School of Economics, Finance and Business

MODULE CODE: ECOS1151

MODULE NAME: INTRODUCTION TO MANAGEMENT
ACCOUNTING

2014 - 15

PLEASE RETAIN THIS HANDBOOK FOR FUTURE REFERENCE.

IT MAY BE REQUIRED FOR SUBMISSION TO PROFESSIONAL
BODIES
WHEN
APPLYING
FOR
EXEMPTION
FROM
EXAMINATIONS.

INTRODUCTION TO MANAGEMENT ACCOUNTING

2014/2015
CONTENTS
Page

Teaching Staff

Module Aims

Learning Objectives

Key skills

Delivery Mechanisms

Student Workload

Formative Assessment

Summative Assessment

Assessment Criteria

Communication

Durham University Online (DUO)

Module Syllabus

Textbooks

Lecture Schedule

11

Student-centred Learning

16

NB This handbook is intended for the guidance of students taking this module in
2014/2015. Whilst the details contained in this handbook represent teaching staff
intentions at the time of writing, it is in the nature of higher education that some
module information, such as syllabus, lecture topics, reading lists and
assignments, may be subject to modifications during the teaching of a module.
Teaching staff reserve the right to make such minor changes in the matters
covered by this publication and will endeavour to publicise any such changes as
widely and timely as possible.

INTRODUCTION TO MANAGEMENT ACCOUNTING

2014/15
TEACHING STAFF

Module Leader:

David Kilgour
Tel: 0191 3345126
Wolfson Building, H111, Queens Campus
Stockton
E-mail: david.kilgour@durham.ac.uk

Lecturer:

Prof. Omneya Abdelsalam

Durham Mill Hill Lane
E-mail: omneya.abdelsalam@durham.ac.uk
https://www.dur.ac.uk/directory/profile/?id=12774

MODULE AIMS
The aim of the module is to introduce the basic concepts of Management Accounting and
to enable students to understand Management Accounting reports.
This will enable students to understand the relevance of accounting information in
business decisions, and thus place it in context of other modules on the
programmes in Business, Finance, and Economics.
It will help students to achieve the aims of the programmes by providing a sound
foundation in accounting for study in subsequent years. It will also allow students
to demonstrate an ability to work on their own and to communicate effectively,
both orally and in writing.
LEARNING OBJECTIVES OF THE MODULE

Learning objectives of the module including details of which key skills the module will
help students acquire is contained in:

http://www.dur.ac.uk/faculty.handbook/module_description/?
year=2014&module_code=ECOS1151

KEY SKILLS

This module will also give you the opportunity to develop the following key skills:
Interpersonal Communication - by discussing prepared material in seminars with both the
seminar leader and other students in the group, using e-mail to communicate with
other students and seminar leader.
Oral Presentation - by explaining the answers to seminar questions to other students and
the seminar leader; in general by actively participating in discussion during
seminars.
Planning, Organisation and Time Management - by preparing for seminars; observing the
assignment deadlines; downloading materials from DUO; reading relevant
material, working through examples, Activities and Review questions in the text
book before lectures and preparing for examinations.
Written Communication -by completing seminar assignments and through preparing for
the summative assessment.
Problem Solving and Analysis -by applying the necessary analytical and quantitative
skills, as well as the ability to manipulate concepts in Financial and Management
Accounting, in answering seminar questions and discussing them in seminars.
Initiative -by searching relevant literature and information in preparation for the seminars
and student-centred learning.
Numeracy -by applying core mathematical and statistical skills to answer a range of
Seminar and examination questions.
Computer Literacy and Information Retrieval -accessing, and downloading teaching
material from DUO; using e-mail to communicate with the seminar leader and
other students; undertaking bibliographical search, using spreadsheets for
exercises and information retrieval for student-centred learning.

DELIVERY MECHANISMS

The module is delivered by a mixture of lectures, seminars and student-centred learning

as follows:

Number
Lectures

Seminars

Frequency

Duration

10

Michaelmas Term

1 per week

2 hours

Epiphany Term

1 per week

2 hours

Easter Term

1 per week

2 hours

Michaelmas Term

1 every other
week

1 hour

Epiphany Term

1 every other
week

1 hour

Seminars provide a structured programme of work designed to reinforce knowledge and

encourage independent study. You are required to make contributions to the Seminars.
ALL students are required to prepare answers to the exercises set for each seminar in
advance and be prepared to enter into discussion of the issues.

For seminars you will be split into different groups. You MUST attend the seminar for the
Group to which you have been allocated. Attendance at seminars will be recorded,
and absences will count towards keeping of terms requirements. Physical
attendance without having done the work required will be recorded as absence.

STUDENT WORKLOAD

In addition to attending lectures and seminars and undertaking assessments, you are
expected to undertake reading and learning through studying the examples and
Activities as well as Review questions included in the textbook and such further
reading as interests you. This module is one of six you take during the year and
you should therefore spend one-sixth of your full-time on this module. There may
be some weeks during which you spend more time on one module and less on
others, but on average one-sixth of your time should be spent on this module.

