Business Accounting (BCom)

Second year module

An introduction to management accounting and its role in supporting the management of business entities, with particular focus on large organisations. Attention is given to the use of accounting information in making decisions, in producing plans, in the monitoring and control of operations, and in relating to the external financial environment. The approach concentrates on an understanding of the basis and limitations of management accounting information to permit its application and adaptation to business practice rather than the detailed operation of accounting systems and procedures. There is specific recognition of aspects of the economic context including financial markets and those for goods and services; behavioural considerations; uncertainty and the role of perception.

Learning Outcomes

By the end of this course students should be able to:

  • Discuss the use of management accounting in the operation of business entities.
  • Explain how management accounting relates to financial accounting and the relevance for financial markets.
  • Apply appropriate accounting techniques to a range of management tasks which includes: Routine decisions. Ad hoc decisions. Budgeting, budgetary control, performance assessment including variance analysis, pricing.
  • Demonstrate a basic understanding of the nature of profit anmd cost, giving attention to cash, cost behaviour, overheads, contribution, opportunity cost.
  • Discuss the use of management accounting in practice giving attention to relevant strengths and weaknesses.
  • Extend the application of management techniques to an analysis of business cases.

Assessment

  • 2 hr written examination