| CODE | ACC2971 | ||||||||
| TITLE | Costing Principles for Management Accounting Applications | ||||||||
| UM LEVEL | 02 - Years 2, 3 in Modular Undergraduate Course | ||||||||
| MQF LEVEL | 5 | ||||||||
| ECTS CREDITS | 8 | ||||||||
| DEPARTMENT | Accountancy | ||||||||
| DESCRIPTION | The study-unit will cover a number of topics which will serve as a foundation for the Management Accounting courses which the students will be offered later on in their studies. The study-unit will explore the nature of cost accounting and the fundamental cost terms and concepts necessary to understand cost behaviour and estimation (including cost classification for stock valuation/profit measurement and for decision-making). It will then deal with the accounting treatment of the various cost elements namely materials (including quantitative models for the planning and control of stocks), labour (including evaluation of incentive schemes) and overhead expenditure. Alternative cost accumulations methods (absorption costing, marginal costing and activity-based costing) will be evaluated. These will then be applied using different costing methods in the context of different operational setups (specific order costing,continuous operation/process costing, job and batch costing, contract costing, service costing, process costing, operation costing and joint product and by-product costing). The study-unit will then delve into incremental budgeting and budgetary control techniques. This will lead to a detailed analysis of standard costing and variance analysis techniques. Study-unit Aims: This study-unit aims to provide students with a thorough knowledge of the various cost accumulation techniques applicable to different cost elements and how these costs should be recorded in the accounting system. Different ways of arranging data will be considered so that cost statements may be prepared for specific purposes. The study-unit will also provide students with a thorough knowledge of budgeting,budgetary control, standard costing and variance analysis. Learning Outcomes: 1. Knowledge & Understanding: By the end of the study-unit the student will be able to: 1. Describe the role of cost accounting within organisations; 2. Classify the various patterns in which costs may behave; 3. Outline the characteristics of different types of costing methods; 4. Explain the impact of different cost accumulation systems on decision-making; 5. Identify the appropriate costing method that suits the method of manufacture or the way services are supplied; 6. Apply each type of costing method by carrying out relevant computations; 7. Describe the budgeting and standard costing processes; 8. Interpret cost and revenue variances. 2. Skills: By the end of the study-unit the student will be able to: 1. Measure the cost for the various elements of production; 2. Compile costs within accounting systems; 3. Quantify product costs using different cost accumulation systems; 4. Prepare different types of budgets; 5. Appraise cost and revenue variances and perform reconciliations between budgeted and actual results. Main Text/s and any supplementary readings: Drury, Colin: Cost and Management Accounting, Cengage, UK, latest edition. |
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| STUDY-UNIT TYPE | Lecture and Tutorial | ||||||||
| METHOD OF ASSESSMENT |
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| LECTURER/S | Matthew Buhagiar Lauren Ellul |
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The University makes every effort to ensure that the published Courses Plans, Programmes of Study and Study-Unit information are complete and up-to-date at the time of publication. The University reserves the right to make changes in case errors are detected after publication.
The availability of optional units may be subject to timetabling constraints. Units not attracting a sufficient number of registrations may be withdrawn without notice. It should be noted that all the information in the description above applies to study-units available during the academic year 2023/4. It may be subject to change in subsequent years. |
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