Module ECOS1151: Introduction to Management Accounting

Department: Business School (Economics and Finance) [Queen's Campus, Stockton]

ECOS1151: Introduction to Management Accounting

Tied To

• N204: Accounting and Management with Business Placement
• N206: Accounting and Management with Study Abroad
• N300: Business Finance with Placement Year (see Undergraduate Handbook 2012-2013 for details)
• N301: Business Finance with Business Placement
• N302: Accounting and Finance with Business Placement
• N303: Business Finance with Study Abroad (see Undergraduate Handbook 2014-2015 for details)
• N304: Accounting and Finance with Study Abroad
• N305: Finance
• N306: Finance with Business Placement
• N307: Finance with Study Abroad
• N401: Management Accounting
• N402: Financial Accounting
• N403: Financial Accounting with Business Placement
• N404: Management Accounting with Business Placement
• N405: Financial Accounting with Study Abroad
• N406: Management Accounting with Study Abroad
• N420: Business Finance
• NN24: Accounting and Management with Placement Year (see Undergraduate Handbook 2012-2013 for details)
• NN34: Accounting and Finance with Placement Year (see Undergraduate Handbook 2012-2013 for details)
• NN42: Accounting and Management
• NN43: Accounting and Finance

Pre-requisites

Corequisites

Excluded Combinations

Aims

• The aim of the module is to introduce the basic concepts of Management Accounting and to enable students to understand Management Accounting reports.

Content

• An introduction to Management Accounting. The role of the management accountant; corporate goals; objectives of management accounting in the organisational context. Value of information.
• Classification of costs; Stock Valuation and Profit Measurement: Cost concepts; Traditional costing approaches; Quantitative costing techniques: cost estimation and prediction
• Material and Labour Costs
• Overhead Costs
• Absorption Costing and Marginal Costing
• Job Costing
• Process costing
• Short-term decision making: Information for Decision-Making: Activity-Based Costing (ABC); Cost behaviour; cost-volume-profit (CVP) analysis.
• Relevant costs; limiting factor analysis; Pricing decisions.
• Appraising Risk: decision-making under conditions of uncertainty.
• Working Capital Management
• Information for Planning and Control: Budgetary control and planning: profit planning; flexible budgets; standard costing and variance analysis; Activity-Based Budgeting (ABB).
• Business strategy and management accounting

Learning Outcomes

• On completion of this module, students will be able to:
• understand the relevance of accounting information in business decisions.
• understand basic management accounting concepts.
• understand the different cost classifications.
• understand the different costing systems.
• demonstrate the usage of management accounting information in short-term and long-term decisions.

• On completion of this module, students will be able to:
• calculate full and marginal costs and uses of both by managers.
• understand ways in which management accounting information may be used in decision making.
• calculate relevant costs for decision making.
• calculate product price under different pricing approaches.
• demonstrate the different investment appraisals techniques.
• emphasis the main aspects of planning & control.

• Written communication
• Planning, Organisation and Time Management
• Problem Solving and Analysis
• Initiative by gaining access to relevant sources
• Computer literacy
• Self-management and demonstration of ability to sustain effort over an extended period.

Modes of Teaching, Learning and Assessment and how these contribute to the learning outcomes of the module

• Learning will be facilitated by lectures, seminars and support for private study.
• The summative assessment, by examination, will test students’ understanding of the subject matter and their ability to perform relevant calculations and techniques.

Teaching Methods and Learning Hours

Summative Assessment

Formative Assessment

Computer-based multiple choice questions.