| CODE | TEB4003 | ||||||||
| TITLE | Cost and Management Accounting for Business Educators | ||||||||
| UM LEVEL | 04 - Years 4, 5 in Modular UG or PG Cert Course | ||||||||
| EQF/MQF LEVEL | 6 | ||||||||
| ECTS CREDITS | 4 | ||||||||
| DEPARTMENT | Technology and Entrepreneurship Education | ||||||||
| DESCRIPTION | This study-unit provides an introduction to the theory and practice of cost and management accounting. It complements the principles of financial accounting study-units for business educators. The study-unit emphasises the core principles and facilitates the understanding and evaluation of the 'why' and 'how' of cost and management accounting. It is intended for student teachers who have had limited exposure to this area of study. Students shall be given the opportunity to practise, apply, analyse, interpret and evaluate cost and management statements through problem solving situations, discussions and other techniques that encourage critical thinking. This integrated approach helps the student teacher to focus on the functions of management without neglecting the computation of numbers, since principles and practice cannot be taken in isolation. Study-Unit Aims: The study-unit will enable students to: - Develop an understanding of the core concepts and principles relating to cost and management accounting topics; - Demonstrate how cost ascertainment is the foundation of management accounting; - Appraise the importance of management accounting for planning, control and decision making; - Examine the short term decision making process by focusing on the relevant factors to a situation; - Advocate for business ethics and analyse the organisation's corporate social responsibility policies; - Contrast financial accounting and cost and management accounting, and assess the benefits of these two branches of accounting; and - Enhance the financial literacy attainment. Learning Outcomes: 1. Knowledge & Understanding: By the end of the study-unit the student will be able to: - Explain the main characteristics of the cost and management accounting function and its principal uses; - Distinguish between the main cost classification systems; - Differentiate between business firms that produce identical products and others that produce related products; - Apply the various inventory valuation methods for the pricing of inventory and unit cost; - Distinguish between time based and output based labour remuneration systems and and recommend their application; - Appraise that overhead costs are allocated and apportioned to different cost centres and are absorbed by the units of production; - Compose cost statements using specific order costing and continuous operation costing systems to derive the product cost; - Understand the behaviour of costs; - Explain the objective of cost-volume profit analysis and the notion of break-even; - Evaluate the relevance of marginal costing to decision making; - Explain and assess how budgeting relates to the managerial functions of planning and control; - Design a cash budget; and - Examine the role of managers in designing and implementing corporate social responsibility strategies and policies. 2. Skills: By the end of the study-unit the student will be able to: - Classify costs using different classification systems; - Apply FIFO and AVCO inventory valuation methods; - Compute wages using time rates, piece rates and premium bonus schemes; - Conduct payroll calculations and accounting: - Prepare an overhead analysis sheet and calculate overhead absorption rates; - Create cost statements using job costing and simple process costing (excluding normal losses, abnormal losses and valuation of work-in-progress); - Draw a break-even graph and calculate break-even from chart and mathematically; - Prepare profit statements for different levels of output using marginal costing (excluding inventory); - Contrast absorption costing and marginal costing; - Explore the benefits of marginal costing for decision making in situations of changes in the selling price and introducing or discontinuing a product; - Prepare a cash budget; - Make ethical judgement in relation to management decisions and advocate for strong corporate social responsibility; and - Make use of the knowledge acquired in the personal realm in view of acquiring a degree of financial literacy and autonomy. Main Text/s and any supplementary readings: Main Texts: Pace, A. and Xuereb, J. (2012). Cost and Management Accounting - Principles & Practice, Best Print Co Ltd. |
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| STUDY-UNIT TYPE | Lecture | ||||||||
| METHOD OF ASSESSMENT |
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| LECTURER/S | Emanuel Mizzi Joseph Xuereb |
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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 2026/7. It may be subject to change in subsequent years. |
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