Durham University
Programme and Module Handbook

Undergraduate Programme and Module Handbook 2018-2019 (archived)

Module ECON1111: Introduction to Management Accounting

Department: Business School (Economics and Finance)

ECON1111: Introduction to Management Accounting

Type Tied Level 1 Credits 20 Availability Available in 2018/19 Module Cap None. Location Durham
Tied to NN43
Tied to NN42
Tied to N302
Tied to N304
Tied to N204
Tied to N206
Tied to N305
Tied to N306
Tied to N307


  • None


  • None

Excluded Combination of Modules

  • None


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


  • 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

Subject-specific Knowledge:
  • 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.
Subject-specific Skills:
  • 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.
Key Skills:
  • 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

Activity Number Frequency Duration Total/Hours
Lectures 42 Twice per week 1 hour 42
Seminars 8 Once per fortnight 1 hour 8
Preparation, fieldwork and reading 170 150
Total 200

Summative Assessment

Component: Examination Component Weighting: 100%
Element Length / duration Element Weighting Resit Opportunity
Examination 2 hours 30 minutes 100% Same

Formative Assessment:

Computer-based multiple choice questions.

Attendance at all activities marked with this symbol will be monitored. Students who fail to attend these activities, or to complete the summative or formative assessment specified above, will be subject to the procedures defined in the University's General Regulation V, and may be required to leave the University