INTRODUCTION TO MANAGEMENT ACCOUNTING (ACCT 121)

OVERVIEW

1. COURSE DESCRIPTION
This course teaches basic costing principles, techniques, and tools to support management in planning, controlling, and decision-making. It also introduces spreadsheets as an essential tool in supporting cost and management accounting. In this course, assessments include a role play in which students will play a role as a trainee accountant in the simulated business environment to support management in making an informed decision on the projects using a new job costing system. 

2. REASON FOR THE COURSE
Accountants must be able to collect, classify, and analyze the cost information to support management in planning, controlling, and decision-making. Therefore, program graduates will play an essential role in organizations to provide management with information to make informed decisions in order to improve the business’s profitability.

3. STUDY HOURS

4. ROLE IN CURRICULUM

Prerequisites:
There is no prerequisite for this course.

SKILLS

  • LEARNING OUTCOMES
  • ASSESSMENT AND GRADING
  • TEACHING METHODS
  • STUDY PLAN
  • TEXTBOOKS AND REFERENCES

5. COURSE LEARNING OUTCOMES (CLO)

On successful completion of this course, students will be able to:

Knowledge Level of
Learning		 Related PLO
Explain the management accounting (CK1)
Explain the nature and purpose of management accounting
 Understand PC4
Cognitive Skills Level of
Learning		 Related PLO
Classify costs (CC1)
Classify costs by nature, behavior, and purpose
 Apply PC4
Account for material, labor, and expenses (CC2)
Record costs for material, labor, and expenses
 Create PC4
Communication, Information Technology, and Numerical Skills Level of
Learning		 Related PLO
Calculate the unit costs (CCIT1)
Calculate the unit costs of a product or service of a simulated business using the spreadsheets
 Apply PCIT1
Interpersonal Skills and Responsibilities Level of
Learning		 Related PLO
Work in a team (CIP1)
Work in a team to suggest a new job costing system to improve the business’s profitability		 Characterize PIP1

6. ASSESSMENT AND GRADING

  Grades will be determined based on the following assessments and score allocations:

SKILL Assessment Skill Weighting for Grade
Participation Project Controlled Case Studies Final Controlled Case Study
Explain the management accounting (CK1)      100%    10%
Classify costs (CC1)     70% 30% 20%
Account for material, labor, and expenses (CC2)     50% 50% 20%
Calculate the unit costs (CCIT1)   100%     40%
Work in a team (CIP1) 100%       10%

 

7. TEACHING METHODS

This course uses demonstration, lecture, case studies, and group problem-solving.  Approximately 1/2 of the class time will be demonstrations, presentations, and questioning (often using Kahoot!) from the lecturer, with the other 1/2 of the class working on case studies and problem sets.  Case studies and problem sets are delivered via Google Classroom Quiz and Google Sheets.

During the course, there is one Project:

Assignment:

The Job Costing Decision
Work Group:

Groups of five
Output Format

Spreadsheet 
Language: English
Description:

Students play the role of a trainee accountant undertaking an assignment for business managers to suggest a new job costing system in order to improve the business’s profitability and ensure a return on investment.  Scoring will be according to the Assignment Rubric.

8. STUDY PLAN

The course targets the 30 lessons in the study plan below. Each lesson is 1.5 class hours; there are a total of 45 class hours.  The study plan below describes the skills to be learned in each lesson (learning outcome). Readings should be completed before the start of each class. Implementation of this study plan may vary depending on the progress and needs of students. References are supporting documents that students may optionally read for deeper understanding or clarification.

  Lesson Learning Outcomes Teaching (T), and
Assessment (A) Methods
 1

Introduction to Management Accounting Class

  1. Describe the course requirements
  2. Prepare a personalized study plan for the course

Discussion
Individual work

Reading: Course

Specification
2

Business Organisation & Accounting

  1. Describe the organization, and main functions, of an office as a center for information and administration (CK1)
  2. Identify the main types of transactions undertaken by a business and the key people involved in initiating, processing, and completing transactions. (CK1)

Lecture
Discussion
Kahoot

Reading: Chapter 1
3

Business Organisation & Accounting

  1. Describe and illustrate the use of ledgers and prime entry records in both integrated and interlocking accounting systems (CK1)

Lecture
Discussion
Kahoot

Reading: Chapter 1
4

Introduction to Management Information

  1. Explain the purpose of management information (CK1)
  2. Describe the features of useful management information (CK1)

Lecture
Discussion
Kahoot

Reading: Chapter 2
5

Introduction to Management Information

  1. Describe the sources and categories of information (CK1)
  2. Explain the limitations of cost and management accounting information (CK1)

Lecture
Discussion
Kahoot

Reading: Chapter 2
6

Cost units, cost classification, and profit reporting

  1. Describe the variety of cost classifications used for different purposes in a cost accounting system (CC1)
  2. Describe the nature of variable, fixed, stepped fixed, and mixed costs (CC1)

Lecture
Discussion
Kahoot

Reading: Chapter 3
7

Cost units, cost classification, and profit reporting

  1. Illustrate the classification of material and labor costs (CC1)
  2. Explain the nature and purpose of profit statements in absorption and marginal costing formats (CC1)

