acc501 business accounting & finance

8/11/2019 ACC501 Business Accounting & Finance

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Unit title: Business Accounting & Finance

Unit code: ACC501

Unit description: This modulecombines both theoretical and conceptual issues with the

operational and practical activities of management accounting. It seeks

to address the integrative nature of accounting information systems andconsiders the multi-disciplinary aspects of management problems. This

subject aims to impart knowledge on the development and use of

management accounting as a support system for the managerial decisionmaking process. The study of relevant theory and practice will equip

students with analytical techniques and skill for using accounting

information for problem solving within a variety of organizationalcontexts.

Unit objectives: This unit is designed to enable students to

Knowledge

!. "nderstand the contemporary issues in management accounting.

#. $ppreciate the diversity of management accounting research andpractice.

%. &evelop and use management accounting as a support system for

the managerial decision process.

Sills

!. 'e able to undertake relevant research to explain management

accounting

#. 'e able to form and express opinions of the efficacy ofcontemporary management accounting theory and practice.

%. 'e equipped with analytical techniques to use accountinginformation for problem solving within a variety of organizational

contexts.

!alues"Attitudes

!. (ritically use management accounting systems) as part of the

planning and control process) to achieve stakeholders* goals.

#. +ecognize the role of management accountants as providers of

relevant value-enhancing information for internal managerial

decision-making.

%. $pply their understanding of fundamental management accounting

concepts towards specific management planning and control issues.

Unit outco#es: !. "nderstand and explain the relationship between organizational

activities) costs and value.

!


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#. $ppreciate the appropriateness of selecting from a variety ofmanagement accounting techniques to provide information for

effective control and decision-making.

%. ,xplore future development directions in management accounting.

$eadings: $eco##ended te%t

!. ongren) (.T.) undem) /.0. 1 tratton) 2.3. 4#55#6) Introductionto 7anagement $ccounting) !#thedn.) 8rentice all

Supple#entar readings

!. ongren) (.T.) arrison 1 'amber 4#55#6) $ccounting) 9th edn.)

8rentice all

#. /itman) 0.:. 4#55%6) 8rinciples of 7anagerial ;inance) !5th

edn.)$ddison 2esley

%. ;ess ) 2.;. 4#55#6) ;inancial 1 7anagerial $ccounting


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Unit contents: '()*CS

1+ An introduction to accounting sste#s

Identifying the objectives of accounting systems

&escribing cost accounting and its significance to management

&istinguishing between accounting and financial accounting

The business environment and the role of accounting

information

$eadings:

ongren) (.T.) undem) /.0. 1 tratton) (hapter !

,+ Financial planning and control wit- budgeting

The role of budgeting in managerial planning and control

+ole of accounting in the budgeting process

"nderstand the goal congruence and its importance to an

organization

&efining and interpretation of operating budgets within a master

budget.

$eadings

ongren) (.T.) undem) /.0. 1 tratton) (hapter


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$eadings:

ogett 1 ,dwards) (hapter #=

/+ ecision #aing and capital budgeting

(haracteristics of managerial decision making and steps in the

decision-making process

(alculating and evaluating special orders) make-or-buy decisions

$eadings:

ongren) (.T.) undem) /.0. 1 tratton) (hapter !!

ogett 1 ,dwards) (hapter #>

5+ '-e cost o capital 2)art 13

,xplain the sources of capital and how firms raise capital

,valuate the different sources of finance4including leases6

$eadings:



4+ '-e cost o capital 2)art ,3

,stimate the cost of capital for each financing source

,stimate the weighted average cost of capital

$eadings:



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+ Cost6volu#e6proit relations-ips 2)art 13

&istinguish between variable) fixed and mixed costs* behavior

,xplain the concept of contribution margin

$ssess the basic assumptions of cost-volume-profit analysis

,xplain break-even point and methods of determining it.

$eadings:

ongren) (.T.) undem) /.0. 1 tratton) (hapters #) =) 9 1 >

7+ Cost6volu#e6proit relations-ips 2)art ,3

$pplication of break-even analysis in determining targeted sales

and net profit

,xplain the impact of factors such as selling price) sales volume)

sales mix) variable and fixed costs on profits

$eadings:

ongren) (.T.) undem) /.0. 1 tratton) (hapters !#) !%) != 1 !9

8+ Analsis and interpretation o inancial state#ents 2)art 13

(hoice of different analytical techniques in assessing an entity*s

performance and financial position

Introducing horizontal) trend and vertical analytical frameworks

and interpreting the results.

$eadings:

ongren) (.T.) undem) /.0. 1 tratton) (hapters !>) !< 1 !?

10+ Analsis and interpretation o inancial state#ents 2)art ,3

(onducting a ratio analysis to assess an entity*s profitability)

liquidity and financial stability

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acc501 business accounting & finance

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