Programme of Study Catalogue

Objectives:

On successful completion of the module, students will be able to:
classify and explain the concept of cost objects, direct costs and indirect costs and produce material and labour costings for a simple business;
prepare cost statements for allocation and apportionment of overheads, including reapportionment between service areas, evaluate the absorption base and calculate under/over absorption;
prepare marginal costing statements and produce and interpret break-even charts;
show an understanding of financial accounting, regulatory bodies, reporting standards and corporate governance;
prepare income statements, statements of financial position and cashflow statements for limited and quoted companies.

Content:

Cost classification, material & labour pricing, stock valuation methods (FIFO, AVCO & LIFO). Total absorption costing, allocation, apportionment, reapportionment and absorption into single units. Absorption basis and under/over absorption. Cost behaviour, marginal costing, single product break-even analysis, limiting factor analysis. Full cost and marginal cost based pricing methods. Budget theory and preparation of functional, master budgets and flexible budgets.
Introduction to financial statements in accordance with International Financial Reporting Standards (IFRS) and corporate governance. Why corporate organisations fail.

Learning and Teaching Information:

The module will be delivered via a series of weekly three-hour whole-group interactive lectures, supported by small group tutorial.workshops 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.

Lectures
Contact hours: 20
Intended Group size: 30

Tutorials
Contact hours: 20
Intended group size: 10

Guided independent study
Hours: 160

Further details relating to assessment
Directed activities: These consist of weekly tasks that must be completed and submitted for inspection at timetabled sessions each week. The assessment will be on a pass/ fail basis with a pass requiring at least 75% of all weekly tasks successfully completed. A pass mark will lead to the full award of 10% towards the final mark. A fail in directed activities will contribute 0% to the final mark.

*Marginal condonement of failure is allowed for this module within the degree programme but no marginal condonement of failure is allowed in relation to ACCA exemptions.