UCL School of Management

Module Fact Sheet

MSIN0059: Managerial Accounting for Decision Making

Taught by
Elliot Guner
Level
Intermediate
Prerequisites
None; Prior accounting studies are not presumed
Eligibility
2nd, 3rd, 4th year undergraduates from all departments, inc. 2nd year JSPs
Terms
Term 1
Delivery method
2-hour lecture (x 10 weeks) and 1-hour seminar (x 10 weeks)
Assessment
70% final 2-hour examination; 20% group report; 10% individual test
Previous Module Code
MSIN7016A

Course overview

This module provides an understanding of key issues and applied methodologies relating to management accounting frameworks used by managers when faced with making financial decisions in the context of the business environment. The focus is on information for cost management, budgetary control, and short and longer term financial decision making. That information enables managers to plan for and subsequently control operations. It examines the blend of financial analysis and managerial judgment required to make sound decisions. In particular there is an emphasis on issues in overhead cost recovery; contribution costing and CVP analysis; costing issues in the context of a competitive environment, including activity based costing (ABC); relevant costs for decision making; core investment appraisal techniques (ARR, Payback, NPV and IRR); budgetary control, variance analysis, standard costing.

Learning outcomes

Upon successful completion of the module, a student will be able to:

  • Understand the roles of profit, cash, and ‘cost’ in decision making
  • Identify issues in overhead cost recovery and evaluate their impacts on both cost reporting and decision making
  • Understand the nature of and apply the idea of contribution and cost-volume-profit (CVP) analysis
  • Understand the nature of and apply incremental cash flows in decision making
  • Undertake and evaluate investment appraisal decisions, applying accounting rate of return (ARR), payback, net present value (NPV), and internal rate of return (IRR)
  • Apply budgetary control and variance analysis.

Topics covered

  • Full costing: absorption/overhead recovery
  • Contribution costing; CVP analyses
  • Activity Based Costing (ABC);
  • Relevant costs for decision making
  • Capital Investment appraisal
  • Budgeting for control
  • Standard costing
  • Introduction to Management Accounting
  • Full Costing: Absorption
  • Contribution Costing; CVP analyses
  • Activity Based Costing (ABC);
  • Relevant Costs for Decision Making
  • Capital Investment Appraisal 1
  • Capital Investment Appraisal 2
  • Budgeting for Control/Standard Costing
  • Pricing
  • Measuring Divisional Performance

Assessment summary

70% for unseen 2-hour exam in the summer term; 30% for coursework.  Coursework comprises one individual assessment carrying 10% and one group-based (2 members in each team) case study analysis carrying 20%.

Current students should refer to Moodle for specific details of the current year’s assessment.

Essential reading

Management Accounting for Decision Makers with MyAccountingLab access card, 8th edition, by Peter Atrill & Eddie McLaney, 2015, Pearson ISBN-10: 1292072539 • ISBN-13: 9781292072531

Past versions of this module

MSIN0059 18/19

MSIN7016A 17/18

MSIN7016A 16/17

Last updated Friday, 12 July 2019