Registry
Module Specifications
Archived Version 2010 - 2011
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Module Aims | |||||||||||||||||||||||||||||||||
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Learning Outcomes | |||||||||||||||||||||||||||||||||
On successful completion of this module, students will be able to:
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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. | |||||||||||||||||||||||||||||||||
Indicative Syllabus | |||||||||||||||||||||||||||||||||
Decision Making in the Organisational Context Models of the decision-making process. The role of accounting information in the decision-making process. Types of decisions in manufacturing, service and not-for-profit organisations.
Cost Behaviour
Importance for decision making. Linear and non-linear cost behaviour patterns. Approaches to estimating cost functions, including statistical and non-statistical approaches. The learning curve, including the learning curve formula.
Relevant Cost Analysis
Relevant and irrelevant costs, opportunity costs, sunk costs. Marginal costing in the mananagement decision process. Preparation and interpretation of information for specific types of decisions, for example make or buy, sell or process further, continue or close down, pricing and special order decisions. Derivation of long run costs for strategic decision-making. Qualitative factors in decision making. An introduction to current issues in decision making.
Product mix decisions when capacity constraints exist
Meaning of capacity constraints/limiting factors and computation of product mix decisions for single limiting factor situations, using the simple contribution per unit of the limiting factor rule. Application and preparation of information using linear programming (graphical approach only).
Pricing
External pricing strategies and decisions: cost-based, market-based, special orders. Uncertainty and Decision Making The role of decision models. Sensitivity, decision-tree and probability analyses. Expected monetary value and utility value. Buying perfect and imperfect information. Decentralisation and Performance Evaluation Reasons for decentralisation. Cost centres, profit centres and investment centres- including behavioural issues in the application of performance measures. An introduction to measurement of divisional performance, strengths and weaknesses of various measures. An introduction to the issue of transfer pricing (including relevance to international operations). | |||||||||||||||||||||||||||||||||
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Indicative Reading List | |||||||||||||||||||||||||||||||||
Recommended: Seal, W.B., Garrison, R.H. and Noreen, E. Management Accounting, 3e, London: McGraw Hill Other Resources: Drury, Colin 2008, Management and Cost Accounting, 7th Ed., South Western Cengage Learning Clarke, Peter, 2008, Management Accounting, Chartered Accountants Ireland CIMA, Financial Management magazine HBS Press, Harvard Business Review | |||||||||||||||||||||||||||||||||
Programme or List of Programmes | |||||||||||||||||||||||||||||||||
AF | BA in Accounting & Finance | ||||||||||||||||||||||||||||||||
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