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22746 Managerial Accounting

UTS: Business: Accounting
Credit points: 6 cp

Subject level: Postgraduate

Result Type: Grade and marks

Handbook description

Management accounting information systems are one of the main decision support systems in organisations. This subject equips students with the skills and knowledge to design and use effective management accounting information in planning and controlling organisational activities. Topics include traditional product costing, activity-based costing, cost behaviour and cost-volume profit analysis, budgetary planning and control, differential costing and capital budgeting, standard costing and variance analysis and performance measurement systems.

Subject objectives/outcomes

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

  1. understand the role of management accounting in organisations
  2. understand basic cost concepts and techniques
  3. understand how management accounting assists in planning and controlling business activities and how it provides decision support
  4. understand the fundamentals of product costing and to prepare costing schedules
  5. prepare budgeted profit and loss and cash flow statements
  6. analyse production operations by using standard product costing for the analysis of cost variances
  7. understand profit planning techniques using cost-volume-profit concepts and their application to support various decision contexts
  8. understand the design of performance measurement systems to conform to and advance organisation goals.

Contribution to graduate profile

Management accounting information systems are one of the main decision support systems in organisations. This subject equips students with the skills and knowledge to design and use effective management accounting information in planning and controlling organisational activities. Topics include traditional product costing, activity-based costing, cost behaviour and cost-volume profit analysis, budgetary planning and control, differential costing and capital budgeting, standard costing and variance analysis and performance measurement systems.

Teaching and learning strategies

The subject will be taught using a combination of lectures and workshops. Students are also required apply the knowledge they have acquired in the course to study a particular application of management accounting systems in their organisation contexts and present their findings both to the class and in a formal report.

Content

  • Role of management accounting in organisations
  • Cost concepts and product costing systems
  • Conventional overhead cost allocation+
  • Activity-based costing
  • Budgeting
  • Standard cost for control
  • Cost-volume-profit analysis
  • Accounting information for decision making
  • Capital expenditure decisions
  • Accounting information for managing performance.

Assessment

Assessment item 1: In-class test (Individual)

Objective(s): 2-8
Weighting: 20%
Task: There will be two in-class tests designed to assess students understanding of the cost and management accounting concepts and techniques to demonstrate that students have met objectives 2-8.

Assessment item 2: Assignment (Group)

Objective(s): 1, 4, 6, 7, 8
Weighting: 20%
Task: The major assignment will be attempted as a group assignment. The objective of the major assignment is for students to apply the knowledge they have acquired in the subject to analyse and evaluate a particular application of management accounting systems (MAS) in an organisation of your choice. It has been argued that the effectiveness of MAS depends on their ability to successfully implement a firm's strategy. Students have to evaluate the appropriateness of the MAS in the selected organisation in the context of the strategic positioning of the organisation in its competitive environment. The analysis should show a mature understanding of the competitive environment, strategy, structure and operations of the organisation and of the relevant management accounting issues involved to satisfy objectives 1, 4, 6, 7 and 8.

Assessment item 3: Final Examination (Individual)

Objective(s): 1-8
Weighting: 60%
Task: The final examination will comprise of two parts. Part A will test students understanding of theory and their ability to apply theory to the design of management accounting systems and that they have met objectives 1 and 11. Part B will test students' knowledge and skills in cost and management accounting concepts and techniques to demonstrate that students have met objectives 1-8.

Required text(s)

Langfield-Smith, K, Thorne, H, and Hilton, RW, 2006, Management Accounting — Information for Managing and Creating Value, 4th edn, McGraw-Hill

Indicative references

Hopwood, A.G., (1976), Accounting and Human Behaviour, Prentice-Hall. Pp. 57-68 (657.019HOPW)

Kaplan, R. S. and Atkinson, A. A., (1998), Advanced Management Accounting, Upper Saddle River, N. J., Prentice-Hall International

Kaplan, R. S., and Norton, D. P., (1992), The Balanced Scorecard — Measures that Drive Performance, Harvard Business Review, pp. 71-79

Kaplan, R.S. and Norton, D.P, (1996), Using the Balanced Scorecard as a Strategic Management System, Harvard Business Press, pp. 75-85

Macintosh, N.B., (1985), The Social Software of Accounting and Information Systems, Chapters 2 & 3 Wiley, (658.40388MACI)