acc 1511-management accounting fundamentals
TRANSCRIPT
INTERNATIONAL ISLAMIC UNIVERSITY MALAYSIA
COURSE OUTLINE
Kulliyyah / Institute Economics & Management Sciences
Department / Centre Accounting
Programme ENM
Name of Course / Mode Management Accounting Fundamentals
Course Code ACC 1511
Name (s) of Academic staff / Instructor(s)
Rationale for the inclusion of the course / module in the programme
This course is a foundation course for management accounting, one of the key areas in accounting. It also provides a good and strong foundation for business and economics.
Semester and Year Offered Semesters I, II & III
Status Core
Level 1
Proposed Start Date Semester I, 2007/2008
Batch of Student to be Affected Intake of 2007/2008 onwards
Total Student Learning Time (SLT)
Face to Face
Total Guided and Independent Learning
Lect
ure
Ass
essm
ents
42 10.5 Total Guided = 52.5
Total Independent Learning = 77.5 Total hours = 130
Credit Value (hours) 3
Pre-requisites (if any) ACC 1001 Financial Accounting Fundamentals
Co-requisites (if any) Nil
Course Objectives
The objectives of this course are to: 1. To comprehend the basic concepts of costs and appreciate the
different classification of costs for various purposes; 2. To understand the various management tools in making
informed decisions; 3. To appreciate the contribution made by information
technology to management accounting.
Learning Outcomes
On completion of this course, students should be able to:
1. Define managerial accounting and describe its role in a commercial environment
2. Discuss the major differences between managerial and financial accounting;
3. Describe the various cost classifications to analyse cost within the business organization and to explain the relationship between cost behavior, cost estimation and cost prediction;
4. Compare and contrast variable/marginal costing; 5. Describe the basic concept of CVP analysis and its application
in business decision making; 6. Prepare functional budgets, income statements, balance sheet
and a cash budgets; 7. Demonstrate and apply the concept of relevant cost and
benefit in special order, outsourcing, add/drop product line/segment and limiting factors decision.
8. Compute prices using cost plus pricing, target costing, and time and material pricing.
Transferable Skills:
Skills How they are developed
Assessment method
Team work Groups formation Group Exercise Critical
Thinking Groups Formation Group Exercise
IT skills Groups Formation IT Assignment
Teaching-Learning / assessment strategy
Type of Assessment Description
Lecture Oral reports and judge colleagues works
Assignments Group assignments, report and presentation and IT software
assignments
Quiz 5 quizzes
Course Synopsis
This course is designed to equip students with the analytical tools required to understand the underlying cost concepts, management planning and decision making. The course focuses on the management accounting methods and techniques that help managers make more informed decisions in analyzing cost, volume and profit relationship, budgeting practices and its process, pricing and other short term decision making issues.
Mode of Delivery Lecture, Discussion
Assessment Methods and Type/Course Assessement State weightage of each type of assessment.
LO Method % 1 - 7 Quiz 10 3 - 7 Group Exercise 15 1 - 4 Mid-Term Test 20 5 IT Assignment 5 1- 7 Final Examination 50
TOTAL 100
Mapping of course / module to the Programme Learning Outcomes
Learning Outcome of the course Programme Outcomes 01 02 03 04 05 06 07 08 09
1. Define managerial accounting and describe its role in a commercial environment
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2. Discuss the major differences between managerial and financial accounting
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3. Describe the various cost classifications to analyze cost within the business organization and to explain the relationship between cost behavior, cost estimation and cost prediction
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4. Compare and contrast variable/marginal costing √ √
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5. Describe the basic concept of CVP analysis and its application in business decision making
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6. Prepare functional budgets, income statements, balance sheet and a cash budgets
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Demonstrate and apply the concept of relevant cost and benefit in special order, outsourcing, add/drop product line/segment and limiting factors decision. explain the relationship between cost behaviour, cost estimation and cost prediction
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8. Compute prices using cost plus pricing, target costing, and time and material pricing √
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Content outline of the course / module and the SLT per topic
Weeks Topics Learning Hours
Task/Reading (author/page)
1 Introduction The role of management and the need for
managerial accounting information Managerial vs Financial accounting Managerial accounting in different types of
organizations
9
Hilton- Chapter 1
2
Cost Behaviour And Estimation Basic cost management concepts Costs classification Cost behaviour patterns Using costs behaviour patterns to predict costs Cost estimation
9
Hilton- Chapter 2
3,4 Absorption And Marginal /Variable Costing Theory of absorption costing and variable
costing External and internal reporting Absorption costing vs variable costing and its
impact on profit
18
Hilton- Chapter 8 Quiz#1 on C1 & C2 (29-30/12/11)
5,6&7 Cost-Volume-Profit Analysis The basics of CVP analysis Break even analysis Target profit analysis Applying CVP analysis (safety margin, change in
fixed expenses, change in the unit contribution margin)
CVP analysis with multiple products Cost structure and operating leverage Assumptions underlying CVP analysis
25
Hilton- Chapter 7 Quiz#2 & Group Exercise#1 on C3 (10–11/01/11)
28/01/11
MID-TERM EXAMINATION Friday: 3:00 – 5.00 pm.
