Scribd
Upload
28 views3 pages

ACC 222

ACC 222: Cost and Management Accounting II aims to equip students with skills in producing cost and management accounting information for organizational planning and control. The course covers topics such as budgeting, variance analysis, cost estimation, decision making, and performance measurement, with a focus on practical applications in various industries. It includes lectures, seminars, and assessments through tests and assignments, and is a core course worth 10 credit points.

Uploaded by

simkokoshadrack
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
28 views3 pages

ACC 222

ACC 222: Cost and Management Accounting II aims to equip students with skills in producing cost and management accounting information for organizational planning and control. The course covers topics such as budgeting, variance analysis, cost estimation, decision making, and performance measurement, with a focus on practical applications in various industries. It includes lectures, seminars, and assessments through tests and assignments, and is a core course worth 10 credit points.

Uploaded by

simkokoshadrack
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

ACC 222: COST AND MANAGEMENT ACCOUNTING II

i Course title: ACC 222: COST AND MANAGEMENT ACCOUNTING


II
ii Course aim: The course seeks to provide students with an understanding
of, and ability to produce cost and management accounting
information that is used in planning and control of
organizations. Particular emphasis is placed on mastering the
topics of budgeting, variances and performance evaluation,
relevant costs for decision making, pricing, treatment of
overhead and allocations, and considering the influence that
human behavior and strategic direction have on those
processes and the use of this cost accounting information.

iii Course expected learning At the end of the course, a student should able to:
outcome(s):  Apply accounting techniques in business investments
decisions based on future events
 Prepare business plan and budgets of activities and
operation that put into accounts future uncertainties.
 Apply budgeting concepts to various organizations
and industries and prepare pertinent budgets and
reports.
 Evaluate the transfer prices of intermediate products
between and among departments of the same
organization
 Evaluate business performance and recommend
appropriate performance measures
 Evaluate costs that are relevant in the decision making
process
 Explain profit planning and how the master budget
and/or flexible budgets affect and are affected by such
planning

iv Course status-core or elective: Core


v Credit rating: 10 credit points
vi Total hours spent: 100
vii Course Content: 1. THE BUDGETING AND BUDGETARY
CONTROL
 Introduction to budgeting process
 Types of budget
 Uses of budgets
 Advantages of Budgets
 Preparation of Master budgets
 Budgeting in Non-profit organizations
 Behaviour aspects in budgeting
2. STANDARD COSTING AND VARIANCE
ANALYSIS
 Introduction to standard costing
 Types of standards
 The use of standard costing systems for control
 Variance analysis
 Material, labor and Factory overhead variances
 Computation and interpretation of basic cost
variances
 Computation and interpretation of sales variances
 Mix and Yield variances
 Planning and operating variances
 Accounting for variances
3. COST ESTIMATION AND LINEAR
PROGRAMMING MODEL IN ACCOUNTING
 Concept of cost estimation
 Reasons for cost estimation
 Methods of cost estimations
 Interpreting results in cost estimation
 Application of linear programming model in cost
accounting
 Linear programming graphical and equation models
 Linear programming simplex model
4. ALTERNATIVE PRODUCT COSTING METHODS
 Marginal and Absorption Costing
 Comparison of marginal and absorption costing
 Preparation of profit statement under marginal and
absorption costing methods
 Reconciliation of the profit under alternative methods
 Evaluation of the two methods
5. COST, VOLUME AND PROFIT ANALYSIS
 Cost, revenue and profit relationships
 CVP assumptions
 Uses of CVP analysis
 Break-even point analysis
 Methods of Calculating breakeven points
 The contribution Margin and Contribution ratio
 The P/V chart
 Marginal of safety
 Sensitivity analysis
 Degree of operating leverage and CVP analysis
 Limitation of CVP analysis
6. DECISION MAKING
 Relevant costs and revenue for Decision-Making
 Decision making under risk conditions
 Decision making methods under risk conditions
 Decision making under uncertainty conditions
 Decision making methods under uncertainty
conditions
 Value of perfect and imperfect information.
 Decision making in certainty condition
7. PRODUCT PRICING
 Product and service pricing process
 Pricing policy
 Pricing objectives
 Product pricing strategies
 Product pricing methods
 Pricing and Idle capacity and with opportunity cost.
8. RESPONSIBILITY ACCOUNTING AND
PERFORMANCE MEASUREMENT
 Concept of responsibility accounting
 Cost, revenue, profit and investment centre
 Performance evaluation under responsibility
accounting
 Performance measurement models (ROI, RI, EVA,
and SVA).
 Advantages of responsibility accounting
 Disadvantages of responsibility accounting
9. DECENTRALIZATION AND TRANSFER
PRICING
 Concept of Decentralization
 Advantages and disadvantages of decentralization
 Decentralization in Multinational firms
 Transfer pricing
 Transfer pricing methods
 Calculating transfer pricing methods

viii Teaching and learning Lectures, seminars, assignments and independent study
activities:
ix Assessment Methods: Test, Individual Assignment, Group Assignment and Final
examination.
x Reading list : Books:
 A Managerial Emphasis, 15thed, Englewood Cliffs:
Prentice- Hall.
 Drury, C (2015). Cost and Management and Cost
Accounting, 9thed, London: International Thomson
Business Press.
 Garrison, D, Noreen, E and Brewer, P (2014),
Managerial Accounting, 15thedNew York, USA..
McGraw-Hill, Irwin.
 Hilton, R, Maher, M and Selto, F (2012), Cost
Management: Strategies for Business Decisions, Inter.
Edition, New York, USA: McGraw Hill, Irwin,.
 Horngren, C, Datar, S and Rajan, M, (2014) Cost
Accounting:
 T. Lucey, (2008) Costing,7thed, D.P. Publication,
London.

You might also like