Management Accounting
Code
1202
Academic unit
null
Department
null
Credits
7,5
Teacher in charge
Maria João Major, Rui Augusto, Alexandra Filipa Cardoso e Miguel Igreja
Teaching language
English
Objectives
This course aims to provide students with an understanding of the information that must be produced within the companies for the valuation of their inventory, for decision-making by their managers, and for the planning, control and performance measurement of their activities. Concern is given to the design, use and role of accounting information in the management of organizational activities.
Prerequisites
Subject matter
1.Introduction to Management Accounting
a.Scope and objectives of Management Accounting
b.Terms, concepts and classifications of costs
c.Cost concepts in manufacturing companies: cost of goods manufactured and cost of goods sold
d.Profit and loss account by function
2.Inventory Valuation and Profit Measurement
a.Cost assignment:
i.Single versus multiple overhead allocation rates
ii.Traditional costing systems
iii.ABC costing system
b.Job costing and process costing
3.Information for Decision-Making
a.Alternative cost accumulation systems
i.Description
ii.Advantages and disadvantages
b.Cost-volume-profit analysis
i.Objectives
ii.Break-even point
iii.Safety margin
iv.Product-mix
c.Relevant costs and revenues
i.Objectives
ii.Examples
4.Information for Planning and Control
a.Budgeting
i.The planning process
ii.Objectives and importance of budgeting
b.Standard costs and variance analysis
i.Objectives
ii.Calculation of variances
iii.Identification of the causes of variances and the corrective actions to implement
Bibliography
?Drury, C. (2015) Management and Cost Accounting, 9th Edition, South-Western / Cengage Learning (ISBN 978-1-4808-9393-1);
?Bhimani, A., Horngren, C.T., Datar, S.M. and Rajan, M. (2015) Management and Cost Accounting, 6th Edition, Pearson (ISBN 978-129-206-346-1);
?Garrison, R., Noreen, E. and Brewer, P. (2014) Managerial Accounting, 15th Edition, McGraw-Hill (ISBN 007-8-0256-3x).
Teaching method
The course comprises both lectures and tutorials. Lectures (one each week) consist of presentations about the theoretical aspects of each topic, as well as, applications to real-life situations. PowerPoint handouts will be provided to students covering all the topics. Tutorials (two each week) base on exercises and discussions with students in order they are able to develop the theoretical and practical knowledge about the concepts, the systems and practices of management accounting.
Evaluation method
Students? assessment bases on:
-Two mid-term tests each amounting to 20% of the final grade of the course:
-First mid-term test on April 20 (to be confirmed) on topics 1 to 3 of the program;
-Second mid-term test on May 18 (to be confirmed) on topics 3 to 4 of the program.
-Final exam covering all the 4 topics of the program (60% of the final grade of the course).
To pass students must get at least 8.5 over 20 in the final exam (there is no minimum grade set to the mid-term tests), and at least 10 over 20 as the final grade of the course.
Additionally, there is a resit exam, available to all students that fail in the regular exam or that want to improve their grade. The resit exam is worth 100% and covers all parts of the syllabus. To pass students must get at least 10 over 20 in the exam.