You will learn about managing the costs of creating value: Determination of target costs from target prices, Throughput accounting, Environmental accounting, Components of the value chain, Profitability along the value chain, Life cycle costing and its implication for market strategies, Impact of JIT and quality management on efficiency, inventory and costs, Benefits of JIT and TQM, Kaizen, continuous improvement and cost of quality reporting Logic of ABC as the foundation or managing costs, ABM to transform efficiency of repetitive overhead activities, ABM to analyse and improve customer profitability, ABM to analyse and improve channel performance.

Capital investment decision-making: Pricing decisions for maximising profit in imperfect markets, Types of pricing strategies, Origination of proposals and creation of capital budgets, Time value of money, Comparing annuities, Profitability index for capital rationing, Decision to make follow-on investment, Incremental cash flows, Tax, inflation and other factors, Perpetuities, Qualitative issues, Sources and integrity of data and role of business intelligence systems, Capital investments appraisal techniques.

Managing and controlling the organisational performance: This will involve examining organisational structure and culture, and group behaviour. Issues concerning divisional performance measurement will also be covered. Performance management information systems analyse past performance and suggest ways for improving financial and non-financial performance. Sources of management Information. Internal and external benchmarking, transfer pricing, Non-financial performance indicators, Balanced scorecard Controllable and uncontrollable costs and revenue, and performance analysis in public and private sector organisations. Costs variability, attributable costs and revenue and identification of appropriate measures of performance. Use of data analytics in performance management of responsibility centres

Risk and Control: Upside and downside risks, TARA framework, Business risks, use of information systems and data in managing risks, Quantification of risk, use of probabilistic models to interpret distribution of project outcomes, Stress-testing of projects, Decision trees, Decision-making under uncertainty

Online Test (1 hour) (20%) (LO 1)

An exam of the length of 2 hours plus 10 minutes reading time. (80%) (LOs 2-4)

148 hours of student-centred activities involving reading, self-assessed exercises, case study analysis, feedback and revision.

52 hours of contact time will engage students with 26 hours of formal lectures/large group activity and 26 hours of workshops in which students will engage with a mix of lectures/tutorials/large and small group activities, including presentations and peer assessment and undertake formative assessment.

The increased contact hours above the University standard are to provide essential learning opportunities to gain the appropriate level of attainment for Professional Body exemptions.

The number of study hours for this module is 200 hours to meet the Professional Body accreditation requirements

The lectures will provide the main advanced financial accounting themes, analysis of concepts and their application. This knowledge will be reinforced by the preparation and discussion of questions in the tutorials and by students self-directed study time. The latter will include visiting corporate websites to support the knowledge acquired.

1. Understand and analyse value management techniques to manage costs and improve value creation.

Enquiry, Analysis & Learning.

2. Understand and analyse risk and uncertainty associated with capital investment decision-making.

Understanding & Analysis.

3. Apply management accounting methods for managing and controlling organisational performance.

Application, Communication, Knowledge & Problem Solving.

4. Critically evaluate the significance of the behavioural aspects of management accounting in the context of management control and management

Reflection & Analysis.

The University Library and Learning Resources

Books and academic journals

The module VLE

Electronic databases

Learning support materials

IT facilities

Presentation facilities

CIMA2: Management paper P2- Advanced Management Accounting (study text for exams in 2015 and 2016) BPP.

ACCA: Paper F5- Performance Management (study text for exams in 2015 and 2016) BPP.

Recommended text:

Seal, W., Rohde, C., Garrison, R, and Noreen, E., (2015) Management Accounting. 5th ed. McGraw-Hill International (UK) Ltd.

Weetman, P., (2010) Management Accounting. 2nd edition, Prentice Hall.

This module builds on your previous study of management accounting and begins by distinguishing between strategic, managerial and financial planning and controls. The module will introduce you to control theory; particularly aspects of information systems and control, including internal and external sources of information. Focusing on managing the costs of creating value and capital investment decision-making. You will study investment appraisal and planning, as well as control and performance evaluation.