Short Title:Management Accounting 4
Full Title:Management Accounting 4
Module Code:MACC H3006
Credits: 5
NFQ Level:7
Field of Study:Accounting and taxation
Module Delivered in no programmes
Module Author:MARTIN NOLAN
Module Description:The aim of this module is to further develop skills relevant to management accounting and build on those skills already developed in previous modules. It aims to assess those skills in a practical way as well as ensuring that students have knowledge of current developments and thinking relevant to this module.
Learning Outcomes
On successful completion of this module the learner will be able to:
LO1 Distinguish between different budgeting techniques and show an understanding of the suitability of such techniques in different business environments.
LO2 Demonstrate an understanding of the purpose of standard costing together with an ability to calculate variances including more complex mix and yield variances. They should also be able to establish the causes of variances and identify appropriate remedial action where adverse variances have arisen.
LO3 Discuss the impact of management control systems within an organization and assess the controllability principle and how this will affect those systems.
LO4 Identify costs relevant to the decision making process and apply those to a range of scenarios
LO5 Analyse and appraise the effects of risk and uncertainty in the decision making process.
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) %
Information for Decision-Making: Measuring Relevant Costs and Revenues for Decision Making: (35%)
The meaning of relevance Qualitative factors Product mix decisions when capacity constraints exist (limiting factor analysis) Replacement of equipment – the relevance of past costs Outsourcing, make or buy, further processing decisions Discontinuation decisions Use of relevant costing in minimum pricing decisions
Pricing Decisions
Pricing strategies, price skimming, penetration pricing and price discrimination The evaluation of pricing decisions such as price/demand relationships, relevant costs, product life cycles, target costing, transfer pricing and profit maximisation Pricing methods: full cost-plus, demand, minimum, tender and variable cost-plus Qualitative decisions in pricing
Risk and Uncertainty
Probabilities Measuring uncertainty Maximin, maximax and regret criteria Structure and use of decision trees
Information for Planning, Control and Performance Measurement: (15%) The Budgeting Process
Different types of budgets including master, product and cash The strengths and weaknesses of budgeting control The behavioural aspects of budgeting The use of forecasting techniques in the budgetary planning process The different methods of budgeting employed including fixed, flexible, zero-based, incremental, continuous including quantitative techniques such as regression scatter diagrams with correlation and forecasting Use of learning curve theory in budgetary planning and control Current trends in budgeting such as Activity Based Budgeting, Zero Based Budgeting and Rolling Budgets Beyond budgeting techniques and criticisms of abandoning budgets
Management Control Systems: (10%)
The controllability principle Identify controllable and uncontrollable elements Harmful side effects of control Ideas behind feedback and feedforward controls Responsibility accounting and four types of responsibility centres: cost, revenue, profit and investment The use of flexible budgeting, variance analysis, benchmarking and subjective evaluations to remove uncontrollable elements
Standard Costing and Variance Analysis: (40%)
The use of standard costing and variance analysis including sales and cost variances, mix and yield, planned and operational, fixed overhead capacity and volume Preparation of statements to reconcile budget and actual profit Controllability and uncertainty of variances The relative strengths and weaknesses of standard costing Preparation of standard costing and variance analysis under Absorption and Marginal costing systems Interpretation of variances Behavioural implications of setting standard costs The relevance of standard costing in today’s business environment and its future role
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 Continuous assessment will be in the form of an in class time constrained closed book assessment   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   70.00 End-of-Semester

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


Module Workload

This module has no Full Time workload.
This module has no Part Time workload.

Module Resources

Required Book Resources
  • Drury, Colin, Management and Cost Accounting, Latest Ed.
Recommended Book Resources
  • Lucey, T, Management Accounting, Latest Ed., DP Publications
  • Horngren C.T, Cost Accounting :A Managerial Emphasis,, Latest Ed., Prentice Hall
  • Harper, W.M, Management Accounting, Latest Ed., Pitman
Required Article/Paper Resources
  • Relevant articles from Accounting and Financial journals n/a
  • Accountancy (UK) Journal ICAEW n/a
  • Accountancy Ireland Journal ICAI n/a
  • Accountancy Age Journal 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
Other Resources
  • ICAI n/a
  • ICAI: IFRS n/a
  • ICAEW n/a
  • ACCA n/a
  • CIMA n/a
  • ICPAI n/a
  • ASB n/a
  • IASB n/a
  • IASPLUS n/a