Managment Accounting

SCHOOL OF BUSINESS UNIT DESCRIPTION Master of Professional Accounting MIT665702 Management Accounting Trimester 1, 2013 1. ENTRY REQUIREMENTS AND SUBJECT WEIGHTING Prerequisites: MIT665801 Today’s Accounting Practitioner Corequisites: N/ A Credit Points: 15 credit points Level: Year 3 Core Unit Workload: Timetabled hours/ week: 3: Lecture and Tutorial Personal study hours/ week: Minimum of 6 hours per week 2. STAFF Unit Coordinator Lecturer: Tutor/ Melbourne: Unit Moderator Geoffrey George Peter Ngigi Wayne Smithson (Sydney) Peter Ngigi Wayne Smithson [email protected] [email protected] [email protected] 3. BRIEF DESCRIPTION Management Accounting explains to students the function and role of the management accountant in a contemporary business environment. Students should become competent in applying management accounting theories, tools, and practices in assisting decision making and in defining and resolving other problems common to management. In addition, the unit should develop an understanding of how to identify, seek out, and present information needed by management in decision making. The overall objective of this unit is to give students an understanding of the role of the management accountant in planning, decision making and controlling. This unit considers the fundamental concepts and tools used by accountants to provide information for planning and control and decision making. There is also an emphasis on extending the awareness of the internal and external factors that influence business operations and decisions. This unit will cover the following topics: 1. 2. 3. 4. 5. 6. 7. 8. 9. Strategy and performance measurement; Measuring and reporting Sustainability; The difference between Job and process Costing; Activity Based Costing and Management; Budgeting and variance analysis; Corporate Allocations; Financial Decision making Pricing strategies; Capital Investment decisions 4. LEARNING OUTCOMES Capabilities: At the completion of this unit, students will be able to: a) Understand the function and role of the management accountant in the contemporary business environment; b) Apply management accounting practices and theories to solve management problems; c) Identify and justify appropriate management accounting systems that assist in making management business decisions; and 1 © Melbourne Institute of Technology.. Trimester 1, Mar 2013 UNIT DESCRIPTION FOR MIT665702 Management Accounting Competencies d) Be able to develop flexible approaches to problem solving; e) Be able to apply different calculations to different circumstances to achieve the desired outcome; f) Be able to assist management decisions by providing accurate and applicable financial information to aid decision making. Professional Skills g) Present solutions on management issues orally and in writing; h) Apply different management accounting theories to the resolution of management decisions for business and accounting Values i) Students will also obtain an appreciation for the importance of both elements of accounting – financial and management as a result of undertaking this subject. 5. GRADUATE ATTRIBUTES Description of the Graduate Attributes covered in this unit: MIT Graduate Attributes Evidence and Notes Written an d oral communication in tutorials and assignments Learning skills developed Ethical aspects of auditing addressed Auditing problems and issues addresses in tutorials Auditing addressed in a global setting Work in groups in tutorials, group assessments Auditing topics addressed Ability to Communicate Independent and Lifelong Learning Ethics Analytical and Problem Solving Cultural and Global Awareness Team work Knowledge of Field Map of Graduate Attributes Covered in this unit: Ability to communicate Independent Lifelong Learner Ethics Problem Solving Cultural Global Awareness Teamwork Knowledge of Field 1 3 1 1 2 3 1 Legend: 1 2 3 4 5 Colour coding Extent covered 1. 2. 3. Significant, demonstrable, clearly linked and addressed by activities Less significant, addressed by, but less clearly linked to, activities Addressed in the normal running of the unit, not clearly linked to activities 4. 5. Addressed superficially, in passing, as a side issue Not addressed at all 6. CONTENT This unit will cover the content below: Week Topic 1 An Introduction to Management Accounting Strategy 2 Balanced Scorecard 3 Cost-Volume- Profit Analysis 4 Decision Making and Relevant Information 5 Product and Service Costing 6 7 8 9 10 11 12 Tutorial Questions Q1.4; Q1.8; P1.27; Q15.1; Q15.2; Q15.3 Q15.6; Q15.8; E15.22; E15.23 E3.4; E3.18; E3.23; P3.35 Student Practice: Q4.2; Q4.8; E4.18; E4.19 Tutorial: Exercises 4-21, 23; Problem 4-33 Student Practice: Q5.1; Q5.10; P5.42; P5.43 Tutorial: Exercises 5-15, 16, 17, 30 & 31 Activity Based Costing and Student Practice: Q7.13; Problems 7-38, 39 Management Tutorial: Exercises 7-21, 23, 26 Pricing Decisions Student Practice: E10.1; E10.10; P10.22 Tutorial: Exercises 10-14 Problem 10-20 Budgetary Planning and Student Practice: Q11.3; E11.16; E11.27 Control Tutorial: Exercises 11-18, 19, 26 Standard costs Student Practice: Q12.1; Q12.7; P13.38 Tutorial: Exercises 12-22, 23 Problem 12-43 Group Presentations Group Presentations Capital Investment Analysis Student Practice: E18.2; E18.18; E18.21 Tutorial: Exercises 18-20,24 Problem 18-29 Revision Lecture Revision exercises Reading Horngren Chapter 1 Horngren Chapter 15 Horngren Chapter 15 Horngren Chapter 3 Horngren Chapter 4 Horngren Chapter 5 Horngren Chapter 7 Horngren Chapter 10 Horngren Chapter 11 Horngren Chapter 12 Horngren Chapter 18 Group Reports due 7. TEXT BOOK & REFERENCEREADING Text book: Horngren, C.T., Datar, S. M., Foster, G., Rajan, M.V. and Ittner, C., Cost Accounting: A Managerial st Emphasis, 2011, 1 Australian Edition., Sydney, Pearson Prentice-Hall. References: Weygandt, J.J., Kimmel, P.D., and Kieso, D.E., Managerial Accounting: Tools for Business Decision th Making, 2008, 6 ed., New Jersey, John Wiley & Sons. Garrison, R.H., Noreen, E.W. and Brewer, P.C., Managerial Accounting, 2006, 11th ed., Sydney, McGraw Hill. Langfield-Smith, K., Thorne, H., and Hilton, R. W., Management Accounting: Information for Creating and Managing Value, 2009, 5th ed., Sydney, McGraw-Hill. McWatters, C. S., Morse, D. C., Zimmerman, J. L., Management Accounting: Analysis and Interpretation, 2nd ed., Sydney, McGraw-Hill, 2001. 