Lecture
Discussion
Controlled Case Study

Reading: Chapter 3
8

Cost units, cost classification, and profit reporting

  1. Calculate the cost and profit of a product or service (CC1)
  2. Illustrate the concept of cost units (CC1

Lecture
Discussion
Case Study

Reading: Chapter 3
9

Management Responsibility & Performance Measurement

  1. Explain the concept of cost, profit, and investment centres (CC1)

Lecture
Discussion
Kahoot

Reading: Chapter 4
10

Management Responsibility & Performance Measurement

  1. Apply performance measures appropriate to cost, profit, and investment centres (CC1)

Lecture
Discussion
Case Study

Reading: Chapter 4
11

Source Documents & Coding System

  1. Describe the documents necessary to order, receive, store, and issue materials (CC1)
  2. Describe the procedures and documentation to ensure the correct authorization, analysis, and recording of material costs, labor and expenses, and sales. (CC1)

Lecture
Discussion
Kahoot

Reading: Chapter 5
12

Source Documents & Coding System

  1. Explain and illustrate the use of codes in categorizing and processing transactions (CC1)
  2. Identify and correct errors in the coding of revenue and expenses (CC1)

Lecture
Discussion
Kahoot

Reading: Chapter 5
13

Accounting for Materials

  1. Apply FIFO, LIFO, periodic and cumulative weighted average methods of pricing material issues (CC2)

Lecture
Discussion
Practice

Reading: Chapter 6
14

Accounting for Materials

  1. Apply FIFO, LIFO, periodic and cumulative weighted average methods of pricing material issues (CC2)

ecture
Discussion
Practice

Reading: Chapter 6
15

Accounting for Labour

  1. Illustrate the accounting for labor costs (CC2)

Lecture
Discussion
Case Study

Reading: Chapter 6
16

Accounting for Labour

  1. Illustrate the labour remuneration methods (CC2)

Lecture
Discussion
Kahoot

Reading: Chapter 6
17

Accounting for Labour

  1. Calculate the effect of changes in remuneration methods and changes in productivity on unit labour costs (CC2)

Lecture
Discussion
Kahoot

Reading: Chapter 6
18

Overhead costs

  1. Explain the process of charging indirect costs to cost centres and cost units (CC2)

Lecture
Discussion
Kahoot

Reading: Chapter 7
19

Overhead costs

  1. Illustrate the process of cost apportionment for indirect costs (excluding reciprocal service) (CC2)

Lecture
Discussion
Kahoot

Reading: Chapter 7
20

Overhead costs

  1. Illustrate the process of cost absorption for indirect costs including the analysis and interpretation of over/under-absorption (CC2)

Lecture
Discussion
Kahoot

Reading: Chapter 7
21

Job, Batch and Process Costing

  1. Describe the characteristics of job costing (CCIT1)
  2. Calculate unit costs using job costing (CCIT1)

Lecture
Discussion
Controlled Case Study

Reading: Chapter 8
22

Job, Batch, and Process Costing

  1. Describe the characteristics of batch costing (CCIT1)
  2. Calculate unit costs using batch costing (CCIT1)

Lecture
Discussion
Controlled Case Study

Reading: Chapter 8
23

Job, Batch, and Process Costing

  1. Describe the characteristics of process costing (CCIT1)
  2. Calculate unit costs using a process costing (CCIT1)

Lecture
Discussion

Controlled Case Study

Reading: Chapter 8
24

The Basics of Using Spreadsheets

  1. Explain the role of spreadsheets in management accounting (CCIT1)
  2. Describe methods to use the spreadsheet features (CCIT1)

Lecture
Discussion
Spreadsheet

Reading: Chapter 9
25

The Basics of Using Spreadsheets

  1. Explain the causes of common error messages and how errors are corrected (CCIT1)
  2. Illustrate the use of adding comments to a cell (CCIT1)

Lecture
Discussion
Spreadsheet

Reading: Chapter 9
26

Using Spreadsheets to Present Information

  1. Describe appropriate formatting features for the display of numbers, text, cell borders, and patterns (CCIT1)
  2. Describe how charts can be created (CCIT1)

Lecture
Discussion
Spreadsheet

Reading: Chapter 10
27

Using Spreadsheets to Present Information

  1. Describe how to select the output to be printed (CCIT1)
  2. Identify and use formulae in a workbook containing multiple worksheets and link cells from different workbooks (CCIT1)

Lecture
Discussion
Spreadsheet

Reading: Chapter 10
28 Exam Questions Review All Chapters
29 Exam Questions Review All Chapters
30 Exam Questions Review All Chapters

9. TEXTBOOKS AND REFERENCES

Textbooks

  1.  Kaplan Publishing (2023). Study Text MA1 Management Information. Kaplan Publishing UK
  2.  Kaplan Publishing (2023). Exam Kit MA1 Management Information. Kaplan Publishing UK

References

  1. BPP Learning Media (2023). Interactive Text MA1 Management Information. BPP Learning Media Ltd.
  2. BPP Learning Media (2023). Practice & Revision Kit MA1 Management Information. BPP Learning Media Ltd.

Education Resources