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Module Title |
Management Accounting: Cost Systems
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Module Code |
AC223
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School |
DCUBS
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Online Module Resources
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| Module Co-ordinator | Dr Orla Feeney | Office Number | Q146 |
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Level |
2
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Credit Rating |
5
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Pre-requisite |
None
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Co-requisite |
None
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Module Aims
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This module will develop students' understanding of issues pertaining to the elements of costs and costs systems and their ability to prepare, analyse and interpret accounting information relevant to cost elements and cost systems. The module will also enhance their understanding of the interplay of management accounting and organisational management within dynamic settings
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Learning Outcomes
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On successful completion of this module, students will be able to:
1. Outline issues relating to product costs and cost systems
2. Describe the role and uses of different types of cost systems
3. Prepare product costs using the various types of cost systems
4. Explain modern cost planning and analysis techniques
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Indicative Time Allowances
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Hours
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Lectures |
24
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Tutorials |
10
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Laboratories |
0
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Seminars |
0
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Independent Learning Time |
41
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Total |
75
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Placements |
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Assignments |
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NOTE
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Assume that a 5 credit module load represents approximately 75 hours' work, which includes all teaching, in-course assignments, laboratory work or other specialised training and an estimated private learning time associated with the module.
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Indicative Syllabus
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Review of cost elements
Material Cost: Benefits and limitations of holding stocks and derivation of optimum stock holding policy (including EQQ). Material Requirements Planning, Just-in-Time.
Labour cost:
Changing significance of labour cost and labour cost accounting; identify, classify, record and charge labour costs.
Overhead cost:
Revision of the nature of overhead cost and traditional allocation methods. Problems and limitations of traditional systems.
Activity Based Costing (ABC)
Principal features of ABC. Apply ABC to product cost calculations. Benefits and limitations of ABC for product cost calculation, cost management and other purposes.
Cost Systems
A. Job and contract costing systems: Calculation of costs for jobs and contracts. Recording costs and revenue information using an integrated accounting system. An appreciation of throughput accounting and Back-flush costing.
B. Process costing systems: The nature of process costing. Recording information within a process costing system cognisant of equivalent units of production, FIFO and Weighted average approaches, losses and gains in processes.
Joint and By-Products
Methods of allocating and recording costs to joint and by-products using methods such as physical measure, sales value at split-off and net realisable value.
Absorption and variable costing
Differences between absorption and variable costing systems. Choosing between systems. Preparing profit statements using both systems and reconciliation of profits from both systems.
Cost planning and analysis
A brief introduction to some of the following topics life cycle costing; value chain analysis; business process re-engineering (BPR); customer profitability analysis (CPA); continuous imporvement (Kaizen); cost of quality
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| Assessment | | Continuous Assessment | 20% | Examination Weight | 80% |
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Indicative Reading List
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Garrison, R.H, Noreen, E.W. and Seal, W., 'Management Accounting' McGraw-Hill, 2ed, 2006.
Drury, C., 'Management and Cost Accounting' Thompson, 6ed, 2004.
Horngren, C.T., Bhimani, A., Foster, G. and Datar, S., Management and Cost Accounting', FT Prentice Hall, 3ed, 2005.
Articles from professional journals such as Financial Management (UK), Accountancy Ireland and Accountancy (UK).
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Programme or List of Programmes
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| AF | BA in Accounting & Finance |
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