Advanced Diploma in Accounting - Management Accounting, 2018

Advanced Diploma in Accounting - Management Accounting, 2018

I. Subject objectives

a.      describe different costing terms in management accounting and problems in designing costing systems;

b.      explain the cost-volume profit relationship;

c.       apply different cost concepts for planning , control and decision making.

d.      discuss ethical issues arise in various business settings in the context of management accounting.

II. Subject topics

1. Managerial Accounting and the Business Environment

·      Work of management and the need for managerial accounting information

·      Comparison of financial and managerial accounting

·      Expanding role of managerial accounting

·      Changing business environment

·      Just-in-Time (JIT)

·      Total Quality Management (TQM)

·      Business Process Reengineering (BPR)

2. Cost Terms and System Design

·      Cost classifications

·      System design

·      Process costing

·      Job costing

·      Activity-based costing and quality management

·      Cost behaviour

·      Breakeven Analysis

·      Limiting Factors, constraints on factors of production

3. Planning and Control

·      Budgetary planning

·      Basic concepts in budgeting

·      Techniques used in budgeting

·      Behavioural aspects of budgeting

4. Standard Costing and Variances Analysis

·      Standard costing

·      Flexible budgets

·      Material mix, yield variances and labour variances

·      Variances analysis on overheads

5. Performance Evaluation /Management Control System

·      Nature of management control

·      Decentralization and related management issues, e.g. goal congruence

·      Responsibility centres (cost, profit and investment centres) and measuring performance

·      Transfer pricing

·      Non-financial performance measures

·      Application of the balanced scorecard

·      Incentive and compensation systems

6. Decision making based on cost data

·      Cost concepts for decision making

·      Introducing relevant costs and sunk costs

·      Pricing Decisions

·      Make or Buy

III. Teaching plan, 2018

Date	Topics
Jan 10 - Lecture 1 7-10pm	1. Managerial Accounting and the Business Environment ·      Work of management and the need for managerial accounting information ·      Comparison of financial and managerial accounting ·      Expanding role of managerial accounting ·      Changing business environment ·      Just-in-Time (JIT) ·      Total Quality Management (TQM) ·      Business Process Reengineering (BPR)
Jan 21 - Lecture 2 2:30pm-5:30pm	2. Cost Terms and System Design - Part 1 ·      Cost classifications ·      System design ·      Process costing ·      Job costing ·      Activity-based costing and quality management ·      Cost behaviour ·      Breakeven Analysis ·      Limiting Factors, constraints on factors of production
Jan 28 - tutorial 1 2:30pm-5:30pm	Review part 1 exercises and answers
Jan 31 - Lecture 3 7pm-10pm	2. Cost Terms and System Design - Part 2 ·      Cost classifications ·      System design ·      Process costing ·      Job costing ·      Activity-based costing and quality management ·      Cost behaviour ·      Breakeven Analysis ·      Limiting Factors, constraints on factors of production
Feb 7 - Lecture 4 7pm-10pm	2. Cost Terms and System Design - Part 3 ·      Cost classifications ·      System design ·      Process costing ·      Job costing ·      Activity-based costing and quality management ·      Cost behaviour ·      Breakeven Analysis Limiting Factors, constraints on factors of production
Feb 14 - Lecture 5 7pm-10pm	3. Planning and Control ·      Budgetary planning ·      Basic concepts in budgeting ·      Techniques used in budgeting ·      Behavioural aspects of budgeting
Feb 11- tutorial 2 10am-1:00pm	Review part 2 exercises and answers
Feb 21- tutorial 3 6:30pm-7pm	Review part 3 exercises and answers
Feb 21 - Lecture 6 7pm-10pm	4. Standard Costing and Variances Analysis - Part I ·      Standard costing ·      Flexible budgets ·      Material mix, yield variances and labour variances ·      Variances analysis on overheads Mid-term test
Feb 25- tutorial 4 2:30pm-5:30pm	Review part 3 exercises and answers Briefing on assignment 1 tasks
Feb 28 - tutorial 5 6:30pm-7:00pm	Review part 4 exercises and answers
Feb 28 - Lecture 7 7pm-10pm	4. Standard Costing and Variances Analysis - Part I ·      Standard costing ·      Flexible budgets ·      Material mix, yield variances and labour variances ·      Variances analysis on overheads
Mar 7 - tutorial 6 6:30pm-7:00pm	Review part 4 exercises and answers
Mar 7 - Lecture 8 7pm-10pm	5. Performance Evaluation /Management Control System  - Part  1 ·      Nature of management control ·      Decentralization and related management issues, e.g. goal congruence ·      Responsibility centres (cost, profit and investment centres) and measuring performance ·      Transfer pricing ·      Non-financial performance measures ·      Application of the balanced scorecard ·      Incentive and compensation systems
Mar 11 - tutorial 7 10am-1:00pm	Review part 4 exercises and answers Review part 5 exercises and answers
Mar 14 - tutorial 8 6:30pm-7:00pm	Briefing on assignment 2 tasks
Mar 14 - Lecture 9 7pm-10pm	5. Performance Evaluation /Management Control System  - Part  2 ·      Nature of management control ·      Decentralization and related management issues, e.g. goal congruence ·      Responsibility centres (cost, profit and investment centres) and measuring performance ·      Transfer pricing ·      Non-financial performance measures ·      Application of the balanced scorecard ·      Incentive and compensation systems
Mar 21 - tutorial 9 6:30pm-7:00pm	Review part 5 exercises and answers
Mar 21 - Lecture 10 7pm-10pm	6. Decision making based on cost data - Part 1 ·      Cost concepts for decision making ·      Introducing relevant costs and sunk costs ·      Pricing Decisions ·      Make or Buy
Mar 25 - tutorial 10 2:30pm-6:00pm	Review part 6 exercises and answers
Apr 4 - Lecture 11 7pm-10pm	6. Decision making based on cost data - Part 2 ·      Cost concepts for decision making ·      Introducing relevant costs and sunk costs ·      Pricing Decisions ·      Make or Buy
Apr 11 - Lecture 12 7pm-10pm	Review part 6 exercises and answers Subject revision
April 20 - exam 7pm-10pm	Exam

Assessment information

·      Deadline for assignment submission is  March 31, 2018 by email to the teacher, cc. school admin.

·      The mid-term test will be held on Feb 21, 2018

·      Exam will be held on April 16, 2018

Reading: workshop manual
Reference books:
Folk, Garrison, and. Noreen (2013), “Introduction to Managerial Accounting”, Irwin McGraw-Hill
Weygandt,, Keiso and Kimmel (2010), “Management Accounting – Tools for Business Decision Making”, John Wiley & Sons Inc

e-resource: FB group on management accounting