The role of management accounting in the management process; cost units objectives, concepts and classification; accounting for materials, labour and overheads; job costing, process costing and activity based costing; absorption and variable costing, cost-volume-profit analysis. Financial market instruments and their functions; Discounted cash flow approaches to investment decision-making and the evaluation of different sources of finance; Cost of capital and elementary financial management; Impact of dividend and capital structure policies.
Learning Outcomes
On completion of this module the student should be able to:
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Appreciate the conceptual framework of cost and management accounting including its role in decision-making;
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Have a thorough understanding of the documents, procedures and records relating to accounting for materials, labour and overheads;
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Have a detailed working knowledge of different costing methods.
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Evaluate investment decisions using discounted cash flow methods under the assumptions of certainly;
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Apply traditional approaches to incorporate risk in investment decisions;
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Explain the functions of financial markets and the main financial instruments found in them;
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Show the different ways in which a company can raise capital and its valuation;
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Calculate and make use of appropriate costs of capital;
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Explain how dividend and capital structure policies may affect a firm's value
Assessment
3 hr examination 75%, 2 continuous assessments 25%