Module Overview

Cost Benefit Analysis & Decision Making

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;

Module Code

SMCO H2027

ECTS Credits


*Curricular information is subject to change


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


The budget process and budgetary planning

Module Content & Assessment
Assessment Breakdown %
Formal Examination70
Other Assessment(s)30