8. LEARNING ACTIVITIES Each student is expected to: 1. Attend all scheduled lectures and tutorials and complete all prescribed work by the due date; 2. Read all prescribed text references and other material referred to throughout the course; 3. Actively participate via listening in lectures, completing prescribed course work and by identifying areas requiring clarification and asking questions in classes to gain clarification. 4. Consistently apply himself/ herself to the course throughout the semester. MIT665702 Management Accounting © Melbourne Institute of Technology Trimester 1, March 2013 Laboratories and tutorials are specifically designed so that students may gain clarification throughout the semester. Students risk not gaining the necessary clarification of course material if they delay their study rather than consistently apply themselves throughout the semester. 9. ASSESSMENT Assessment Task Release Date Due Date A 5 in Week 5 in tutorial Week tutorial Group presentation Week 3 Week 10 Group Report Week 3 Week 12 Final Examination (3 End of semester hours) TOTALS B 10% Early evaluation test 10% 30% 50% 40% Learning Outcomes Assessed a, b & e c&g c, g, f & h a-i 60% 10. ASSESSMENT CRITERIA In order to receive a pass or higher grade in this unit students must complete all Type-A and Type-B assessment tasks and must obtain at least 50% overall AND at least 45% on the Final Examination. Late assignments / exercises: Late assignments will be penalised at the rate of 10% per day, that is, an assignment is marked out of 90% for 1 day late, 80% for 2 days late, etc. and after 5 working days, assignments will attract zero marks. Assignment Submission: All written assignments for this subject except the examination and in-class tests must be submitted to the Assessment Collection Centre, Level; Melbourne Level 7 , Sydney Level 3. Students must attach an assignment cover sheet to the front of the assignment. The cover sheet is available on https:/ / online.mit.edu.au/ ams/ Special Consideration: In the case of serious illness, loss or bereavement, hardship or trauma students may be granted special consideration. Your completed Application for Special Consideration (available from the website or level 8 Reception) and supporting documentation must be submitted directly to the School's Administration Office. You must submit this application no later than three working days after the due date of the specific piece of assessment or the examination for which you are seeking Special Consideration. Further information is available at: http:/ / www.mit.edu.au/ about-mit/ institute-publications/ policies-procedures-and-guidelines/ specialconsiderationdeferment Available Grades: A list of the available grades, a description of the corresponding required student performance and the required percentages for the unit is also given in the MIT Handbook and the MIT website. Grade Distribution Table HD D C P MN MIT665702 Management Accounting © Melbourne Institute of Technology 80% and above 70 – 79% 60 – 69% 50 – 59% 40 – 49% Trimester 1, March 2013 N 0-39% 11. PLAGIARISM It is important to learn from the work of others and you are encouraged to explore the library, World Wide Web resources and have discussions with other students. However work for assessment must be entirely the student's own work. Plagiarism—copying or using the work of others without giving details of the source of information—is not acceptable. All sources used and any collaboration in the exploratory work for an assignment must be clearly acknowledged using standard academic referencing. You must not allow other students to copy your work and must take care to safeguard against this happening. In cases of copying, normally all students involved will be penalised equally; an exception will be if you can demonstrate the work is your own and you took reasonable care to safeguard against copying. Plagiarism is a serious offence. Typically, students who are caught plagiarising will, for a first offence, be given a zero mark for that task. A second offence will normally result in a failing grade for the unit(s) involved. For http:/ / www.mit.edu.au/ about-mit/institute-publications/ statutes-andmore information refer to: regulations/ regulation-312-plagiarism 12. ACADEMIC REGULATIONS Students should note that supplementary information concerning teaching, learning, and assessment may be provided from time to time. In response to unforeseen circumstances this may include changes in times or location of classes, order of the schedule or due dates for assignments. Announcement of these matters in classes and placement of a notice on the officially designated noticeboard shall be deemed to be official notification. Students are advised to acquaint themselves with the academic regulations regarding progress as outlined in the MIT Handbook and the MIT website. 13. STUDENT SUPPORT It is recommended that students who have life circumstances or personal limitations that may affect their course of study and should refer to the list of Student Services contacts on the official notice board, and to the Special Consideration policy in the Student Handbook. 14. STUDY SKILLS Study Skills support is available on Level 10 MIT Melbourne and Level 7 MIT Sydney. For more information refer to: http:/ / www.mit.edu.au/ student-resources/ student-services/ study-skillsacademic-services MIT665702 Management Accounting © Melbourne Institute of Technology Trimester 1, March 2013