Short Title:Management Accounting 2
Full Title:Management Accounting 2
Module Code:MACC H2005
 
Credits: 5
NFQ Level:6
Field of Study:Accounting and taxation
Module Delivered in 3 programme(s)
Reviewed By:MARTIN NOLAN
Module Author:Gail Sheppard
Module Description:This module requires a knowledge and comprehension of Management Accounting 1. The module aims to provide students with a comprehensive understanding of the management accounting systems and techniques employed by the Management Accountant. This knowledge provides the student with techniques relevant to problem solving in a work situation.
Learning Outcomes
On successful completion of this module the learner will be able to:
LO1 Describe and explain the basic theory underlying the techniques used by a Management Accountant to cost products and services using different costing systems.
LO2 Demonstrate the costing of products and services using marginal and absorption costing.
LO3 Identify and explain cost behaviour patterns used in cost volume profit analysis. Demonstrate the use of cost volume profit analysis techniques used in decision making.
LO4 Evaluate long-term investment opportunities through the use of investment appraisal techniques.
LO5 Describe and explain the theory behind budgeting and standard costing. Prepare and present budgets.
LO6 Compute, interpret and investigate variances using variance analysis.
Pre-requisite learning
Co-requisite Modules
No Co-requisite modules listed
 

Module Content & Assessment

Content (The percentage workload breakdown is inidcative and subject to change) %
Marginal costing and absorption costing
Theories behind marginal and absorption costing; compute profits using marginal and absorption costing; accounting treatment of fixed production overheads using marginal and absorption costing; accounting treatment of selling and distribution overheads and administration expenses; reconciliation of marginal and absorption profits and losses for a period; reasons for the use and problems of marginal and absorption costing.
20.00%
Cost volume profit analysis
Relationship between contribution and volume; CVP approach; breakeven analysis: target profit, C/S ratio, margin of safety and breakeven point; contribution and profit volume graphs; operating leverage; CVP in a sales mix; separation of semi-variable costs using high-low method; assumptions of CVP; use of marginal costing in decision making.
20.00%
Capital investment appraisal
Time value of money using compounding and discounting; evaluation of long-term investment opportunities through the use of: net present value, internal rate of return, accounting rate of retun and payback; benefits and drawbacks of investment appraisal techniques; apply sensitivity analysis to cash flows.
10.00%
The budgeting process
Budgetary control process; budgeting terminology; advantages and disadvantages of budgeting; stages in the budgetary process; preparation of functional budgets and the master budget; theory of incremental budgets; zero-based budgets and rolling budgets; the use of IT in relation to budgeting.
25.00%
Standard costing and variance analysis
Operation of a standard costing system; establishing cost standards in manufacturing and service industries; use of standards to minimise waste and maximise efficiency; type of cost standards; purposes of standard costing; variance analysis for sales and cost variances; reconciliation of budget and actual profits using variance analysis; the use of IT in relation to standard costing and variance analysis.
25.00%
Assessment Breakdown%
Course Work30.00%
End of Module Formal Examination70.00%
Course Work
Assessment Type Assessment Description Outcome addressed % of total Assessment Date
Continuous Assessment The continuous assessment will take the form of an individual assessment. This will be an in-class, time-constrained exam. 1,2,3 30.00 n/a
End of Module Formal Examination
Assessment Type Assessment Description Outcome addressed % of total Assessment Date
Formal Exam End-of-Semester Final Examination 1,2,3,4,5,6 70.00 End-of-Semester

IT Tallaght reserves the right to alter the nature and timings of assessment

 

Module Workload

Workload: Full Time
Workload Type Workload Description Hours Frequency Average Weekly Learner Workload
Lecture Class-based instruction 3.00 Every Week 3.00
Independent Learning Study and question practice 6.00 Every Week 6.00
Total Weekly Learner Workload 9.00
Total Weekly Contact Hours 3.00
Workload: Part Time
Workload Type Workload Description Hours Frequency Average Weekly Learner Workload
Lecture Class-based instruction 2.00 Every Week 2.00
Independent Learning Study and question practice 7.00 Every Week 7.00
Total Weekly Learner Workload 9.00
Total Weekly Contact Hours 2.00
 

Module Resources

Required Book Resources
  • Gail Sheppard 2011, Management Accounting A Practical Approach, Gill & Macmillan [ISBN: 9780717149964]
Recommended Book Resources
  • Drury C,, Cost Accounting and Management Accounting, An Introduction, 6th Ed., Thomson
  • Lucey T, Costing, 9th Ed., DP Publications
  • Horngren, Cost Accounting: A Managerial Emphasis, 12th Ed., Prentice-Hall
  • Owler & Brown, Wheldon’s Cost Accounting, 11th Ed., Pitman
  • Brown G, Cost and Management Accounting 1, 5th Ed., Longman
Recommended Article/Paper Resources
  • Accountancy UK Journal ICAEW n/a
  • Accountancy Ireland Journal ICAI n/a
  • Accountancy Age n/a
  • Accountancy Plus Journal ICPAI n/a
  • Business and Finance Journal n/a
  • Financial Times Newspaper n/a
  • Sunday Business Post Newspaper n/a
This module does not have any other resources
 

Module Delivered in

Programme Code Programme Semester Delivery
TA_BAACC_B Bachelor of Business (Honours) in Accounting & Finance 4 Mandatory
TA_BAACC_D Bachelor of Business in Accounting & Finance 4 Mandatory
TA_BACCT_C Higher Certificate in Business in Accounting 4 Mandatory