ACCT604 - Managerial Accounting

Year

Credit points

Campus offering

Prerequisites

ACCT600 Accounting for Decision Making

Teaching organisation

Unit rationale, description and aim

Traditionally, management accounting systems have tended to produce primarily financial information for managers. However, with increased competition, the nature of management accounting systems has been extended to encompass both quantitative and qualitative non-financial information to help not just managers but also other employees within organisations to support planning, control, and decision-making and sustainability strategies of organisations. Accordingly, this unit examines the role of management accounting information to manage an organization efficiently and effectively to create value. The aim of this unit is to develop knowledge and skills in the application of management accounting techniques for strategic planning, decision-making, budgetary control and performance management in organisations. The unit covers three principal parts: using costs for decision making; costing techniques and budget setting; and performance evaluation. The unit introduces a broad range of exercises based on “real-world” managerial situations, paying particular emphasis to building sustainable organisations.

Learning outcomes

To successfully complete this unit you will be able to demonstrate you have achieved the learning outcomes (LO) detailed in the below table.

Each outcome is informed by a number of graduate capabilities (GC) to ensure your work in this, and every unit, is part of a larger goal of graduating from ACU with the attributes of insight, empathy, imagination and impact.

Explore the graduate capabilities.

On successful completion of this unit, students should be able to:

LO1 - Explain the role of management accounting systems and develop the capacities to work for inclusive sustainable global economy (GA2, GA5) 

LO2 - Analyse costs and management concepts, and analytically explain how staff can realise a decent and productive work for just wages (GA5, GA8) 

LO3 - Analyse and synthesize costing information for business planning and control (GA4, GA5) 

LO4 - Apply the various strategic management accounting techniques and process to create value for customers and shareholders (GA3, GA5) 

Graduate attributes

GA2 - recognise their responsibility to the common good, the environment and society 

GA3 - apply ethical perspectives in informed decision making

GA4 - think critically and reflectively 

GA5 - demonstrate values, knowledge, skills and attitudes appropriate to the discipline and/or profession 

GA8 - locate, organise, analyse, synthesise and evaluate information 

Content

Topics will include:

• Role of Management Accounting in a Global Competitive Environment
• Basic Cost Concepts
• Cost Behaviour and Cost Estimation
• Product costing for financial reporting – Job and Process Costing Conventional Overhead Cost Allocation
• Activity-Based Costing
• Budgeting: Budgeted Income Statement and Budgeted Cash Flow Statement
• Standard Cost for Control
• Performance Evaluation
• Decision Making
• Measure and reporting sustainability

Learning and teaching strategy and rationale

Practice and applied practical activities are essential for learning accounting. Therefore, students are expected to adopt an ‘active’ learning strategy and learn by doing. ACU’s teaching policy focuses on learning outcomes for students in the form of knowledge, capabilities and background. Our teaching aims to engage students as active participants in the learning process while acknowledging that all learning must involve a complex interplay of active and receptive processes, the constructing of meaning for oneself, and learning form others. ACU promotes and facilitates learning that is autonomous and self-motivated, is characterised by the individual taking satisfaction in the mastering of content and skills and is critical, looking beneath the surface level of information for the meaning and significance of what is being studied. The workshops provide an interactive environment for involving in class discussions and exchange ideas. Learning materials used in the unit encompass readings, lecture slides, lecture recordings, audio and video materials, self-tests, case studies, solutions to selected problems and other online relevant tools.

Mode of delivery: This unit is offered in different modes. These are: “Attendance” mode, “Blended” mode and “Online” mode. This unit is offered in three modes to cater to the learning needs and preferences of a range of participants and maximise effective participation for isolated and/or marginalised groups.

Attendance Mode

In a weekly attendance mode, students will require face-to-face attendance in specific physical location/s. Students will have face-to-face interactions with lecturer(s) to further their achievement of the learning outcomes. This unit is structured with required upfront preparation before workshops, most students report that they spend an average of one hour preparing before the workshop and one or more hours after the workshop practicing and revising what was covered. The online learning platforms used in this unit provide multiple forms of preparatory and practice opportunities for you to prepare and revise.

Blended Mode

In a blended mode, students will require intermittent face-to-face attendance determined by the School. Students will have face-to-face interactions with lecturer(s) to further their achievement of the learning outcomes. This unit is structured with required upfront preparation before workshops. The online learning platforms used in this unit provide multiple forms of preparatory and practice opportunities for you to prepare and revise.

Online Mode

In an Online mode, students are given the opportunity to attend facilitated synchronous online seminar classes with other students and participate in the construction and synthesis of knowledge, while developing their knowledge. Students are required to participate in a series of online interactive workshops which include activities, knowledge checks, discussion and interactive sessions. This approach allows flexibility for students and facilitates learning and participation for students with a preference for virtual learning.

Assessment strategy and rationale

Assessments are used primarily to foster learning. ACU adopts a constructivist approach to learning which seeks alignment between the fundamental purpose of each unit, the learning outcomes, teaching and learning strategy, assessment and the learning environment. In order to pass this unit, students are required to achieve an overall score of at least 50% and attempt all assessment items. Using constructive alignment, the assessment tasks are designed for students to demonstrate their achievement of each learning outcome.

Assessments are the same regardless of whether teaching mode is attendance, blended, or online. This is indicated in overview of assessment table below

Overview of assessments

Representative texts and references

Eldenburg, LG, Brooks, A, Oliver,J, Vesty, G, Dormer,R., Murthy, V, Pawsey, N 2020, Management Accounting, 4th ed., John Wiley & Sons.

Bhimani, A, Horngren, CT, Datar, SM,& Rajan, MV 2019, Management and Cost Accounting, 7th ed., Pearson.

Blocher, E., Stout, D, Juras, P & Cokins, G 2018, Cost Management: A Strategic Emphasis, 8th ed., McGraw-Hill, North Ryde.

Hilton, RW, Platt, DE 2020, Managerial Accounting: Creating Value in a Dynamic Business Environment, 12th ed., McGraw-Hill.

Winston, W 2019, Microsoft Excel 2019 Data Analysis and Business Modeling, 6th ed., Pearson Education.

Balstad, MT, Berg, T 2020, ‘A long-term bibliometric analysis of journals influencing management accounting and control research’, Journal of Management Control, vol 30, pp. 357–80, <https://doi.org/10.1007/s00187-019-00287-8>.

Gunarathne ADN, Lee, K-H, Hitigala Kaluarachchilage PK  2021, ‘Institutional pressures, environmental management strategy, and organizational performance: The role of environmental management accounting’, Business Strategy and the Environment, <https://doi.org/10.1002/bse.2656>

Hadid, W & Al-Sayed 2021, ‘Management accountants and strategic management accounting: The role of organizational culture and information systems’, Management Accounting Research, vol 50, March, < https://doi.org/10.1016/j.mar.2020.100725>

Otley, D 2016, ‘The contingency theory of management accounting and control: 1980–2014’, Management Accounting Research, vol 31, June, < https://doi.org/10.1016/j.mar.2016.02.001>

Rikhardsson, P, Yigitbasioglu, O 2018, ‘Business intelligence & analytics in management accounting research: Status and future focus’, International Journal of Accounting Information Systems,vol 29, pp. 37-58, < https://doi.org/10.1016/j.accinf.2018.03.001.>.

United Nations 2020, Transforming our world the 2030 Agenda for Sustainable Development, < https://sdgs.un.org/publications/transforming-our-world-2030-agenda-sustainable-development-17981>