Managerial accounting is a fundamental course within the managerial accounting discipline. Focus is on generating and analysing information for decision making, planning and control for internal management within a company.
- Purposes and role of management accounting
- Cost concepts and categories
- Cost behaviour and cost-volume-profit analysis
- Opportunity cost
- Job-order and process costing
- Absorption costing and variable costing
- Standard costing and variance analysis
- Relevant costs for decision making
- Pricing decisions and income analysis
Learning outcome knowledge
- Students must be able to understand basic concepts within the management accounting discipline.
- Students must understand and be familiar with the main budgeting reports:profit and loss, balance sheet and liquidity.
- Be familiar with the purpose and role of management accounting.
- Be familiar with important aspects of the cost concept, including different ways to group costs, and how cost analyses must be adapted to particular corporate decision problems.
- Understand the opportunity cost concept and the importance of evaluating the total cost function.
- Understand the principles of cost-volume-profit analysis.
- Be able to allocate costs from budgets and financial reports to activities (departments) and between activities (departments).
- Understand the use of standard costing and variance analysis.
- Be familiar with the basic assumptions and weaknesses of traditional costing.
- Be able to identify decision-relevant revenues and costs.
- Understand the problems of transfer pricing, including how transfer prices can affect decision behaviour.
- Understand how pricing decisions affect profitability
- Written exam: 100%