Management Accounting 2

PURPOSE
To assist students to acquire an understanding of core management and cost accounting concepts and to develop the competence to apply associated principles and techniques as well as the pervasive skills as described in the SAICA competency framework, namely, ethical behaviour, professionalism, professional skills and associated personal attributes.

LEARNING OUTCOMES
On completion of this module students will be able to:

• explain the scope and relevance of management and cost accounting practices and procedures within a business entity;
• select, describe and apply core management accounting concepts;
• solve problems relating to decision-making, control and inventory valuation within a business entity;
• accurately and coherently communicate information gathered and solutions to problems using appropriate management and cost accounting conventions;
• demonstrate ethical behaviour and professionalism in their interpersonal interactions;
• demonstrate intellectual ability and the ability to apply oneself at a level which enables the development of life-long learning skills in the demanding context in which a Chartered Accountant works;
• demonstrate self-management through continual self-assessment of personal development needs and active use of appropriate learning opportunities, respecting deadlines, managing time and organising learning tasks logically;
• critically examine and interpret information, material and ideas relevant to core concepts in the field of management accounting as listed below.

CORE CONTENT

• The scope of management accounting and its relevance to a business entity.
• Core management accounting concepts related to decision-making, control and inventory valuation:
  • Cost terms and concepts.
  • Cost assignment.
  • Job costing.
  • Variable vs. absorption costing.
  • Cost-volume-profit analysis.
  • Relevant costing.
  • Standard costing and variance analysis.
  • Budgeting.
  • Risk and uncertainty.
  • Capital budgeting.