The University Teaching and Learning Handbook defines a single undergraduate module
as a study unit comprising at least 200 hours of Student Learning Activity Time
(SLAT). The SLAT hours include all formal contact hours (lectures and seminars),
plus the time devoted to reading, and all preparation and reading time associated
both with the formal contact hours and the formative and summative assessments
(including assignments and examinations). As the formal hours for this module
(see Delivery above) total 52, you are expected to spend at least 148 hours on
other learning activities on this module.

FORMATIVE ASSESSMENTS

The aim of the formative assessments are to help you, in a structured way, to understand
the material and its applications, consolidate your knowledge and point out any
gaps in your understanding.

The formative assessments will be by means of computer based multiple choice questions
(MCQ) tests. These will be posted on Duo by a date to be given and you are asked
to take it at one uninterrupted sitting of at least one hour at any time that suits you
during the stated period. The test system provides immediate feedback after you
complete the test.

SUMMATIVE ASSESSMENT

This module is assessed by means of an examination in May/June. You should refer to

the Programme Handbook (see the section "Assessment of Performance") for information
on how we mark.

ASSESSMENT CRITERIA

Performance in the formative and summative assessments for the module is judged
against the following criteria:

Relevance to question(s)

Organisation, structure and presentation

Depth of understanding

Analysis and discussion

Use of sources and referencing

Overall conclusions

STAFF-STUDENT AND STUDENT-STUDENT COMMUNICATION

The lecturers will communicate with you via announcements in lectures and seminars,
notices on the notice boards, e-mails, the internal post and the announcement
board on DUO. You should check your e-mail and notice boards in the
Department regularly, possibly once a day. You should also check regularly the
module entry on DUO, where lecture material will be available for each lecture.

If you wish to communicate with fellow students on matters relating to the module, you
may send group e-mails via DUO, or individual e-mails. Alternatively, you can
ask your lecturer to make an announcement at the beginning/end of a lecture.

DUO
The following material will be posted on DUO:

A copy of this handbook

Seminar Groups

Lecture presentation slides

A formative Assignment in the form of a Multiple Choice Questions Test

Last years exam paper

Additional references

Web links

Any Timetable changes

Other announcements

You should consult the module entry on DUO at least every 3 days.

MODULE SYLLABUS

Detailed syllabus content is contained in:

http://www.dur.ac.uk/faculty.handbook/module_description/?
year=2014&module_code=ECOS1151

TEXTBOOKS

The core text for the module which you are required to obtain is:

Seal, Garrison & Noreen. (2012) Management Accounting, 4th Edition, McGraw-Hill
Education ISBN 978-007712989-7

This text is included in the first year package by publishers.

Additional Readings:

Atrill, P. and McLaney, E., Management Accounting for Decision Makers (latest
edition), Pearson Education

Bhimani, A., Horngern, C.T., Datar, S.M. and Foster, G., Management and Cost
Accounting, (latest edition), FT/Prentice Hall

Bhimani, A., Horngren, C.T., Sundem, G.L., Stratton, W.O., Burgstahler, D., and
Schatzberg, J., Introduction to Management Accounting, (latest edition), Pearson
Education.

Drury, C., Management & Cost Accounting, (latest edition), CENGAGE Learning

FIA & ACCA FMA/F2 Management Accounting (latest edition), BPP Learning
media Ltd

Hopper, Trevor, Deryl Northcott and Robert Scapens (eds), Issues in Management
Accounting (latest edition); FT/Prentice Hall

McLaney, E. and Atrill, P., Accounting An Introduction, (latest edition),

FT/Prentice Hall

Weetman, P., Management Accounting (latest edition), Pearson

Education (many copies in the library).

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TEACHING PROGRAMME
Michaelmas Term
Teaching Lecture Topic
Week

Seminar

1 Introduction to
management
accounting and the
module
Week
commencing

Recommended
Reading
Lecture: Seal Ch.1
or/and Weetman Ch.1

6/10/2014
2 Basic aspects of cost
accounting
Week
commencing

Lecture: Seal Ch.2

or/and Weetman Ch.2

13/10/2014
3 Materials cost &
Labour costs
Week
commencing

Seminar 1 - basic
aspects of cost
accounting

Seminar 1 - basic
aspects of cost
accounting

Week
commencing

Lecture: Seal Ch.3, 5

or/and Weetman Ch.4

Seminar 1: Seal
Chs.1,2 & 3

27/10/2014
5 Absorption costing
and marginal costing

or/and Weetman Ch.3

Seminar 1: Seal
Chs.1,2 & 3

20/10/2014
4 Overhead costs

Lecture: Seal Ch.3

Seminar 2 materials,
labour and overhead
costs

Week
commencing Introduction to ABC
costing
3/11/2014

Lecture: Seal Ch.6,8

or/and Weetman Ch.5

Seminar 2: Seal
Chs.3,5

11

6 ABC

Seminar 2 materials,
labour and overhead
costs

Week
commencing
10/11/2014
7 Job costing

Lecture: Seal Ch 6, 8
or/and Weetman
Chs.4,5

Seminar 2: Seal
Chs.3,5
Seminar 3 absorption
costing and marginal
costing; ABC costing

