Course Details

Course Information Package

Course Unit CodeABSA206
Course Unit Details
Number of ECTS credits allocated5
Learning Outcomes of the course unitBy the end of the course, the students should be able to:
  1. Evaluate the concept of the economic order quantity and its relevance to stock control.
  2. Explain the theoretical background to break even analysis and apply it to decision-making.
  3. Construct profit statements using different cost accounting systems and be in a position to interpret the results.
  4. Prepare budgets (such as cash budgets) and be in a position to interpret the results.
  5. Apply the techniques used in variance analysis to solve mini-case studies.
Mode of DeliveryFace-to-face
Recommended optional program componentsNONE
Course Contents

Stock control: Evaluate the concept of the economic order quantity and its relevance to stock control. Applying costing techniques to assist in making decisions on stock management.

Marginal and Absorption costing: Preparing profit statements using the marginal costing and absorption costing systems. Be in a position to interpret the results and to understand the differences between the two costing systems.

Break even analysis: An introduction to break-even analysis (cost volume profit analysis).  Calculating the break-even point either graphically or by formula. Be able to construct a profit-volume chart and understanding the differences with that of the break-even chart. Be able to solve problems when variables concerning costs or revenues change.

Standard costing and variance analysis: An introduction to standard costing and its relevance to controlling performance. Applying variance analysis to mini case studies and is in a position to interpret the results.

Budgeting and Budgetary Control: Understand the theoretical concepts concerning budgets including the relationship of behaviour to budgets. Be able to prepare cash budgets and master budgets and understanding the results. The preparation of other budgets such as sales and production.

Costs for Decision-Making: Applying Marginal Costing techniques used in short –term decision making such as make or buy, accept or reject and limiting factor decisions.

Recommended and/or required reading:
  • Drury, C, Management and Cost Accounting, 7th Edition (or latest edition), Thomson Press 2008.
  • F Wood and A Sangster, Business Accounting 2, 11th Edition, Financial Times Prentice Hall, 2008.
  • Pauline Weetman, Financial & Management Accounting: An introduction, 4th Edition, FT Prentice Hall, 2006.
  • Kaplan Publishing, ACCA Paper F5 Performance Management, December 2009 &June 2010 Edition (or latest edition), Kaplan Publishing.
Planned learning activities and teaching methods

The taught part of course is delivered to the students by means of lectures, conducted with the help of computer presentations. Lecture notes and presentations are available through the web for students to use in combination with the textbooks. Lectures are supplemented with class exercises carried out in class and via homework.

Assessment methods and criteria
Final Exam60%
Language of instructionEnglish
Work placement(s)NO

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