SOLUSI UNIVERSITY

FACULTY OF BUSINESS
DEPARTMENT OF ACCOUNTING
ACCT 232/432 - COST & MANAGEMENT ACCOUNTING II (3Credits)
COURSE OUTLINE
Prerequisite ACCT 231/431

COURSE DESCRIPTION
This course focuses on the internal uses of cost and financial accounting data for management
planning, control and decision making. As such, it involves a detailed study of static and flexible
budgeting, responsibility accounting and reporting, standard costs and variance analysis, capital
expenditure planning and evaluation and alternative choice decisions. Relevant costs and
performance evaluation topics are also covered.

COURSE OBJECTIVES
This course is designed to achieve the following objectives:
1. To acquire knowledge needed to select and use the accounting information necessary for
managerial decision-making.
2. To develop skills in solving management problems using accounting data.
3. To understand certain kinds of accounting information needed by managers along the
major functions of management

COURSE PROCEDURES AND REQUIREMENTS

a. Each session to begin with a devotion and prayer.
b. All students are encouraged to participate during devotion, eg by giving testimonies or
short sermons that will encourage other students.
c. As stewards of time, students are expected to be punctual in all classes and are expected
to submit their assignments as they fall due.
d. Attendance in all scheduled class appointments is mandatory.
e. Each student is encouraged to participate in the class activities meaningfully.
f. Students are encouraged to work in small groups but should refrain from duplicating or
photocopying other students’ work. All assignments must reflect each student’s work
and ingenuity.

COURSE CONTENT
1. The Nature and Objectives of Management Accounting
2. The Budgeting Process
3. Responsibility Accounting and Reporting
4. Standard Costs and variance analysis
5. Direct Costing and Cost-Volume-Profit Analysis
6. Differential Cost Analysis
7. Selecting Relevant data for decision making and product pricing.
8. Capital budgeting
9. Decentralised operations and transfer pricing.
10. Strategic Management accounting.
11. Contingency theory and organisational and social aspects of Management accounting
12. Control Reports and their use.
13. Programming and budgeting
14. Evaluation of performance
15. Capital investment decision
16. Financial statement analysis
17. Statement of cash flows

METHODS OF INSTRUCTION
I will utilise the following methods of instruction:
1. Lecture
2. Assignments
3. Quizzes
4. Exams

If you have, or suspect you may have, any type of disability or learning problem that may require
extra assistance or special accommodation, please speak to me privately after class or during my
office hours as soon as possible so I can help you obtain any assistance you may need to
successfully complete this course.

TEXTBOOKS
1. Management Accounting by Terry Lucey
2. Introduction to Management Accounting by Horngren, Sundem and Stratton
3. Management and Cost Accounting by Drury.

OTHER REFERENCES
1. Management Accounting - CIMA 12
2. Management Accounting – CIMA 13
Any Management Accounting books you can find.

EXAMINATION AND GRADING SYSTEM

1. Quizzes: Quizzes will be unannounced, with a possibility of a quiz everyday either
before or after the lesson. It is, therefore, very essential to read the chapters before class.

2. Assignments: Assignments are critical to successfully completing this course.

Assignments are to be handed to me at the end of each class (on the day that they are
due), before I leave the classroom. Assignments put in my office, or under my office
door WILL Not be accepted.

3. Examinations: - A mid semester exam and a comprehensive Final exam will be given
at the allocated time.

2. The final grade will be based on the following weights.

Assignments 5%
Test/Quizzes 15%
Mid-semester exam 20%
Final examination 60%
Total 100%

3. The grading scale will be as follows:

A 90 – 100% A- 80 – 89% B+ 75 – 79%

B 70 – 74% B- 65 – 69% C+ 60 – 64%
C 50 – 59% D 45 – 49% F 0 – 45%