BMM4442 - Financial and Management Accounting

Objectives:

On successful completion of the module, students will be able to:
Explain the nature, source and process of financial information in management and financial accounting.
Demonstrate understanding of the purpose and types of businesses, business organisation structure, auditing, regulatory bodies, reporting standards, as well as corporate governance, leadership ethics, and professional values.
Identify and apply measures of financial performance for decision making in the financial statements, income statements, statements of financial position and cashflow statements for limited and quoted companies.
Explain different costing methods and apply basic cost accounting techniques.
Compare actual costs with standards cost and analyse any variances.
Recognise the importance of budgets for planning and control.

Content:

This module will introduce with the two general branches in accounting, financial and management accounting. The module will consider the the purpse and type of information each branch of accounting produces. Students will learn the the purpose and types of business organizations, the role of stakeholders and different regulatory and non-regulatory factors that affect businesses. The students will recognise the use of the main financial statements and will be able to apply and interprete profitability measures including profitability, liquidity and activity ratios. Lecturers will explain the different costing methods (marginal costing, absorption costing and ABC) and the students will clasify and explain concepts of cost objects,cost units, cost centres, direct costs and indirect costs, material and 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. The students will also apply cost behaviour analysis (also graphically), marginal cost and single product break-even analysis. The students will also recognise the nature and purpose of budgeting, the process of budgeting preparation, department budgets and master budget, the difference between flexible and fixed budgets and the behavioural aspects of budgeting.

Learning and Teaching Information:

The module will be delivered via a series of weekly 3-hour teaching blocks, comprising whole-group interactive lecture and seminar covering fundamental theories and applications. Lectures and seminars will be supported by in-depth applied workshops.

Students will be provided with, and/or directed to, relevant reading for independent learning in advance on the VLE and in the module handbook. The module will use book exercises, case studies and scholarly papers according to the topic and learning objective.

Lectures/Seminars
Contact hours: 30
Intended Group size: Cohort

Workshops/Tutorials
Contact hours: 10
Intended group size: Cohort or variable size groups

Guided independent study
Hours: 160

Further details relating to assessment
Written examination: the exam will consist of three unseen case studies. The first case study will aim at testing the student knowledge and understanding of financial accounting. It includes calculation of net profit and key financial ratios as well as the interpretation of such ratios in order to interpret the financial position of a company. The second case study will evaluate management accounting with reference to the use and application of contribution analysis and costing techniques such as absorption and activity based costing. The third case study will assess the students' understanding of budgeting and variance analysis.

Directed activities: these consist of weekly tasks that must be completed and submitted for inspection at timetabled sessions each week. The directed activity will be on a pass/ fail basis with a pass requiring 5 out of 7 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.

Assessment:

Fact File

Module Coordinator - Andrew Gilliland
Level - 4
Credit Value - 20
Pre-Requisites - NONE
Semester(s) Offered - 4S1

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