UNIVERSITI TEKNOLOGI MARA KEDAH
Faculty
:
Faculty of Accountancy
Course Program
:
Diploma in Accounting (ACC110)
Course Subject
:
Management Accounting (MAF 310)
Semester
:
Resources Person :
Pn. Norehan Tahir
1.0 OBJECTIVE
2.0 ASSESMENT
3.0 SYLLABUS
3.1 Introduction to Management Accounting.
3.1.1
Differences between Management Accounting and Financial
Accounting.
3.1.2
The decision-making process.
3.1.3
Changing competitive environment.
3.1.4
Focus on customer satisfaction and new management approaches.
3.1.5
The impact of changing environment of management accounting
systems.
3.1.6
Functions of management accounting.
3.2 Classification of Costs by Behavior.
3.2.1
3.2.2
Classification of costs by its behavior.
•
Fixed costs
•
Variable costs
•
Semi-variable costs
Separation of semi-variable costs into fixed and variable element
using high-low method.
3.3 Marginal Costing.
3.3.1
3.3.2
3.3.3
Marginal costing
•
Definition of marginal costing
•
Uses of marginal costing
•
Contribution concept
•
Period and product costs under marginal costing
•
Profit and loss statement under marginal costing
Absorption costing
•
Definition of absorption costing
•
Period and product costs under absorption costing
•
Profit and loss statement under absorption costing
•
Over and under absorption of fixed overhead
Marginal costing and absorption costing: a comparison of their impact
on profit.
•
Production equal sales
•
Production exceeds sales
•
Sales exceeds production
3.3.4
Argument in support of marginal costing.
3.3.5
Argument in support of absorption costing.
3.4 Cost Volume Profit Analysis.
3.4.1
Introduction to cost-volume-profit analysis
•
Definition of CVP analysis
•
The economist’s model
•
The accountant’s CVP model
3.4.2
CVP analysis assumptions
3.4.3
Limitations of CVP analysis
3.4.4
Mathematical approach to CVP analysis
•
Contribution-sales ratio
•
Profit-volume ration
•
Break-even point
•
Computation of target volume to achieve desired profit
•
Margin of safety
(Using equation and formula)
3.4.5
3.4.6
Graphical approach:
•
Break-even chart
•
Contribution chart
•
Profit-volume chart
Multi product
3.5 Short Term Decision Making.
3.5.1
The meaning of relevance and irrelevance costs
3.5.2
Controllable uncontrollable costs
3.5.3
Sunk costs, notional costs and opportunity costs
3.5.4
Committed costs
3.5.5
Importance of qualitative factors
3.5.6
Types of short-term decision:
•
Involving limiting factors
•
Make or buy and outsource decisions
•
Accept or reject a special order
•
Add or delete
-
delete a product or segment
-
temporary shut-down
-
replacement of equipment
3.6 Pricing Decisions.
3.6.1
Introduction
3.6.2
Relevant costs and pricing decisions
3.6.3
Full costs-plus method
3.6.4
Marginal costs-plus method
3.6.5
Minimum pricing decisions
List of references
Drury, C. (2006). Cost and management accounting: an introduction. (6th ed.).
Australia: Thompson.
Call number: HF5686 .C8 D78 2006
Horngren, C. T.; Datar, S. M.; & Foster, G. (2006). Cost accounting: A managerial
emphasis. (12th ed.). NewJersey: Prentice Hall.
Call number HF5686 .C8 H67 2006
Helmkemp, J.G. Managerial accounting. New York: John Wiley & Sons.