Course for international guest/part time students

Faculty

Faculty of Economics

Organization

GTK Department of Finance and Accounting

Code

GTI24AN405EN

Title

Management Accounting

Usual semester

Spring

Published semester

2024/25/2

ECTS

6

Language

en

Learning outcomes

Course objectives and description The main aims of this module are to appreciate: the nature, purpose of accounting information for management decisions; different cost behaviours and costing techniques; the cost volume profit analysis and its relationship with costing and pricing decision-making; the operational and capital budgetary process in an international context and its advisory role through the process of variance analysis; the best international accounting practices both at the functional, planning and operational stages. Structure of the course: 12 lecture sessions, 8 seminar sessions, 3 “video” lectures

Course content

Date / Time / Location Topics Tutor Lectures 1-2 Introduction to Management Accounting Introduction to Cost Terms and Concepts Manufacturing accounts (revision) Cost objects Direct and indirect costs / Period and product costs / Fixed and variable costs / Relevant and irrelevant costs / Avoidable and unavoidable costs / Sunk costs / Incremental and marginal costsL Lecture 3-4 Accounting for direct costs Accounting treatment of various labour cost items Materials recording procedure Issues relating to accounting for materials Just-in-time systems / Materials-requirement-planning Accounting for indirect costs Assignment of direct and indirect costs Plant-wide overhead rates / Two-stage allocation process Budgeted overhead rates / Under and over recovery of o/h Non-manufacturing overheads Inter-service department reallocation BZ Lecture 5-6 Variable and absorption costing system Variable costing versus absorption costing Arguments supporting variable and absorption costing Reconciliation btw variable and absorption costing BZ Lecture 7-8 Cost-volume-profit analysis Linear and curvilinear CVP relationships Profit/volume ration, relevant range, margin of safety Break-even chart Cost estimation and behavior Estimating cost function Cost estimation methods: engineering, inspection of the accounts, graphical, high-low, least-square SzL Video Lecture 01 First mid-term preparation SzL Lecture 9-10 Job-order costing system Control accounts Recording the purchase and issue of raw materials Accounting procedure for labour cost Accounting procedure for manufacturing and non-manufacturing overheads Accounting procedures for jobs completed and products sold Interlocking accounting / contract costing BZ Lecture 11-12 Process costing flow of production and costs process costing when all output is fully complete / normal and abnormal losses Process costing with ending work in progress partially complete beginning and ending work in progress of completed units partially completed units and losses in process BZ Lecture 13-14 Join- and by product costing joint products and by-products methods of allocating joints costs irrelevance of joint cost allocations for decision making accounting for by-products Mid-term preparation BZ Video Lecture 02 Second mid-term preparation BZ Lecture 15-16 Short-term decision making Relevant costs and revenues Importance of non-financial factors Pricing decisions Lon-term orders Product mix decisions Equipment replacement decisions Outsourcing and make-or-buy decisions Discontinuation decisions SzL Lecture 17-18 The budgeting process Strategic planning, budgeting and control process Multiple functions of budget The budget period / the budgeting process Standard costing and variance analysis I operating a standard costing system establishing cost standards / purpose of standard costing variance analysis for a variable costing system reconciliation of budget profit and actual profit SzL Lecture 19-20 Standard costing and variance analysis II variance analysis for standard absorption costing system investigating variances Practical questions for variance analysis SzL Video Lecture 03 Third mid-term preparation SzL

Assessment method

The general examination and assessment requirements of the courses offered by the Faculty of Economics are available at: https://gtk.elte.hu/en/erasmus/general

Bibliography

Compulsory reading Colin Drury: Management and Cost Accounting, 10th Edition, 2018, Cengage Recommended reading BPP Learning Media: ACCA Management Accounting, Interactive Text, 2019 Edward J. Vanderbeck: Principles of Cost Accounting, International Edition, 17th Edition, 2016,Cengage

Programmes of the course