Intermediate Management Accounting
Managers are faced with a wide range of decisions under resource constraints involving varying time frames in an uncertain environment. Managers have to decide on the price of a product, determine the optimum production plan under resource constraints, make operational and strategic investment decisions and advise on the acceptance or otherwise of a project. Businesses today operate within a competitive environment. Downward pressure on prices coupled with the need to deliver quality means that effective cost management and value creation is no longer an option. Effective performance management is undoubtedly critical to the achievement of the objectives of the organisation. This module will equip you with the relevant tools and techniques to deal with these issues.
The tools and techniques taught in this module are applicable worldwide due to their universal nature.
This module also offers students an online forum where students may initiate discussions with peers and the module convenor. Students will also have access to recordings of the lectures.
The sustainable development theme will be embedded within the numerous decision-making scenarios throughout the module. Students will be encouraged to adopt a sustainable development mindset.
All the resources for this module are available on the ELE (Exeter Learning Environment).
Students are encouraged to participate in global business competitions.
This module is accredited by professional accounting bodies.
Students will acquire transferable skills valued by prospective employers such as numerical, decision-making, analytical, communication, presentation and teamwork skills.
Students will also have the opportunity to meet sponsors and representatives from various companies should they participate in business competitions.
Full module specification
|Module title:||Intermediate Management Accounting|
BEA1009 Introduction to Management Accounting
Cannot be taken with BEA2010 Managerial Accounting
|Duration of module:||
Duration (weeks) - term 2: |
This module aims to provide students with an in-depth appreciation of the various decision-making techniques that are applicable to a wide range of short-term and long-term decisions faced by organisations, contemporary cost management philosophies and performance management. The aim is not to just cover the techniques but to appreciate the context of its application and barriers that may hinder its success. Practical examples and current issues will be used to illustrate the relevance of that which is being taught to the phenomena emanating from the current business environment.
ILO: Module-specific skills
- 1. apply the principles of relevant costing and determine cost and revenue that are relevant for the decision under consideration;
- 2. discuss the relevance of relevant costing;
- 3. apply, explain and evaluate the various techniques used for short and long-term decisions;
- 4. apply linear programming to problems that involve multi-limiting factors and interpret the results to determine the optimal solution;
- 5. apply and explain the various decision-making techniques under conditions of risk and uncertainty and determine the appropriate technique to apply based on the risk attitude of the risk-taker;
- 6. determine the value of information;
- 7. determine the difference between operational and strategic investment decisions;
- 8. apply strategic investment appraisal to strategic investment decisions;
- 9. evaluate the tools that can be used to support strategic investment appraisal;
- 10. explain, evaluate and apply the various pricing methods and techniques, and justify the use of different pricing methods to ensure alignment with corporate strategy;
- 11. discuss and evaluate the various contemporary cost management philosophies, tools and techniques, such as value chain analysis, activity-based management, life cycle costing, target costing, kaizen costing, business process re-engineering, process and enterprise maturity model, benchmarking, full-cost accounting/environmental accounting, sustainability assessment model, integrated reporting, total quality management, just-in-time, theory of constraints and throughput accounting; and the context of its application;
- 12. explain and evaluate the various budgetary control systems including incremental budgeting, zero-based budgeting, rolling budgets, activity-based budgeting, fixed and flexible budgets, and the concepts of Beyond Budgeting;
- 13. discuss the behavioural aspects of budgeting;
- 14. compute, apply, explain and interpret standard costing, and basic and advanced cost and sales variances; including the separation of planning and operational variances.
ILO: Discipline-specific skills
- 15. apply the decision-making tools and techniques to aid business decisions and recommend courses of action;
- 16. apply and determine the use of appropriate contemporary cost management tools and techniques to enable businesses to develop a competitive advantage over competitors;
- 17. effectively manage the performance of a business.
ILO: Personal and key skills
- 18. demonstrate written communication skills;
- 19. demonstrate problem solving skills;
- 20. demonstrate an ability to undertake independent learning and effective time management.
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|
|Scheduled Learning & Teaching activities||10||Whole cohort sessions|
|Scheduled Learning and Teaching Activities||9||Tutorials|
|Guided Independent Study||131||Asynchronous material on ELE, reading, research and preparation for tutorials and assessments|
|Form of assessment||Size of the assessment (eg length / duration)||ILOs assessed||Feedback method|
|Weekly tutorial problems for discussion||Four to five hours a week (inclusive of preparation time)||1-20||Tutor comments and suggested solutions|
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|
|Written Group Assignment||20||3,000 Words||1-20||Mark awarded and written feedback|
|Written examination||80||2 hours 15 minutes||1-20||Mark awarded and suggested Solution on ELE|
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|
|Written Group Assignment (20%)||3,000 words written individual assignment (20%)||1-20||August Examination Period|
|Written examination (80%)||2 hours 15 minutes written examination (80%)||1-20||August Examination Period|
Where you have been referred/deferred for an assessment, you will have the opportunity to undertake the assessment during the August examination period. You will not be allowed to refer an assessment component if the total of both assessment components result in you passing the module (i.e. at least 40%). In the event of referral, you will only be reassessed on the component that you failed.
• Relevant costing and its relevance
• Limiting factor analysis and linear programming
• Decision-making under conditions of risk and uncertainty
• Capital investment decisions
• Pricing decisions
• Cost management 1
• Cost management 2
• Cost management 3
Budgetary control system
• Budgetary systems and behavioural aspects of budgeting
• Standard costing and variance analysis
Indicative learning resources - Basic reading
Burns, J., Quinn, M., Warren, L. & Oliveira, J. (2013), Management accounting, McGraw-Hill Education
Drury, C. (2018), Management and cost accounting, 10th edition, Cengage
Module has an active ELE page?
Indicative learning resources - Web based and electronic resources
ELE – http://vle.exeter.ac.uk/course/view.php?id=2749
Lecture notes, tutorial questions and solutions, and relevant articles
Last revision date