BMM6602 - Management and Financial Accounting

Objectives:

On successful completion of the module, students will be able to:
classify, explain and critically reflect on applications of the concept of cost objects, direct costs and indirect costs and produce material and labour costings for a simple business;
critically evaluate the absorption base and calculate under/over absorption; prepare cost statements for allocation and apportionment of overheads, including reapportionment between service areas;
prepare marginal costing statements and produce and interpret break-even charts;
show a critical 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 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. 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 3-hour whole-group interactive lectures, supported by 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.
Some of the lectures/workshops will be shared with Level 4 students but separate tutorials will be organised for Level 6 (BA Accounting Top Up) students to prepare them for an appropriate Level 6 examination.

Lectures
Contact hours: 20
Intended Group size: Whole cohort

Tutorials/workshops
Contact hours: 20
Intended Group size: Group 8-10

Guided independent study
Hours: 160

Further details relating to assessment
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.

Assessment: