Registry
Module Specifications
Current Academic Year 2012 - 2013
Please note that this information is subject to change.
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| Description | |||||||||||||||||||||||||||||||||||||||||
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The aim of this module is to introduce students to the techniques used by management accountants to help managers in planning, control, performance evaluation and decision-making activities in companies. The module also aims to explore the organisational context of management accounting and the behavioural implications of the use of management accounting information. Using a combination of lectures and tutorials, students will develop their abilities to prepare, analyse and interpret accounting information for decision-making, performance evaluation and control purposes.The teaching methodology is sensitive to the thought processes of non-relevant graduates as they convert into accounting professionals. The lecture presentation and questions covered will be designed to assist students to learn and revise each section coherently, while understanding how all sections of the course fit together. | |||||||||||||||||||||||||||||||||||||||||
| Learning Outcomes | |||||||||||||||||||||||||||||||||||||||||
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1. Describe the decision-making processes and the role of accounting information that is used in those processes. 2. Prepare, analyse and interpret relevant accounting information and present reports to management. 3. Identify the potential behavioural implications of performance measurement and management. 4. Have an awareness of current topical issues and the likely future development of the subject. | |||||||||||||||||||||||||||||||||||||||||
All module information is indicative and subject to change. For further information,students are advised to refer to the University's Marks and Standards and Programme Specific Regulations at: http://www.dcu.ie/registry/examinations/index.shtml |
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| Indicative Content and Learning Activities | |||||||||||||||||||||||||||||||||||||||||
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Introduction. Recap of role of management accountant, organization objectives and the function of management accounting in performance measurement and control, manufacturing, service, profit-making and not-for-profit.. Budgeting and Budgetary Control. Objectives of budgeting, role of the management accountant, advantages of budgets, types of budgets, the budget period, budget administration, the master budget including cash budgets. The nature of control, objectives of a control system, feedback and feedforward controls, role of budgets in control, responsibility accounting, management by exception, zero-based budgeting, non-financial performance indicators (e.g. balanced scorecard).. Standard Costing and Variance Analysis. Effectiveness and efficiency, types of standards, revision of standards, benefits of standard costing, flexible budgets, variance analysis regarding revenue and cost items, mix and yield variances, accounting for variances, investigation of variances.. Behavioural Issues. Theories of human behaviour, performance evaluation, motivation, aspiration levels and perception, inertia and slack, participation, communication and feedback, reward and effort, controllability.. Cost Behaviour and Cost Estimation. Cost behaviour and different cost objects, linear and non-linear cost behaviour patterns.Approaches to estimating cost functions including regression, linear and non-linear functions, learning curves.. Routine Decision Making - CVP Analysis. Profit volume ratios, breakeven analysis, assumptions of accountant's CVP model, margin of safety, uncertainty and CVP analysis.. Non-Routine Decision Making. Incremental costs, relevant costs, opportunity costs, sunk costs, relevant cost analysis, limiting factors and the application of linear programming.. Decision-making, Risk and Uncertainty. Use of probabilities, expected values and standard deviation, limitations of expected values.Risk preferences and managing attitudes to risk (e.g. applying maxmiax, maximin and minimax).. Pricing Decisions. Economists approach: Price elasticity of demand v Accountants approach: cost plus, target costing. Pricing strategies, Product lifecycle and pricing.. An Introduction to Control and Performance Measurement Aspects of Divisionalised Structures:. 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).. Current Issues in Management Accounting. Gap between the conventional wisdom and practical application of management accounting. Relevance of management accounting in a modern manufacturing environment - implications for product costing, decision-making.. | |||||||||||||||||||||||||||||||||||||||||
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| Indicative Reading List | |||||||||||||||||||||||||||||||||||||||||
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| Other Resources | |||||||||||||||||||||||||||||||||||||||||
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| Programme or List of Programmes | |||||||||||||||||||||||||||||||||||||||||
| PBSSA | PG Exchange(Business School) | ||||||||||||||||||||||||||||||||||||||||
| PDA | Professional Diploma in Accounting | ||||||||||||||||||||||||||||||||||||||||
| Timetable this semester: Timetable for AC545 | |||||||||||||||||||||||||||||||||||||||||
| Date of Last Revision | 26-APR-10 | ||||||||||||||||||||||||||||||||||||||||
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