This course provides information for operational and strategic decision making, planning, control and performance measurement largely in a business context.
Prerequisite / Exemptions
If taken as part of a BSc degree, the following course must be passed before this course may be attempted:
- AC1025 Principles of accounting
- Management accounting and its strategic context
- Introduction and application of full absorption costing
- Process costing and capacity management
- Activity Based Costing (ABC)
- Activity Based Management (ABM)
- Cost volume profit analysis
- Application of cost volume profit analysis
- Relevant information for decision making
- Decision making with constraint and uncertainty
- Theory and practice of pricing
- Long-term decision making, capital budgeting and lifecycle costing
- Strategic Budgeting
- Budgeting and control
- Variance analysis further issues
- Divisional performance management systems
- Transfer pricing and its effect on performance management systems
- Cost management, JIT and environmental accounting
- Strategic performance measurement – the use of non-financial performance measures
- Closing the loop: strategic management accounting
- Summary and suggestions for answering examination questions.
If you complete the course successfully, you should be able to:
- discuss the changing role of management accounting
- critically evaluate the uses of Management Accounting information for strategic decision making in various business contexts
- select, devise and apply different types of cost and revenue analysis and explain their different roles for supporting operational and strategic managerial decisions
- design and prepare budgets and explain their use in planning and control
- design and use variances to support feedback, analysis and control
- identify and discuss different methods of investment appraisal
- discuss various approaches to performance measurement and control in various types of organisations, and devise and evaluate indicators of performance.
Unseen written exam (3 hrs 15, including reading time).
- Drury, C. Management and Cost Accounting. Cengage Learning, 2016. 9th Edition.
Course information sheets
Download the course information sheets from the LSE website.