On successful completion, students will be able to
- differentiate the management accounting and control function from the financial accounting
and the financial management function.
- understand the cost structure and discuss the cost aspects of business operation.
- analyze and apply the tools for viewing and differentiating costs and utilize them to
ameliorate business decision-making.
- discuss how the budgeting process and variance analysis works to implement the
management control function.
Contents
- Management accounting and control function
- Differences between management accounting, and financial accounting
- Cost terms, cost categories, and cost behavior
- Cost allocation
- General and specific cost allocation methods
- Break-even analysis
- Planning and budgeting
Intro
Management accounting is an important function to operate an organization. Managers need to understand this function in order to be able to run an organization efficiently. In most organizations, decisions, actions and human behavior are directly linked to the feature, use and focus of management accounting information. This course is about understanding the preparation and use of information provided by management accounting. Cost accounting as a central part of the management accounting informs the management about the profitability of its core business. The cost and performance measurement serves the internal decision, control and budgeting process.