MN0369 Management accounting today

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Synopsis of Module

The 1980's ushered in serious changes in the world market leading to European companies losing market shares to overseas competitors, who offered high quality products, with lower costs and more variety. To regain a competitive advantage, companies shifted strategic priority from low cost products to quality, flexibility, short deadline and dependable delivery. In addition, new manufacturing techniques and philosophies of production management were introduced. The implementation of these changes posed serious challenge to traditional accounting systems.

This module aims to explore a range of current practices and related issues relevant for supporting managerial decision making in world class manufacturing environment.

Aims of Module

The module aims to test the student's ability to:

1.Understand the changes which have taken place in the manufacturing business environment in the past 30 years, and the impact of the changes on accounting.
2.Discuss accounting response to the challenges posed by world class manufacturing philosophy and the attributes
3.Address the issue of transfer pricing
4.Examine the strengths and limitations of budgeting in a modern business environment

Learning Outcomes

Students will be able to:

1.Evaluate techniques for costing in a world class manufacturing environment
2.Differentiate between planning and motivational aspects of budgeting, and the role of budgeting in a world class environment
3.Discuss the factors influencing the design of performance measures including the emergence of non-financial performance indicators
4.Critically evaluate transfer methods

Outline Syllabus

Financial and non-financial performance indicators ( to include divisional performance)

Human Behaviour and the management accounting system

Transfer pricing

ABM, Life Cycle and Target Costing, Throughput Accounting

World Class Manufacturing

Summative assessment

Assessment A: Closed Book Examination (2 hours)

The weighting of this assessment is 100%