BMM4442 - Management and Financial Accounting

Objectives:

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

1 classify and explain the concept of cost objects, direct costs and indirect costs and produce material & labour costings for a simple business;
2 prepare cost statements for allocation and apportionment of overheads, including reapportionment between service areas. evaluate the absorption base and calculate under/over absorption;
3 prepare marginal costing statements and produce and interpret the break-even charts;
4 show an understanding of financial accounting, regulatory bodies, reporting standards and corporate governance.
5 prepare Income statements and statement of financial position, and cash flow 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 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.

Lecture
Contact hours: 20
Intended Group size: 30

Tutorial
Contact hours: 20
Intended Group size: 10

Guided independent study
Hours: 160

Assessment: