ACCT604 Strategic Managerial Accounting

10 cp
Prerequisites ACCT600 Accounting for Decision-Making
Teaching Organisation 3 hours per week for twelve weeks or equivalent.

Management accounting information plays an important role in planning and controlling organisational activities. Traditionally, management accounting systems have tended to produce primarily financial information for managers. However, with increased competition, the nature of management accounting systems has been extended to encompass both quantitative and qualitative non-financial information to help not just managers but also workers (employee empowerment) to plan and control their operations. The financial aspects of accounting control however continue to be stressed in the unit since they continue to play an important role in organisational control. Various cost concepts such as variable and fixed costs used in cost-volume-profit analysis and flexible budgeting, standard costing and variance analysis, differential costing and time value (cost) of money in capital budgeting decisions will be covered. These cost information systems help managers make various decisions such as pricing and product mix decisions and product and process design decisions. They also help managers monitor and regulate the performance of individual employees, business units and the entire organisation. In addition, more contemporary accounting controls such as activity based costing and management and quality management will be covered.