Faculty of Business: Accounting
Credit points: 6 cp

Subject level: Undergraduate

Result Type: Grade and marks

Requisite(s): 22207 Accounting Transactions and Business Decisions
These requisites may not apply to students in certain courses.
There are also course requisites for this subject. See access conditions.

Handbook description

This subject introduces the basic concepts underlying management accounting with a particular emphasis on current developments. It introduces appropriate cost management concepts, techniques and skills such as cost planning, cost behaviour, cost estimation, and cost accumulation and allocation systems (job, process and activity-based costing). It emphasises using accounting information to understand and make decisions about the management of the cost structure of an organisation.

Subject objectives/outcomes

On successful completion of this subject students should be able to:

1. Critically understand the role of management accounting in modern organisations.
2. Appreciate both historical and contemporary views of how management accounting creates value for organisations.
3. Understand cost accounting techniques in relation to cost management with major emphasis on the role of allocations in costing.
4. Critically apply knowledge of product costing and budgeting systems and associated technique.

Contribution to graduate profile

This subject introduces students to the basic concepts underlying Management Accounting, which is one of the core streams in the study of accounting. It provides an in-depth understanding of appropriate cost management concepts with an emphasis on the use of accounting information to understand and make decisions about the management of the cost structure of organisations. Students will acquire a set of concepts, skills and techniques that are necessary for potential managers with particular appreciation of the various issues and challenges faced by managers within organisations.

Teaching and learning strategies

The subject is taught in a large 1 hour lecture and smaller 2 hour tutorials every week. The lectures introduce the structure of the particular topic area and some practical examples. The tutorials discuss lecture topics from the previous week in detail to ensure a thorough understanding the subject content. Students are therefore given a week to reflect over the information from the lectures to be discussed in tutorials. Moreover, students are required to attempt selected questions under the supervision of a tutor. This method of teaching enables students to clarify any doubts with regards to topic covered in a timely fashion.

Content

• Introduction to Management Accounting
• Cost Behaviour, Cost Drivers and Cost Estimation
• Cost – Volume – Profit Analysis
• Product Costing Systems
• Process and Operation Costing and Service Costing
• Overhead Costing using Activity Based Costing and Standard Costing Systems
• Pricing Decisions and Relevant Costing.

Assessment

Class Tests (Individual)	20%
This addresses objectives 1-4.
Mid–Semester Examination (Individual)	30%
This addresses objectives 1, 3 and 4.
Formal Final Examination (Individual)	50%
This addresses objectives 1-4.

Examinations and class tests will be conducted under University examination conditions, and hence thoroughly address concern regarding secure assessment.

Recommended text(s)

Langfield-Smith, K., Thorne, H., Hilton, R.W., Management Accounting – An Australian Perspective, (3rd Edition) McGraw-Hill Australia.

Indicative references

Atkinson, A., Banker, R., Kaplan, R. and Young, S. (1997). Management Accounting (2nd Ed.). Englewood Cliffs, N.J.: Prentice-Hall International.

Horngren, C. T., Foster, G. and Datar, S. M., Cost Accounting, A Managerial Emphasis, (International 10th Ed. 2000) Englewood Cliffs, N.J.: Prentice-Hall International.