FACULTY OF BUSINESS
DEPARTMENT OF ACCOUNTING
ACCT 432 - COST & MANAGEMENT ACCOUNTING II (3Credits)
Prerequisite Acct 431
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.
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.
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:
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.
1. Management Accounting by Terry Lucey
2. Introduction to Management Accounting by Horngren, Sundem and Stratton
3. Management and Cost Accounting by Drury.
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.
Mid-semester exam 20%
Final examination 60%
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%
- Teacher: Bhekimpi Ndiweni