This module introduces management accounting concepts and techniques such as traditional and activity-based costing, transfer pricing, flexible and activity-based budgeting as well as simple and multiple regression analysis in the context of cost estimation. In addition, it discusses employee motivation, performance evaluation and compensation systems. Further, it evaluates the behavioural impacts of various management accounting techniques and systems as well as their implications for control system design. Students will acquire a clear understanding of how to use and apply the techniques of managerial accounting as well as their behavioural implications.
This module takes an international perspective and considers the effectiveness of management accounting methods in different countries.
You will acquire knowledge and understanding of managerial accounting that concern practitioners and researchers and which have practical relevance in the workplace (careers in management accounting, internal control, management control and consultancy). In addition, you will have the opportunity to develop analytical, problem-solving, and argument-building skills during the tutorial classes and in writing-up reports, skills which are essential in the workplace.
Sustainability is built into the curriculum. In addition, most of the resources for this course are available on the ELE (Exeter Learning Environment).
Full module specification
|Module title:||Managerial Accounting|
BEA1013 Introduction to Accounting (formerly BEA1006 Accounting 1)
Cannot be taken with BEA2017 Intermediate Management Accounting
|Duration of module:||
Duration (weeks) - term 1: |
The aim of this module is to introduce students to the management accounting concepts and techniques that are used in contemporary businesses. In particular, the course will discuss the manner in which managerial accounting information is used by contemporary businesses and how such information aids the design and operation of management control systems. After discussing the changes that took place in the business environment, this module discusses employee motivation, performance evaluation and measurement systems, compensation systems, costing systems, budgeting, transfer pricing as well as their behavioural implications. You will acquire both a clear understanding of different management accounting and control systems and will be capable of designing systems appropriate to particular contexts.
ILO: Module-specific skills
- 1. develop cost and management accounting problem-solving skills
- 2. identify and evaluate alternative management accounting systems
- 3. synthesize information from various management accounting methods
- 4. explain and evaluate the impact of alternative budgeting approaches
ILO: Discipline-specific skills
- 5. explain the interaction between financial accounting and managerial accounting
- 6. identify and discuss the consequences of operating a particular management accounting system
ILO: Personal and key skills
- 7. work effectively independently as well as part of a group
- 8. develop problem-solving, analytical and argument-building skills
Learning activities and teaching methods (given in hours of study time)
|Scheduled Learning and Teaching Activities||Guided independent study||Placement / study abroad|
Details of learning activities and teaching methods
|Category||Hours of study time||Description|
|Lectures||26||Lectures will be delivered by the lecturer|
|Seminars||6||Students will be expected to work on the exercises and problems at home. They will then be expected to discuss these in groups during the seminar classes and to actively participate in solving problems and discussing questions in class.|
|Form of assessment||Size of the assessment (eg length / duration)||ILOs assessed||Feedback method|
|Participation in seminar classes (relevant to students not required to present a specific session)||6 hours||1-8||Discussion during the seminar class. Indicative solutions will be uploaded on ELE.|
Summative assessment (% of credit)
|Coursework||Written exams||Practical exams|
Details of summative assessment
|Form of assessment||% of credit||Size of the assessment (eg length / duration)||ILOs assessed||Feedback method|
|Report||30||Students will be assigned to groups. Each group will have to submit a report (up to 2,000 words long) addressing the questions assigned.||1-8||Written feedback will be provided to each group within three weeks.|
|Written exam||70||2 hours||1-8||Written feedback|
Details of re-assessment (where required by referral or deferral)
|Original form of assessment||Form of re-assessment||ILOs re-assessed||Timescale for re-assessment|
|Report and Written exam||Written Exam 2 hours (100%)||1-8||August|
Introduction to managerial accounting and control
• Performance evaluation and measurement systems
• Costing systems: Traditional and Activity-based costing
• Strategic management systems and the balanced scorecard
• Cost behaviour and estimation
• Employee motivation, incentives and compensation systems
• Flexible budgeting and activity-based budgeting
• Quality and costs of quality
• Transfer pricing
• Allocating support service costs
• Review of the course
Indicative learning resources - Basic reading
• Hilton and Platt (2015). Managerial Accounting, 10th edition, McGraw-Hill.
• Burns, Quinn, Warren, and Oliveira (2013). Management Accounting, McGraw-Hill.
• Horngren, C., A. Bhimani, S. Datar and G. Foster (2008). Management and Cost Accounting, Prentice-Hall.
• Anthony, Govindarajan, Hartmann, Kraus and Nilsson (2014). Management Control Systems, McGraw-Hilll.
• Zimmerman (2013). Accounting for Decision-making and Control, McGraw-Hill.
Module has an active ELE page?
Indicative learning resources - Web based and electronic resources
Web based and electronic resources:
- Chartered Institute of Management Accountants (CIMA), www.cimaglobal.com (e.g., material under ‘Innovation’).
- Institute of Management Accountants (IMA), www.imanet.org (e.g., material under ‘Resources and publications’).
- Institute of Chartered Accountants in England and Wales (ICAEW), www.icaew.co.uk (e.g., material under ‘Technical resources > Business and financial management’).
- http://www.mckinsey.com (e.g., material under ‘Insights and publications’).
Indicative learning resources - Other resources
Additional material will be provided by the course convenor to supplement the textbook when appropriate.
The course outline and other useful information are also available on the ELE coursepage. Lecture slides will be made available before the lecture for downloading. Answers to the seminar questions will be available on ELE after the seminar take place.
Last revision date