Module Specifications..
Current Academic Year 2023 - 2024
Please note that this information is subject to change.
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Repeat examination |
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Description The objective of this module is to introduce students to core concepts of management accounting and to develop their understanding of key management accounting approaches, practices and techniques which enable planning and control activities within organisations. Students will learn how to prepare, analyse, interpret, critically evaluate and use data for budgetary control and performance management. The knowledge and skills developed in this module are highly relevant to the world of accounting work and to students’ future careers as professional accountants or in other accounting and finance roles. | |||||||||||||||||||||||||||||||||||||||||
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Learning Outcomes 1. Explain the nature, scope and role of management accounting in organisations, recognising key contemporary organisational concerns (e.g. sustainability, ethics, responsible business, globalisation, etc). 2. Differentiate and apply key cost terms, concepts and classifications. 3. Discuss the role of management accounting in organisational planning and control (performance management) and elaborate budgetary control concepts. 4. Prepare functional budgets and the master budget (including a budgeted statement of profit and loss, a budgeted statement of financial position and a cash budget). 5. Outline and apply the principles of standard costing. 6. Calculate and interpret cost variances (materials labour, variable overhead, fixed overhead) and sales variances. 7. Prepare flexible budgets, reconcile actual and budgeted performance and discuss different tools which can be used to interpret financial performance). 8. Explain the role of non-financial performance measurement and evaluate new tools which combine financial and non-financial performance management, such as the Balanced Scorecard. | |||||||||||||||||||||||||||||||||||||||||
All module information is indicative and subject to change. For further information,students are advised to refer to the University's Marks and Standards and Programme Specific Regulations at: http://www.dcu.ie/registry/examinations/index.shtml |
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Indicative Content and Learning Activities
The nature, role and scope of management accounting in organisationsThe nature of management accounting and the need for management accounting information; the differences between and, overlap of, management accounting and financial accounting; the dynamic internal and external operating environment of management accounting; ; the range of organisations in which management accounting plays a role, i.e. profit-making v not-for-profit organisations; designing management accounting systems; a management accounting perspective on corporate governance, professional and business ethics.Cost terms, concepts and classificationsThe nature of costs; cost objects and the purpose of cost classification; alternative cost classifications including: elements of manufacturing costs, period v product costs, cost behaviour (fixed, variable, stepped-fixed, mixed).Budget settingThe role of management accounting in organisational strategic planning and control; the nature and purpose of budgets; types of budgets – long-term v short-term, capital v revenue budgets; approaches to budget-setting –incremental budgeting, zero-based budgeting, rolling forecasts etc; the budgeting process - budget period, critical budget factors and budget assumptions, the annual budget cycle, organisation and administration of budgeting. Preparation of functional budgets (sales, materials, labour, overhead, inventory etc); preparation of the master budget including the budgeted P&L account, statement of financial position and cash budget. Advantages and criticisms of budgeting.Standard costing and an introduction to variance analysisThe purpose of standard costing; responsibility accounting and management by exception; types of standards and setting standard costs; a general model for variance analysis; calculating and interpreting price and efficiency variances for materials, labour and variable overhead; advantages of standard costing and potential challenges.Flexible budgets, more detailed variance analysis, and reconciling actual and budgeted performanceFlexing the budget and the identification of the flexible budget and volume variances; calculating and interpreting more advanced cost variances (e.g. fixed overhead variances; mix and yield variances concerning materials and labour efficiency) and sales variances (including mix and yield); planning and operating variances; reconciliation of budgeted to actual profit/contribution; appreciation of the significance of variances and possible reasons for occurrence; variance investigation and analysis tools.Holistic performance management – financial and non-financial performance measuresBehavioural issues associated with budgetary control; holistic approaches to organisational performance management (combining financial and non-financial information), including the Balanced Scorecard. | |||||||||||||||||||||||||||||||||||||||||
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Indicative Reading List
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Other Resources 58509, On-line platform, McGraw Hill, 0, McGraw Hill Connect, | |||||||||||||||||||||||||||||||||||||||||
Programme or List of Programmes
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