Introduction to Management Accounting

Module Provider: Business Informatics, Systems and Accounting
Number of credits: 10 [5 ECTS credits]
Level:4
Terms in which taught: Spring term module
Pre-requisites:
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Module version for: 2016/7

Summary module description:
This module provides an introduction to management by accounting studying costing classifications and their applications.

This module is delivered at University of Reading, University of Reading Malaysia and Beijing Institute of Technology.

Aims:
This module aims to provide students with an understanding of the techniques, principles and underlying concepts relating to the analysis of costings.
This involves a consideration of the technical language and practices of management accounting and the theoretical and empirical evidence concerning the development and current practice of management accounting.
Assessable learning outcomes:
By the end of the module it is expected that students will be able to:

1. Explain the basic role of management accounting in providing information to managers for decision making, planning and control.

2. Explain basic concepts and processes to determine product and service costs;
i) Identify direct and indirect costs for cost units.
ii) Understand cost classification for planning and decision-making based on cost behaviour.
iii) Produce a standardised cost card.

3. Explain the concept of Absorption costing. Calculate the overhead absorption rate per unit.

4. Explain the concept of marginal cost and marginal costing to calculate contribution and produce solutions to short term problems.

5. Apply cost classification to cost-plus pricing techniques. Calculate Mark-ups and margins.

6. Organise and present information clearly, succinctly and in the required format, both under timed conditions and in assessed work.

Additional outcomes:
The module also aims to encourage the development of oral communication skills and the students? effectiveness in group situations. Structured activities are designed to develop independent learning, including reflective, adaptive and collaborative learning. Students are encouraged to develop additional IT skills through use of relevant web resources and electronic communication techniques, including Blackboard.

Outline content:
- The role and nature of management accounting;
- Cost classification and behaviour;
- Direct and indirect costing
- Cost behaviour patterns ? Variable, fixed and semi fixed costs.
- Cost assignment and full (absorption) costing;
- Marginal costing and contribution calculations
- Cost plus pricing decisions
- Mark up and margin calculations

Brief description of teaching and learning methods:
The module is delivered through a combination of interactive lectures which will introduce students to topic areas and practical workshops where students will consolidate their understanding through guided question practice and discussion.

Contact hours:
Lectures 20
Tutorials 2
Guided Independent Study 74
Total Hours by Term 96

Summative Assessment Methods
Written Exam 100%

Other information on summative assessment:
Formative assessment methods:
Formative assessments are available in the text book for all topics. In addition, exam style questions are available on Blackboard and students will practice a mock exam in revision workshop. Marking guides and feedback are provided where appropriate so that students can assess their own performance.

Length of examination:
1.5 hour closed book unseen written exam in the Summer term.

Requirements for a pass:
A minimum mark of 40% is required for a University pass.

Reassessment arrangements:
Reassessment is through exam only in August / September of the same year.