ACCT07031 2013 Management Accounting

General Details

Full Title
Management Accounting
Transcript Title
Management Accounting
N/A %
Subject Area
ACCT - Accounting
MENG - Mech. and Electronic Eng.
07 - NFQ Level 7
05 - 05 Credits
Start Term
2013 - Full Academic Year 2013-14
End Term
2019 - Full Academic Year 2019-20
Paul Curran
Programme Membership
SG_EMANM_J07 201300 Bachelor of Science in Manufacturing Management

The aim of this subject is for the student to have developed a good understanding of the nature of accounting and financial information and an ability to interpret such information and apply it to particular problems and situations within an organisation.

Learning Outcomes

On completion of this module the learner will/should be able to;


Describe the nature and purpose of management accounting.


 Apply the main principles of management accounting for budgeting, planning, controlling and short term decision making.


Identify and apply the main techniques used in the appraisal of capital expenditure decisions and interpret the results.


Discuss the importance of good working capital management.


Be able to distinguish between an apply job costing and process costing approaches in relevant situations

Indicative Syllabus

Introduction to Cost Behaviour and Cost-Volume Relationships

 -cost drivers affect cost behaviour, cost-driver levels affect variable and fixed costs, break-even sales volume, cost-volume-profit graph, contribution margin versus gross margin, effects of sales mix on profits

Cost Management Systems and Activity-Based Costing

Describe step- and mixed-cost behaviour, management influences on cost behaviour, activity analysis direct and indirect costs, allocating costs, differences between traditional and activity-based costing (ABC) systems


Relevant Information for Decision Making with a Focus on Pricing  and Operational Decisions

- absorption and contribution-margin income statements, contribution-margin technique, factors that influence pricing decisions, Compute a target sales price by various approaches,  opportunity-cost analysis, make v buy, optimal product mix, equipment replacement decisions


Introduction to Budgets and the Master Budget

- principle steps in preparing a master budget, advantages, dysfunctional incentives, human relation problems caused by budgets,


Flexible Budgets and Variance Analysis

- flexible budgets and static budgets, activity-level variances and flexible-budget variances, price and quantity variances for materials and labour, variable overhead spending and efficiency variances

Capital Investment Proposal and Justification

- Describe capital-budgeting decisions and use the net-present-value (NPV) model to make such decisions. Evaluate projects using sensitivity analysis. Use the payback model and the accounting rate-of-return model and compare them with the NPV model.


Cost Allocation

- general framework, Allocation of the variable and fixed costs of service departments to other organizational units, direct and step-down methods, Allocation of joint costs to products using the physical-units and relative-sales-value methods, cost-allocation bases for overhead application to products and services, variable-costing approaches


Job Costing and Process-Costing Systems

-job-order costing v process costing, ABC system in a job-order environment, equivalent units, backflush costing with a JIT production system


Coursework & Assessment Breakdown

Coursework & Continuous Assessment
30 %
End of Semester / Year Formal Exam
70 %

Coursework Assessment

Title Type Form Percent Week Learning Outcomes Assessed
1 Continuous Assessment Continuous Assessment UNKNOWN 30 % OnGoing 1,2,3,4,5

End of Semester / Year Assessment

Title Type Form Percent Week Learning Outcomes Assessed
1 Final Exam Final Exam UNKNOWN 70 % UNKNOWN 1,2,3,4,5

Full Time Mode Workload

Type Location Description Hours Frequency Avg Workload
Lecture Not Specified Theory 4 Weekly 4.00
Total Full Time Average Weekly Learner Contact Time 4.00 Hours

Part Time Mode Workload

Type Location Description Hours Frequency Avg Workload
Lecture Not Specified Lecture 2 Weekly 2.00
Tutorial Not Specified Tutorial 2 Weekly 2.00
Total Part Time Average Weekly Learner Contact Time 4.00 Hours

Module Resources

Non ISBN Literary Resources


Core Text






Managerial Accounting: International Edition, 3/E

Braun & Tietz

Prentice Hall




Supplementary Reading






Accounting for Non-Accounting Students (8th edition)

Dyson, J.R.

Prentice Hall


Introduction to Management Accounting, 16th ed

Charles T. Horngren, Gary L. Sundem, Jeff O. Schatzberg and Dave Burgstahler

Prentice Hall


Other Resources


Additional Information