| CODE | ACC1731 | ||||||||
| TITLE | Financial Accounting and Control 2 | ||||||||
| UM LEVEL | 01 - Year 1 in Modular Undergraduate Course | ||||||||
| MQF LEVEL | 5 | ||||||||
| ECTS CREDITS | 4 | ||||||||
| DEPARTMENT | Accountancy | ||||||||
| DESCRIPTION | This study-unit is designed to provide students with a good understanding of the more relevant management accounting principles and techniques. Study-unit Aims: - Introduce students to selected management accounting principles and techniques; - Help students decide which techniques are more suitable to different circumstances; - Guide students on how to prepare, interpret and criticise cost computations, pricing strategies and budgets; - Explain to students how variances from planned or desired outcomes are investigated; - Outline cost behaviour patterns and discuss basic principles of the break-even chart and cost-volume-profit analysis. Learning Outcomes: 1. Knowledge & Understanding By the end of the study-unit the student will be able to: - Describe the framework of Management Accounting and the Relationship between Management Accounting, Cost Accounting and Financial Accounting; - Explain the importance of Cost Accounting, understand the different types of costs and be conversant with traditional cost recovery and activity-based costing techniques; - Identify the principal objectives of budgetary control and have a good working knowledge of the budget setting process; - Explain the nature and importance of standard costing and outline the most important variances; - Explain the nature of short-term business decisions within the context of the marketing strategy, focusing on aspects such as pricing, cost behaviour, cost volume profit analysis and segmental profitability; - Describe the concept of contribution analysis, capacity utilization and the theory of constraints; - Analyse and apply relevant cost concepts in decision-making scenarios, including the identification and consideration of relevant costs and benefits in various business situations; - Demonstrate a comprehensive understanding of inventory control, encompassing inventory valuation methods, ordering systems, and optimization techniques to achieve cost-effective and efficient inventory management. 2. Skills By the end of the study-unit the student will be able to: - Compute costing and pricing estimates using both traditional cost recovery and activity-based costing techniques; - Construct a cash budget as well as other operating and manufacturing budgets, and link these together and to the master budget; - Calculate and interpret variances; - Investigate some of the decisions for which contribution analysis is useful; - Analyse the cost of spare capacity and determine how best to utilize capacity under the limited capacity approach and under the theory of constraints; - Apply relevant costing principles to decision making including make vs buy decisions and pricing decisions; - Employ effective inventory control methods, such as economic order quantity (EOQ) to optimize stock levels, minimize holding costs, and enhance overall supply chain efficiency. Main Text/s and any supplementary readings: - Textbook and practice kit: Accounting for Managers: Interpreting Accounting 福利在线免费 for Decision Making by Paul M. Collier (latest edition). |
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| STUDY-UNIT TYPE | Lecture and Tutorial | ||||||||
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The University makes every effort to ensure that the published Courses Plans, Programmes of Study and Study-Unit information are complete and up-to-date at the time of publication. The University reserves the right to make changes in case errors are detected after publication.
The availability of optional units may be subject to timetabling constraints. Units not attracting a sufficient number of registrations may be withdrawn without notice. It should be noted that all the information in the description above applies to study-units available during the academic year 2025/6. It may be subject to change in subsequent years. |
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