2015 Management Accounting 310 Course Outline

MANAGEMENT ACCOUNTING 301 & 310 (PMA 711s & GMA 711s)
All staff and students of the Polytechnic of Namibia, upon signing their employment contracts and
registration forms, commit themselves to abide by the policies and rules of the institution. The core
activity of the Polytechnic is learning and in this respect academic honesty and integrity is very
important to ensure that learning is valid, reliable and credible.
The Polytechnic therefore does not condone any form of academic dishonesty, including
plagiarism and cheating on tests and assessments, amongst other such practices. The
Polytechnic requires students to always do their own assignments and to produce their own
academic work, unless given a group assignment.
Academic Dishonesty includes, but is not limited to:
 Using the ideas, words, works or inventions of someone else as if it is your own work.
 Using the direct words of someone else without quotation marks, even if it is referenced.
 Copying from writings (books, articles, webpages, other students’ assignments, etc.),
published or unpublished, without referencing.
 Syndication of a piece of work, all or part of an assignment, by a group of students, unless
the assignment was a legitimate group assignment.
 The borrowing and use of another person’s assignment, with or without their knowledge or
 Infringing copyright, including documents copied or cut and pasted from the internet.
 Asking someone else to prepare an assignment for you or to write or sit an assessment for
you, whether this is against payment or not.
 Re-submitting work done already for another course or programme as new work, so-called
 Bringing notes into an examination or test venue, regardless of whether the notes were
used to copy or not.
 Receiving any outside assistance in any form or shape during an examination or test.
All forms of academic dishonesty are viewed as misconduct under the Polytechnic Student Rules
and Regulations. Students who make themselves guilty of academic dishonesty will be brought
before a Disciplinary Committee and may be suspended from studying for a certain time or may be
expelled. All students who are found guilty of academic dishonesty shall have an appropriate
endorsement on their academic record, which will never be erased.
Course Information
Course Code and Title:
PMA711s – Cost and Mgt Accounting 301
GMA711s – Cost and Mgt Accounting 310
Accounting, Economics & Finance
Bachelor of Accounting
Contact Hours:
3 hours per week (Lectures)
1 hour per week (Tutorials/Assignments)
NQF Level
Course Description:
This course focuses on the use of accounting information for planning and control of an
organization. It emphasizes how mangers can use accounting information to control an
organisation.In addition investment and appraisal techniques used in businesses are introduced.
Cost and Management Accounting 201
Cost and Management Accounting 202
Course Equivalencies:
Course Delivery Methods:
The course will be offered on full time (FM), Part-time (PM) and Distance (DI) modes in terms of
the prevailing Polytechnic of Namibia rules and regulations.
The course will be facilitated through the following learning activities:
1. Presentation of materials in lectures
2. Presentation of materials by distance
3. Assigned readings and discussions
4. Guest lectures
Tests and assignments
The assessment for this course will be based on continuous assessment and end of semester
examination (three-hour paper). The Continuous Assessment (CA) mark is made up of two class
tests and/or assignments and contributes as follows to the Final Mark:
Full-time and Part-time modes:
Continuous assessment: 40% of the final mark
Final examination:
60% of the final mark
A candidate will gain admission to the examination by obtaining a continuous
assessment/assignments mark of at least 40%. In order to pass the course, a student needs a
final mark of at least 50%. A sub-minimum of 40% must be obtained in the examination.
The examination shall consist of a single three hour paper.
The following communication tools may be used in this course:
E-learning, Email, Discussion Board, Scheduled Chats, Unscheduled chats, Online content,
facebook, etc
Course Format:
The course will be delivered through scheduled lecturers in accordance with the approved
departmental time table.
Effective Date:
4th February 2015
Course Coordinator
A. Makosa
Lecturer’s Information
Lecturer’s name:
Office phone:
Office location:
Office hours:
A. Makosa
[email protected]
+264 61 207 2816
Room 326, 3rd Floor, Office Building
Monday to Friday 07h30 – 16h30
W. Dreyer
[email protected]
+264 61 207 2102
Room 328, 3rd Floor, Office Building
Monday to Friday 07h30 – 16h30
Consultation hours:
All lecturers are available for consultation with students. Consultation times can be found on the
doors of lecturers’ offices.
Technology & Equipment Readiness:
Students will be expected to possess basic computer skills to enable students to send emails and
receive information online i.e. through email and e-learning.
Student Commitments and Contact Times:
It is a requirement that students attend all lectures as scheduled. Failure to fulfill this requirement
may result in the student being unable to qualify for the examination should the attendance fall
below the minimum of 80% as per the current regulations.
