Advanced Management Accounting 2 focuses on the development of knowledge and skills in the application of management accounting to assist management in a range of strategic planning, control and decision-making situations.
Decision making
Cost-volume-profit analysis (multiple products)
The concept of opportunity and relevant costs.
Limiting factors, make or buy decisions
Problems of shut down and divestment decisions.
Pricing decisions
Profitability analysis
Incorporating uncertainty into decision making
Budgeting and Budgetary Control
Development of mission statements, strategies and objectives.
Analysing the external environment and alternative competitive strategies
Purposes and benefits of budgeting
Types of budgets and the budgetary process
Identification of key budget factor and budget period
Preparation of functional budgets for operating and non-operating functions.
Preparation of cash budgets and the master budget.
The limitations of incremental budgeting,
Zero based budgeting, activity based budgeting.
Flexible budgeting.
Cost reduction and value analysis
Alternative approaches to budgeting including beyond budgeting
Standard Costing and Variance Analysis
Basic principles of standard costs; establishment of standards.
Types of standards.
Preparation of a standard product cost.
Variance analysis covering:
Materials: price and usage; mix and yield
Labour: rate and efficiency;
Variable overhead: expenditure & efficiency variances;
Fixed overhead: expenditure and volume variances,
capacity and efficiency variances.
Sales: price and volume ;mix and quantity.
Revision of standards, planning and operational variances
Reconciliation of actual and budgeted profit.
Standard cost book-keeping.
Performance Measurement and Control
Principles of an effective management control system
Financial and non-financial performance measures including the balanced scorecard.
Divisional economic and managerial performance measurement including return on investment, residual income and economic value added.
Benchmarking
Transfer pricing
Strategic Management Accounting
An understanding of strategic management accounting--its uses and advantages
Conventional management accounting: strategic problems:
key success factors
process improvements/ elimination of non-added value activities
Strategic cost analysis--consumer benefits and costs.
Specialist Cost and Management Accounting Techniques
Target costing
Life-cycle costing
Throughput accounting
Environmental accounting
Students will be exposed to formal lectures and will also engage in problem solving to apply the concepts introduced and to develop critical abilities. Formative feedback will be provided by assessing and discussing students solutions to assigned problems.
| Module Content & Assessment | |
|---|---|
| Assessment Breakdown | % |
| Formal Examination | 70 |
| Other Assessment(s) | 30 |