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Managerial
Accounting
Aims
- Understand
the costing methods and techniques available.
- Select
appropriate methods and techniques which an organisation can use to calculate
costs under different situations.
- Construct
budgets for both planning and control purposes, including cash flow forecasts.
- Understand
all aspects of working capital management.
- Appreciate
how information technology can assist when preparing information for management.
- Understand
Capital Investment Appraisal and Financial Mathematics.
Program Content
and Learning Objectives:
After
completing the programme students should be able to:
1. Understand
the control systems required for materials, labour and overheads
- the nature
of costs
- ecognise the
differences between fixed, variable, semi fixed and semi variable costs
- problems of
allocation/apportionment of overheads pricing of materials calculation of
overhead recovery rates
2. Analyse data
according to various cost classifications and the effect of volume on costs
- cost volume
profit analysis
- comparison
between the economist’s and the accountant’ss cost volume chart
3. Recognise
how cost systems differ by activity i.e job and process costing
- characteristics
of process costing, equivalent units, methods of pricing
- normal and
abnormal waste, joint and by products
- methods of
apportionment of joint costs
4. Use of costs
for short-term decision making
- marginal
costing, key factors, opportunity costs, sunk costs, differential costs, qualitative
aspects
5. Appreciate
the difference between marginal and absorption costing
- format of a
marginal profit statement, format of an absorption profit statement
6. Recognise
the purpose of budgetary control
- construct
budgets for both planning and control purposes. administration of budgets, roll
over budgets, objectives of budgets, the budget key factor, functional budgets,
master budgets, behavioural aspects of budgetary control
- zero based
budgets
7. Explain the
purpose of standard costing, calculate and analyse variances for materials,
labour,
- overheads
and sales, types of standards, preparation of operating statements
8. Explain the
purpose of working capital management
- operating
cycle, funding and control of working capital
9. Understand
the uses of information technology when presenting management with information.
10. Capital
Investment Appraisal and Financial Mathematics
- financial
and non-financial factors to be considered when making investment decisions
- methods of
investment appraisal including pay back. the time value of money and average
rate of return
- the
calculation of compound interest
- annuities
and mortgages
- discounted
cash flow
- net present
value
- internal
rate of return.
Method of
Assessment:
By written
examination. The pass mark is 40%. Time allowed 3 hours
The question
paper will contain:
Six questions
of which four must be answered. Five questions will he computational with
written parts in the majority of these questions and one will be an essay
question.
All questions
carry 25 marks.
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