MACC H2005: Management Accounting 2

Transcription

1 Short Title: Management APPROVED Full Title: Management Module Code: MACC H2005 Credits: 5 NFQ Level: 6 Field of Study: Accounting and taxation Module Delivered in 3 programme(s) Reviewed By: MARTIN NOLAN Module Author: Gail Sheppard Module Description: This module requires a knowledge and comprehension of Management Accounting 1. The module aims to provide students with a comprehensive understanding of the management accounting systems and techniques employed by the Management Accountant. This knowledge provides the student with techniques relevant to problem solving in a work situation. Learning Outcomes On successful completion of this module the learner will be able to: LO1 LO2 LO3 LO4 LO5 LO6 Describe and explain the basic theory underlying the techniques used by a Management Accountant to cost products and services using different costing systems. Demonstrate the costing of products and services using marginal and absorption costing. Identify and explain cost behaviour patterns used in cost volume profit analysis. Demonstrate the use of cost volume profit analysis techniques used in decision making. Evaluate long-term investment opportunities through the use of investment appraisal techniques. Describe and explain the theory behind budgeting and standard costing. Prepare and present budgets. Compute, interpret and investigate variances using variance analysis. Pre-requisite learning Co-requisite Modules No Co-requisite modules listed

2 Module Content & Assessment Content (The percentage workload breakdown is inidcative and subject to change) % Marginal costing and absorption costing Theories behind marginal and absorption costing; compute profits using marginal and absorption costing; accounting treatment of fixed production overheads using marginal and absorption costing; accounting treatment of selling and distribution overheads and administration expenses; reconciliation of marginal and absorption profits and losses for a period; reasons for the use and problems of marginal and absorption costing. Cost volume profit analysis Relationship between contribution and volume; CVP approach; breakeven analysis: target profit, C/S ratio, margin of safety and breakeven point; contribution and profit volume graphs; operating leverage; CVP in a sales mix; separation of semi-variable costs using high-low method; assumptions of CVP; use of marginal costing in decision making. Capital investment appraisal Time value of money using compounding and discounting; evaluation of long-term investment opportunities through the use of: net present value, internal rate of return, accounting rate of retun and payback; benefits and drawbacks of investment appraisal techniques; apply sensitivity analysis to cash flows. The budgeting process Budgetary control process; budgeting terminology; advantages and disadvantages of budgeting; stages in the budgetary process; preparation of functional budgets and the master budget; theory of incremental budgets; zero-based budgets and rolling budgets; the use of IT in relation to budgeting. Standard costing and variance analysis Operation of a standard costing system; establishing cost standards in manufacturing and service industries; use of standards to minimise waste and maximise efficiency; type of cost standards; purposes of standard costing; variance analysis for sales and cost variances; reconciliation of budget and actual profits using variance analysis; the use of IT in relation to standard costing and variance analysis % 20.00% 10.00% 25.00% 25.00% Assessment Breakdown % Course Work 30.00% End of Module Formal Examination 70.00% Course Work Assessment Type Assessment Description Outcome addressed % of total Assessment Date Continuous Assessment The continuous assessment will take the form of an individual assessment. This will be an in-class, time-constrained exam. 1,2, n/a End of Module Formal Examination Assessment Type Assessment Description Outcome addressed % of total Assessment Date Formal Exam End-of-Semester Final Examination 1,2,3,4,5, End-of-Semester IT Tallaght reserves the right to alter the nature and timings of assessment

3 Module Workload Workload: Full Time Workload Type Workload Description Hours Frequency Average ly Learner Workload Lecture Class-based instruction 3.00 Every Independent Learning Study and question practice 6.00 Every Total ly Learner Workload 9.00 Total ly Contact Hours 3.00 Workload: Part Time Workload Type Workload Description Hours Frequency Average ly Learner Workload Lecture Class-based instruction 2.00 Every Independent Learning Study and question practice 7.00 Every Total ly Learner Workload 9.00 Total ly Contact Hours 2.00

4 Module Resources Required Book Resources Gail Sheppard 2011, Management Accounting A Practical Approach, Gill & Macmillan [ISBN: ] Recommended Book Resources Drury C,, Cost Accounting and Management Accounting, An Introduction, 6th Ed., Thomson Lucey T, Costing, 9th Ed., DP Publications Horngren, Cost Accounting: A Managerial Emphasis, 12th Ed., Prentice-Hall Owler & Brown, Wheldon s Cost Accounting, 11th Ed., Pitman Brown G, Cost and Management Accounting 1, 5th Ed., Longman Recommended Article/Paper Resources Accountancy UK Journal ICAEW n/a Accountancy Ireland Journal ICAI n/a Accountancy Age n/a Accountancy Plus Journal ICPAI n/a Business and Finance Journal n/a Financial Times Newspaper n/a Sunday Business Post Newspaper n/a This module does not have any other resources

5 Module Delivered in Programme Code Programme Semester Delivery TA_BAACC_B Bachelor of Business (Honours) in Accounting & Finance 4 Mandatory TA_BAACC_D Bachelor of Business in Accounting & Finance 4 Mandatory TA_BACCT_C Higher Certificate in Business in Accounting 4 Mandatory