| CODE | EMA5901 | ||||||||
| TITLE | Financial Control in Product Development | ||||||||
| UM LEVEL | 05 - Postgraduate Modular Diploma or Degree Course | ||||||||
| MQF LEVEL | 7 | ||||||||
| ECTS CREDITS | 5 | ||||||||
| DEPARTMENT | Faculty of Economics, Management and Accountancy | ||||||||
| DESCRIPTION | This study-unit will provide students with a thorough understanding of the different ways in which costs can be classified and of how overheads can be assigned to cost objects using absorption and activity-based costing in the context of job costing. The characteristics of this costing method will then be compared and contrasted to those prevailing in process costing. The closely related problems posed by joint and by-product costing (including further processing decisions) will also be examined. The discussion will then move on to explore the implications of capital investment decisions, which represent the most important decisions that an organization makes, and the different methods of appraising capital investments will be delved into. Finally, the various approaches (such as target and life-cycle costing) that focus on cost reduction, rather than on the traditional cost containment will be analyzed. Study-unit Aims: The aim of this study-unit is to provide engineers, and science graduates, with an insight into selected cost accounting fundamentals that could be related to product development, thereby enabling candidates to understand the concepts/techniques used by cost/management accountants whilst also enhancing the process of inter-communication between the different professionals. Learning Outcomes: 1. Knowledge & Understanding: By the end of the study-unit the student will be able to: - Calculate product costs using absorption costing and activity-based costing. - Describe the characteristics of different types of costing methods, and correctly identify the costing method applicable to a specified manufacturing concern. - Apply each type of costing method by carrying out relevant computations. - Use the traditional and the DCF techniques of capital expenditure appraisal. - Explain and evaluate the effectiveness of the various approaches that fall within the sphere of cost management. 2. Skills: By the end of the study-unit the student will be able to: - Explain the different ways of arranging, and processing, data so that cost statements suit the specific purpose for which they are intended. - Generate, and interpret, reports that are relevant to organizational needs. - Support specific proposals made to management by a quantitative analysis, making use of the correct cost/management concepts and tools. - Participate meaningfully in decisions where a longer term view is called for. - Assist management by identifying areas for improvement and by suggesting 'realistic' solutions thereto. Main Text/s and any supplementary readings: Prescribed textbook: - Colin Drury, Cost and Management Accounting: An Introduction, Cengage Learning. (latest edition) Supplementary reading: - Peter Atrill, Eddie McLaney, Management Accounting for Decision Makers, Pearson. (latest edition) |
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| STUDY-UNIT TYPE | Lecture and Independent Study | ||||||||
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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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