Management Accounting

Overview

Management accounting has the purpose of identifying, measuring and communicating information to permit management and employees in an organisation to make informed judgements and decisions in an ethical way. It is concerned with the provision of both financial and non-financial information to decision-makers. Management accounting requires the understanding of both decision-making processes and different information needs of the users of accounting information. The module begins by revisiting the basic concepts of management accounting and discussing its role in the importance of the changing environment and the impact it has on management accounting systems. In particular, the module examines planning control and performance measurement: budgeting; feedback and feedforward control; behavioural aspects of control systems; standard costing; and advanced aspects of cost allocation systems. The module also examines advanced aspects of short-term decision making: the decision-making process; rational management, programmed and non-programmed decisions; relevant costs; limiting factors and linear programming; the learning curve; risk and uncertainty in decision making. The role of big data and data analytics in the functions of management accounting are also explored in the module.

Learning Objectives

At the end of this module students should be able to:

1. Produce and present information for planning, controlling and decision making in a variety of organisations;
2. Interpret management accounting information;
3. Critically evaluate the use of management accounting techniques; and
4. Evaluate the importance of cost information and costing systems to the successful strategic management of organisations.

Skills

The development of problem-solving skills through analysis, interpretation and evaluation of relevant management accounting information and management control theories. At the end of this module students should have gained experience in working in small groups and making presentations.

Assessment

Students must achieve an overall mark of 40% in the module to pass