Management Accounting


This module extends the basics of management accounting in its role in shaping long term decisions, in planning and in control and presenting reports to management.


The aim of this module is to develop the students' ability to examine management accounting problems surrounding long term planning, control and decision making within the business unit.

Learning Outcomes

By the end of this module the student should be able to:

1.  apply quantitative expertise in the use of appropriate management accounting techniques and account for the strengths and weaknesses of these methods;

2.  explain the use of relevant management accounting theories and techniques in supporting business decisions;

3.  work effectively as a member of a group, in providing a cohesive group presentation in response to a given assignment.

Indicative Content

1 Further issues in Costing

Overhead allocation, apportionment and absorption; compilation of process costing statements and joint costing statements using FIFO and Weighted Average considering opening and closing stocks; throughput costing

2 Marginal Costing

Cost-volume profit analysis for multi-product. Absorption and Marginal costing compared.

3 Capital Investment Appraisal

Investment appraisal methods; Net Present Value, Payback, Internal Rate of Return and Accounting Rate of Return. Strengths and weaknesses of these methods. Sensitivity analysis applied to capital investment appraisal.

4 Working Capital

The nature and importance of working capital. Management of working capital. Determining working capital needs.

5 Variance Analysis

Calculation and interpretation of variances. Reconciliation of actual to planned performance by means of variances. Distinguish between planning and operational and operational variances. Role of MRP and ERP systems in supporting standard costing systems.Material mix and yield variances, sales mix and quantity variances.

Statement on Teaching, Learning and Assessment

Class contact takes the form of lectures and tutorials plus a 2 hour supervised practical lab activity. Tutorials will engage students in enquiry based activities developing their ability to undertake analytical problem solving and develop decision making skills for a minimum of 60% of contact time. Assessment takes the form of a group presentation, individual report and an end of semester exam.

Teaching and Learning Work Loads

Total 200
Lecture 14
Tutorial/Seminar 24
Supervised Practical Activity 2
Unsupervised Practical Activity 0
Assessment 40
Independent 120

Guidance notes

Credit Value – The total value of SCQF credits for the module. 20 credits are the equivalent of 10 ECTS credits. A full-time student should normally register for 60 SCQF credits per semester.


We make every effort to ensure that the information on our website is accurate but it is possible that some changes may occur prior to the academic year of entry. The modules listed in this catalogue are offered subject to availability during academic year 2019/10 , and may be subject to change for future years.