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Revised: 01/12/2010



PREREQUSITE(S): None COURSE DESCRIPTION: This module builds on the knowledge and skills contained within previous study to deepen the student's critical and practical understanding of the developing role of cost accounting in assessing organisational performance. The module starts by taking a practical approach to the use of both absorption costing and marginal costing techniques, assessing the effectiveness of each technique to meet the needs of managers within the organisation. The use of standard costing to assess the performance of management against predetermined standards is considered, including the use of this technique to develop recommendations to maximise operational efficiency and the minimisation of the waste of resources. The behavioural aspects of standard costing are also considered. The module continues by considering the impact resulting from the development of new approaches, such as just-in-time management, activity-based costing and MRP and ERP systems. The issues are considered within the context of manufacturing organisations, service-sector organisations, public-sector organisations and not-for-profit organizations. LEARNING OBJECTIVES: The aims of this course are to enable students to: 1. understand the use of absorption accounting and marginal accounting techniques to assist management within organisations; 2. understand the development of the use of standard costing methods to assess organisational efficiency and secure reductions in the waste of resources; 3. understand the development of new systems and techniques to assist the internal financial 4. management and control of organisations. LEARNING OUTCOMES: Successful students will be able to: 1. calculate operating variances; 2. prepare marginal and absorption costing information; 3. evaluate and apply appropriate methods for planning , control and performance measurement. COURSE FORMAT: * 2 Semesters System: Total Student Learning Time (SLT) (L = Lecture; T = Tutorial; P = Practical; O = Others) : Face to Face Guided & Independent Learning (hr) Total Student Learning Time (hr) L T P O 36 18 0 4 102 160

* 2.5 Semesters System: Total Student Learning Time (SLT) (L = Lecture; T = Tutorial; P = Practical; O = Others) : Face to Face Guided & Independent Learning (hr) Total Student Learning Time (hr) L T P O 42 12 0 4 102 160


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7th ed.42). Costing. GRADING SCALE: A1 (77 – 100). B2 (63 – 66). Thomson Publishing. 2. .pricing and profitability analysis.56). Economic resource planning and material resource planning Final Examination BATUH: ACC304 COST AND ACTIVITY MANAGEMENT Page 2 of 2 . Marginal cost together with behaviour of the cost. C3 (50 . the effect of risk and uncertainty in decision making process. C1 (57 . limited resources. Noreen. Classification of cost on the basis of behaviour. elements and function. London.. T. BASIC TEXT(S): 1. Garrison.. Introduction to Managerial Accounting. Advantages and limitation of marginal costing. 23-26 Standard Costing Need for standard cost. Absorption costing and marginal costing – a comparative analysis. Mc Graw Hill. D2 (43 .49).. D1 (47 . Drury. F (0-39) Referral Pass (40-100). Methods of costing. A3 (70 – 72). 2002. London.. Key factors – Break even point – Break even chart – Different types Break even charts – limitations. Benefits and limitations of activity based costing activity. Management and Cost Accounting. D3 (40 . Identifying the needs of activity based costing. Marginal cost equation – profit volume rates. 5.62). Continuum. Brewer. 11-19 Decision Making Process Relevant cost and revenues. Definition of standard cost.46). B1 (67 – 69). Control through variance analysis.59). REFERENCES: 1. Direct Material Variances. Referral Fail (0-39) Note: A student is deemed to have passed the module if the student obtained 40% or better in both the final examination component and the coursework component for the module. Lucey. Cost center.. A2 (73 – 76). CLASS SYLLABUS: Lecture(s) Topics 1 -4 Distinction between management accounting and financial accounting. responsibility center. Reconciliation of budgeted and actual profit Flexible control with standard costing. 2008. Statement of cost or cost sheet. C2 (53 . 27-28 Development of New Approaches Just in time management. 20–22 Activity Based Costing Computation of overheads using traditional and activity based costing.Revised: 01/12/2010 STUDENT EVALUATION: Coursework: 40% Final examination: 60% The coursework consists of an individual assignment and in class test. 2007.52). Standard costing and Budgetary Control. 6th ed. Types of cost and elements of cost.10 Marginal Costing Principles of Marginal costing. 3rd ed. profit center and investment center. FINAL EXAMINATION FORMAT: Duration: 2 hours Students are required to answer all FOUR questions. Reports or information required by the management including management information system and expectations by the management from the management accountant. B3 (60 . Reasons for variance. Direct Labour Variances. Overhead variance – Variable and fixed sales variance. cost unit.