PACC6001

Management Accounting

10 Units

Within organisations accounting practice and data directly influence everyday management decision making. The course introduces students to the concept of cost, cost behaviour, product costing systems, cost allocation and activity-based costing and standard costing control systems. Professional communication within management settings and contexts will be emphasised as an important attribute.

Faculty Faculty of Business and Law
School Newcastle Business School
Availability Semester 1 - 2014 (Sydney Bathurst Street)
Semester 2 - 2014 (Sydney Bathurst Street)

Previously offered in 2013, 2012, 2011, 2010, 2009, 2008

Objectives

On successful completion of this course, students will be able to:

  1. Explain the purposes of job costing and understand the procedures used in a job costing system;
  2. Complete cost of production reports under weighted average and FIFO costing methods and explain their content;
  3. Complete cost of production reports for multiple cost centres using weighted average and FIFO costing methods;
  4. Prepare reports under operations costing;
  5. Explain and critically evaluate the overhead allocation problem and the use of various allocation methods;
  6. Review the advantages and disadvantages of dual and single-rate allocation bases for service department costs and the relative merits of using budgeted and actual costs and activity levels;
  7. Assign service department costs using the direct, step and reciprocal methods;
  8. Compare ABC to traditional absorption costing and the limitations of each;
  9. Explain and perform the basic steps in the implementation of an ABC system;
  10. Explain the concepts of joint-costs, split-off points, separable costs, joint products and by-products; to account for joint products and by-products and relevance to decision making;
  11. Explain how standard costing can be used to control costs, and interpret variances from standard material, labour and overhead costs; and discuss the behavioural implications of standard costing systems;
  12. Distinguish flexible budgets from static budgets and to compute and explain variances from overhead budgets.
Content

The course deals with the principles and methods in the determination of the cost of activities, products, and services and the issues involved in such determination. Relevant conceptual costing models, the various approaches to costing for purpose of stewardship and management needs are examined.

  1. To impart knowledge about and develop a fundamental understanding of the principles and methods in the determination of the cost of activities, products and services;
  2. To heighten critical understanding of the conceptual elements, parameters, strengths and weaknesses of the range of generally accepted costing models;
  3. To reinforce sound reasoning, critical analysis and judicious judgement in the selection and application of relevant conceptual costing models for the various costing, financial reporting and management decision making purposes.
Replacing Course(s) Nil
Transition Nil
Industrial Experience 0
Assumed Knowledge PACC6000 Financial Accounting 1
Modes of Delivery Internal Mode
Teaching Methods Lecture
Assessment Items
  • Essays / Written Assignments -
  • Examination: Formal -
  • Quiz - Class -
Contact Hours
  • Lecture: for 3 hour(s) per Week for Full Term
Compulsory Components
  • Requisite by Enrolment: This course is only available to students enrolled in the Master of Professional Accounting, Master of Professional Accounting (Advanced) and Master of Professional Accounting/Master of Business.
Course Materials None listed
Timetable 2015 Course Timetables for PACC60011

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