Coverage: until C4
31/01/11 -06/02/11
MID-TERM BREAK
9, 10&11 Profit Planning – Budget Purposes of budgeting systems The master budget (sales budget, production
budget, direct material budget, direct labour budget, manufacturing overhead budget, budgeted schedule of cost of goods manufactured and sold, budgeted income statement, budgeted balance sheet)
Profit Planning & IT
The introduction of flexible budgets and performance report
The introduction of capital budgeting IT and budgeting (preparing budget using
computer)
27
Hilton- Chapter 9 Quiz#3 & Group Exercise#2 on C4 (14-15/02/11) Hilton- Chapter 11 & 16
12&13 Decision Making – Relevant Costs And Benefits Steps in decision making process Quantitative vs qualitative analysis Relevant costs and benefits Analysis of special decisions
¯ accept or reject special offer ¯ outsource a product or service ¯ adding or dropping product lines and other
segments ¯ utilization of a constrained resource The Islamic perspectives on decision making
18
Hilton- Chapter 14 Quiz #4 & Group Exercise#3 on C5 (02-03/03/11)
14&15 Cost Analysis For Pricing Decisions Major influences on pricing decisions Economic profit-maximizing pricing Cost plus pricing
¯ Absorption-cost pricing formula ¯ Variable cost pricing formula
Strategic pricing of new products Target costing Pricing for service industry: Time and material
pricing Competitive bidding
18
Hilton- Chapter 15 Quiz#5 & Group Exercise#4 on C6 (14-15/13/11)
15 Islam and Management Accounting 6 PowerPoint
Required references supporting the course 1. Hilton, R.W. (2009). Managerial Accounting: Creating Value in a Dynamic Business
Environment. (8th Ed). New York: McGraw-Hill. 2. Sulaiman, M. and Nik Ahmad, N.N. (2008).Management Accounting Fundamentals Questions
(for internal circulation only).
Recommended references supporting the course
1. Brewer, P.C., Garisson, R.H., & Noreen, E.W. (2008). Introduction to Managerial Accounting. (4th ed.). New York: McGraw-Hill.
2. Horngren, C.T. et al. (2009). Cost Accounting: A Managerial Emphasis. (13th ed.). New Jersey: Pearson Education.
3. Horngren, C.T. et al. (2008). Introduction to Management Accounting. (14th ed.). New Jersey: Pearson Education.
Prepared by:
_______________________ Name
Assistant Professor
Checked by:
_______________________ Name Head
Approved by:
_______________________ Name Dean
At the end of the programme, students are able to:
1. Identify, classify, record, summarize and report economic events which affect organizations. Define and explain basic concepts in financial and managerial accounting as well as taxation, finance and audit, whilst incorporating the Islamic perspective where relevant.
Knowledge
2. Prepare financial statements in accordance with nationally and internationally accepted financial reporting standards for organizations and groups of organizations. Perform simple and complex audits, apply essential finance concept, prepare tax returns and advise on tax matters in compliance with regulation and standards.
Practical Skills
3. Provide services to the community based on learned knowledge, and cooperate with different stakeholders for the benefit of the society (ummah).
Social skills and Responsibilities
4. Behave in accordance with professional ethics and Islamic values.
Value, Attitudes and Professionalism
5. Communicate effectively with various stakeholders, whether verbally or in written form. Communication
6. Process and evaluate financial data and non-financial information, as well as suggest solutions to accounting issues taking into consideration professional ethics and Islamic values.
Problem Solving and Scientific Skills
7. Use, evaluate and manage information technologies and systems for the efficient attainment of organizational objectives; and demonstrate an ability to learn continuously and develop professionally in tandem with the changes in the business world.
Information Management and Lifelong Learning
Skills
8. Analyze financial and non-financial information to make optimal managerial decisions, which are ethical, at the operational, tactical and strategic levels.
Managerial and Entrepreneurial Skills
9. Work collaboratively in a management team as well as demonstrate leadership qualities.
Leadership and Team Skills