Prescribed Reading:
Bhimani, Horngren, Datar and Foster. (Latest). Management and Cost Accounting. Financial
Times Press
Recommended Reading:
1. Drury C. (Latest). Management and Cost Accounting. Cengage Learning
2. Lucey T. (Latest). Costing. Cengage Learning
3. Chadwick L. (Latest). Essence of Management Accounting. Financial Times Press
4. Correa, Langfiled-Smith, Thorne and Hilton. (Latest). Management Accounting. Mc Graw Hill
Important websites
Learning Outcomes:
At the end of the course students will, through assessment activities, show evidence of their ability
differentiate between budgeting and budgetary control
compile various functional budgets and prepare a master budget
prepare and appraise zero-based (ZB) budgeting
analyse the behavioural implications of budgeting
analyse operations in a standard costing system
calculate and investigate variances
discuss the significance of variances
reconcile actual profit with budgeted profit
Apply leaning curves to estimate time and cost for new products and services
apply various appraisal techniques in evaluating the profitability of capital investments
Course Schedule:
Your prescribed book is: Bhimani, Horngren, Datar and Foster. (Latest). Management and Cost
Accounting. Financial Times Press
Year 2015
Semester 1
Assumed knowledge
Week 1-2
Week 3-4
Purpose of budgets
Approaches and administration of
Prepare operational budgets: sales
budget; production budget; direct labour
budget; factory overheads budget;
selling and administration cost budget;
Prepare departmental budgets; master
budget; cash budget
Fixed and flexible budgets
Budget variance and analysis
Causes of variances and remedies
Journal entries for overhead costs and
Monitoring and controlling performance
Zero base budgeting
Programme planning and budgeting
Activity based budgeting
Alternative to budgeting
Behavioral aspects of budgeting:
budgets vs motivation
Cost assignment
and cost behavior
Text Book
Chapter 14
Page 453 493
Cost assignment Chapter 15
and cost
Page 494 behavior.
High/low method
Week 5-7
Standard costing and variance analysis
Week 8-9
Operating statements
Variances in standard and marginal
costing systems
Working backwards approach to
variance analysis
Direct material mix and yield variances
Direct labor mix and yield variances
Sales mix and quantity variances
Planning and operational variances
Significance and interpretation of
Week 10 Mid Semester Break
Week 11-12
The learning curve theory
Week 13-14
Introduction to the learning curve theory
The learning rate graph and formula
When can the learning curve be used
Types of cost affected by the learning
Application of learning curve theory
Limitations of the learning curve theory
Capital budgeting
Cost behavior
Chapter 16
Cost Assignment Page 527 562
Cost behavior
Product pricing
Setting and updating standards
Performance standard
Budgets and standards compared
Criticism of standard costing
Variance analysis: Cost and sales
Significance of variances
Interpretation of variances
investigation of variances
Standard costing: further variances
The process of investment decision
Post completion audit
Decision making methods:
Payback method
Accounting rate of return method
Net present value method
Internal rate of return method
NPV and IRR compared
Discounted payback
DCF: Additional points
Chapter 17
Page 563 597
No classes
Product costing
Cost behavior
and allocation
Chapter 9
Page 281 284
Chapter 13
Page 409 450
Week 15
Capital budgeting
Chapter 13
Page 409 450
Allowing for inflation
Allowing for taxation – Income Tax, VAT
Mutually exclusive projects with unequal
Asset replacement cycles
Project abandonment
Capital rationing
Non-financial consideration in long-term
Important Dates:
NOTE: The following dates are subject to change at the lecturer’s prerogative. Students will be
notified ahead of time of any changes.
Important Information
13 March 2015 Test 1 Aud 1 and 2
17h00 – 19h00
25 April 2015
Test 2 Aud 1 and 2
11h30 – 14h00
9 May 2015
Test 3 Aud 1 and 2
11h30 – 14h00
Examination see examination timetable
Important: All Seventh Day Adventists students are requested to register themselves with the
Head of Department, - Accounting, Economics and Finance.
Tests 1 and 2 will cover all the work as scheduled up to the day for the test date while Test 3 will
cover the entire course outline
Course Policies
All students will be required to write ONLY two tests. The third test is specifically for those
students who may have missed either test one or two or have failed to qualify for examination
admission. Those who have failed to qualify until with the 3 rd test will be limited to maximum mark
of 40%. No other special tests will be set outside those tests scheduled in terms of this course
Assessment and Evaluation:
Continuous Assessment
General Academic Policies:
It is the student's responsibility to be familiar with and adhere to the Polytechnic’s policies. These
Policies can be found in the Polytechnic Prospectus or online at
Failure to Pay Fees:
A student who fails to pay his/her fees may not be allowed to write the examination and if allowed,
the results will be withheld until all outstanding fees are paid in full.
Important Student Services at PoN
There are a variety of services which you can use at the PoN. These services are to your
advantage – Use them!!! They include the following:
Student Counseling and Career Development - Dean of Students Office.
Writing centre and student academic problems – Centre for Teaching & Learning (CTL)
Campus Health and Wellness Centre (CHWC) - Dean of Student’s office/ PoN Clinic
This course is authorized for use by:
P.N. Maliti
Head of Department
04 February 2015
(To be completed by all students on the course, detached from the course outline and kept
on record in the department)
By inserting my Name, Student Number and Signature overleaf, hereby acknowledge that I have
received the course outline for Cost and Management Accounting 301/310- PMA711s/GMA 711s,
and that I have familiarized myself with its content, in particular the statement about academic
honesty and integrity. I agree to abide by the Policies and arrangements spelt out in this course
Student Number