CATHOLIC UNIVERSITY OF ZIMBABWE

DEPARTMENT OF ACCOUNTING

MANAGEMENT ACCOUNTING & CONTROL 2 [AC410] (YEAR 4) COURSE

COURSE CODE (AC 410) [FOURTH YEAR, FIRST SEMESTER]

LECTURER: MR V. MASVIBA

Student Contact Time: 48 hours

1. PREAMBLE
The course introduces more specialised management accounting topics to ensure candidates
have a broader perspective in management accounting techniques used in decision-making.
The course focuses on performance management systems and measurement and control.
Management Accountants need to understand how a business should be managed and
controlled and how information systems can be used to facilitate this objective.

2. COURSE AIMS
• To develop knowledge in management accounting techniques used to support
management in planning, controlling and monitoring performance in a variety of
business contexts
• To utilise management accounting information in a variety of decision-making
situations that include activity based costing, target costing and life cycle costing

3. BODY OF KNOWLEDGE

Planning, controlling, decision making and performance measurement are key

management functions that require the provision of appropriate financial information.
The Management Accounting function of an entity through information provided by
the cost accounting function performs that aspect of performance evaluation using
techniques that include standard costing, budgetary control and divisional performance
evaluation.

4. COURSE OBJECTIVES
• Explain the nature, source and purpose of management information
• Explain and apply cost accounting techniques and prepare budgets for planning and
control
• Compare actual costs with standard costs and analyse any variances
• Explain and apply performance measurements and monitor business performance
5. COURSE CONTENT

PART A: Specialist Costing Techniques

• Marginal & Absorption Costing
• Target Costing;
• Limiting Factor Analysis; Graphical Solution, Simultaneous Equations
• Life-cycle Costing; and
• Throughput Accounting/Costing.

PART B: Standard Costing

• Standard Costing: Single Product
• Standard Costing: Multi-Product Sales Variances
• Standard Costing: Material Mix and Yield Variances;
• Planning & Operational Variances
• Behavioural Aspects of Standard costing

PART C: Cost Volume Profit Analysis; Multi Product Environment

• Nature and computations of Multi Product Break Even
• Multi Product Break Even Chart
• Multi Product Contribution Chart
• Multi Product Profit Volume Chart

PART D: Divisional Performance Measurement

• Nature and purpose of Divisional Performance Measurement
• Return on Investment [ROI]
• Residual Income [RI]
• Economic Value Added [EVA]

PART E: Operations Research/Decision Science Techniques

• Special Applications of Operations Research/Decision Science
• Transportation Problem [Least Cost, Vogel’s Approximation]
• Assignment Problem: Hungarian Method

6. STUDENT ASSESSMENT & MARK ALLOCATION

Assessment will be based on class tests and a final examination as follows:

Two (2) class tests or assignments will constitute 30%.

The Final examination will constitute 70% and shall contain four (4) compulsory questions to
be written in 3 hours.

REFERENCES:

1) Drury, C. (2010) Management and Cost Accounting, Wokingham: Van Nostrand

Reinhold.
2) Horngren, C. T. (2002) Cost Accounting: A Managerial Emphasis, Harlow: Financial
Times/Prentice Hall.
3) Lucey, T. (2012) Management Accounting, Eastleigh, DP Publications.