The module aims are to provide the learner with :- 1. an understanding of the role of accounting information in the decision-making process 2. an awareness of the uses of revenue and cost information in decision making 3. a knowledge of break-even analysis and profit maximisation decisions 4. an understanding of the various costing techniques used in different organisations; 5. a knowledge of the opportunities and problems using cost data and to recommend effective corrective management action based on their conclusions;
Introduction
Introduction to cost terms and concepts
Decision Making in the Organisation Context
Role of accounting information in the decision-making process,Types of decisions in service organisations
Cost Accumulation for profit measurement
Materials and stock control: stock records and pricing stores issues.Overhead analysis and reapportionment of service department overheads.Absorption procedures and over and under recovery of overheads.Calculation of product cost and pricing methods
Relevant Cost Analysis
Contribution approach to decision making.Cost – Volume – Profit analysisRole of cost information in make or buy, capacity and pricing decisions.Product mix decisions
Budgets
The budget process and budgetary planning
| Module Content & Assessment | |
|---|---|
| Assessment Breakdown | % |
| Formal Examination | 70 |
| Other Assessment(s) | 30 |