line of best fit
• Prepare cost statements for allocation and apportionment of overheads (including reciprocal service departments)
• Explain absorption costing
• Calculate and discuss overhead absorption rates
• Calculate under/over recovery of overheads
• Calculate product costs under absorption
• Explain the contribution concept
• Calculate product costs under marginal costing
• Compare and contrast absorption and marginal costing
• Prepare profit and loss accounts from the same data under absorption and marginal costing and reconcile and explain the differences in reported profits
• Identify relevant costs and revenues
• Explain the contribution concept
• Calculate, interpret and discuss the break even point, profit target, margin of safety and profit / volume ratio for a single product
• Prepare break even charts and profit / volume graphs for a single product
• Calculate the profit-maximising sales mix for a company with a single resource constraint
• Explain why organisations prepare budgets
• Explain how organisations prepare budgets
• Explain the use of IT in the budget process
• Prepare functional budgets,
• Prepare profit and loss account, balance sheet and a simple cash budget
• Calculate simple cost estimates using high-low method and line of best fit
• Prepare simple reports showing actual and budgeted results
• Explain the differences between fixed and flexible budgets
• Prepare a fixed and flexible budget
• Calculate expenditure, volume and total budget variances
• Explain the principles of standard costing
• Prepare the standard cost for a product / service
• Calculate and interpret variances for sales, materials; labour; variable overheads and fixed overheads (expenditure and volume)
• Prepare a report reconciling budget gross profit / contribution with actual profit
• Compare and contrast job, batch, contract and process costing systems
• Explain the relevance of management accounting techniques