Week
commencing

Lecture: Seal Ch.3 &

5
or/and Weetman
Chs.6,7

17/11/2014
Seminar 3: Seal
Chs.5, 6, 8
8 Process costing

Seminar 3 absorption
costing and marginal
costing; ABC costing

Week
commencing

or/and Weetman Ch.8

Seminar 3: Seal
Chs.5, 6, 8

24/11/2014

9 Cost-Volume-Profit
(CVP) analysis

Lecture: Seal Ch.4

Seminar 4 job costing

and process costing

Week
commencing

Lecture: Seal Ch 7
or/and Weetman Ch.9

Seminar 4: Seal
Chs.1-5

1/12/2014

12

10 Cost-Volume-Profit
(CVP) analysis

Seminar 4 job costing

and process costing

Week
commencing Limiting factor
analysis (single)
8/12/2014

Lecture: Seal Ch 7
or/and Weetman Ch.9

Seminar 4: Seal
Chs.1-5

Epiphany Term

Teaching Lecture Topic

Week

Seminar

11 Relevant costs;
decision making
under uncertainty.

Recommended
Reading
Lecture: Seal Ch 9
or/and Weetman
Ch.10

Week
commencing
12/1/2015
12 Pricing.

Week
commencing

Seminar 5 decisionmaking under

uncertainty; CVP
analysis

19/1/2015
13 Forecasting
(regression and time
series)
Week
commencing

Lecture: Seal Ch 15
or/and Weetman
Ch.10

Seminar 5 : Seal
Chs.7-9
Seminar 5 decisionmaking under
uncertainty; CVP
analysis

26/1/2015

13

Web based on DUO

Seminar 5: Chs.7-9

14 Budgeting I

Week
commencing
2/2/2015

Functions of
budgeting

Seminar 6 Relevant
costs & Pricing

Lecture: Seal Chs 11,

13
or/and Weetman
Chs.13, 14

Budgeting
process/cycle

Seminar 6: Seal Ch.

9, 15
15 Capital Budgeting

Seminar 6 - Relevant
costs & Pricing

Week
commencing
9/2/2015

or/and Weetman
Chs.11, 12

Seminar 6: Seal Ch.

9, 15

16 Budgeting II

Week
commencing
16/2/2015

Week
commencing

Seminar 7 Budgeting

Preparation of
functional budgets
(including cash
budgets)

Lecture: Seal Ch 1113

or/and Weetman
Ch.13, 14

Preparation of the
master budget

17 Budgeting III

23/2/2015

Lecture: Seal Ch 10

Seminar: Seal Chs

11-13
Seminar 7 Budgeting

Budgetary control
and performance
measurement

Lecture: Seal Chs 1113

or/and Weetman
Ch.14-16

Fixed and flexible

budgets

Seminar 7: Seal Chs.

11-13

Behavioural
aspects of
budgeting

14

18 Performance
evaluation and
feedback reporting.

Seminar 8 budgeting
& cash budgeting

Week
commencing
Modern costing
2/3/2015 approaches.

19 Review of IMA and

looking ahead to
management
accounting in Years 2
Week
and 3.
commencing

Lecture: Seal 11-13

or/and Weetman
Chs.16,19

Seminar 8: Seal
Chs.11-13
Seminar 8 budgeting
& cash budgeting

Seminar 8: Seal Chs.

11-13

9/3/2015
CIMA presentation
(provisionally
timetabled).

Easter Term
Teaching Lecture Topic
Week

Seminar

20 Revision
(Question based)
Week
commencing
20/4/2015
21 Revision
(Question based)
Week
commencing
27/4/2015
22 Revision
(Question based)

15

Recommended
Reading

Week
commencing
4/5/2015

REQUIRED READING

The minimum reading from the core text you should have done prior to each lecture is
given above. The lecture programme will follow the core text as far as possible
but the lectures will at times cover material which is not necessarily in the core
text. For such lectures, you should look at material listed in further reading or
other works listed above.

STUDENT-CENTERED LEARNING

Students are expected to do a great deal of private study by: reading material to be
covered in lectures, in working through Activities, Review questions and
Examples in the textbook, in preparation for the seminars and to attempt the
formative assessments.
It is only by carrying out all that work and preparing for seminars that you will be able to
assimilate the material for this module.

Your learning will be attained by:

a) Doing all the required reading as outlined in this handbook for each lecture before the
lecture. This should be supplemented by additional reading indicated in the reading list
and further reading in the textbook.
b).Working through all activities and review questions included in the appropriate reading
outlined.
c) Attending all the lectures scheduled for this module. Making such notes as you feel are
appropriate at the lecture.
d) Doing the work set for each seminar. You are expected to do this independently.

16

e) Attending all the seminars and contributing to them. Mere physical presence is not
enough. You should actively participate by putting forward your results/views and
learning from the views put forward by your colleagues.
f) Individually taking the multiple choice questions (MCQ) test set as formative
assessment of the module. Revising any areas where you do not score well.

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