BAM5222 - Management Accounting 2

Objectives:

On successful completion of the module, students will be able to:

1 prepare multi-product cost-volume-profit-analyses, and evaluate the limitations of such analyses;
2 define and apply relevant costing concepts and principles to materials and labour for decision making purposes;
3 calculate and interpret material, labour, overhead and sales variances, including mix and yield variances;
4 evaluate divisional performance measurement techniques and the role of transfer pricing in performance measurement and decision making.

Content:

Multi-product cost-volume-profit (CVP) analysis, C/S ratio, target profit, margin of safety, average and minimum break-even points. Relevant costing of materials and labour for decision marking, incremental costs, opportunity costs, sunk costs, common costs. Make / buy and minimum price decision making. Standard costing, variance analysis of sales, materials, labour and overheads including mix & yield variances. Performance measurement methods, benchmarking, balanced scorecard and divisional performance measures, ROI, RI and the use of transfer pricing.

Learning and Teaching Information:

The module will be delivered via a series of weekly one-hour whole-group interactive lectures supported by weekly one-hour small group tutorial / workshop sessions. Questions / exercises will be set at each lecture meeting for students to complete before the associated small group session. Students will be provided with, and/or directed to, relevant reading and additional questions / exercises to support their progress through the module material. Additional workshop time will be provided for students needing extra practice with a computer spreadsheet.

Lecture / workshop session
Contact hours: 40
Number of Groups: 1 group of 30 students

Assessment:

001 portfolio of up to three tests and exercises (during Sem 1) 50%
002 Unseen Exam 1 x 2 hours (end sem 2) 50%


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