AC106-Introduction to Management Accounting

Module Provider: Business Informatics, Systems and Accounting
Number of credits: 10 [5 ECTS credits]
Terms in which taught: Spring term module
Non-modular pre-requisites:
Modules excluded: AC107 Management Information
Current from: 2017/8

Module Convenor: Ms Sue Blackett


Type of module:

Summary module description:

This module is delivered at University of Reading and University of Reading Malaysia. 

This module provides an introduction to management accounting by studying costing classifications and their applications.


This module aims to provide students with an understanding of the techniques, principles and underlying concepts relating management accounting, in particular to the analysis and treatment of costs. 

Assessable learning outcomes:

By the end of the module it is expected that students will be able to:

1. Explain the basic role of management accounting in providing information to managers for decision making, planning and control.

2. Explain basic concepts and processes to determine product and service costs;

    i) Identify direct and indirect costs for cost units.

    ii) Understand cost behaviour and cost classification to assistplanning and decision- making.

3. Explain the concept of marginal costing, produce profit statements, calculate contribution and produce solutions to short term problems of single limited resource.

4. Explain the concept of absorption costing, produce profit statements and derive the overhead rate through allocation, apportionment and absorption. 

5. Reconcile the difference in profits made using marginal and absorption costing.

6. Calculate mark-ups an d margins.

7. Organise and present information clearly, succinctly and in the required format under timed conditions.

Additional outcomes:

  • The module also aims to encourage the development of oral communication skills and the students’ effectiveness in group situations.  

  • Structured activities are designed to develop independent and,  reflective learning ,together with adaptive and collaborative learning.  

  • Students are encouraged to develop additional IT skills through use of relevant web resources and electronic communication techniques, including Blackboard. 

Outline content:

  • The role and nature of management accounting; 

  • Cost classification and behaviour, direct and indirect costing, cost behaviour patterns – variable, fixed and semi-variable costs and their estimation. 

  • Cost assignment and full (absorption) costing; 

  • Marginal costing and contribution calculations 

  • Cost- plus pricing decisions 

  • Mark up and margin calculations 


Basic bibliography: 

  • McLaney, E. and Atrill, P. (2018) Accounting and Finance An Introduction, 9th edn. Harlow:Pearson 

  • Atrill, P. and McLaney, E. (2018) Management Accounting for Decision Makers, 9th edn. Harlow:Pearson 

Global context:

Collaborative working and appreciation of differing viewpoints. 

Brief description of teaching and learning methods:

A range of teaching and learning methods will be employed. The focus will be on lectures, group work in seminars and independent supported learning. Lectures will be used for the exposition of key concepts, principles and techniques associated with the discipline. Seminars will focus on question practice through individual and/or group working

Contact hours:
  Autumn Spring Summer
Lectures 14
Seminars 8
Guided independent study:      
    Exam revision/preparation 37 20
    Preparation for seminars 7
    Reflection 14
Total hours by term 0 80 20
Total hours for module 100

Summative Assessment Methods:
Method Percentage
Written exam 100

Summative assessment- Examinations:

One 1.5 hour closed book unseen written exam in the Summer term.

Summative assessment- Coursework and in-class tests:

Formative assessment methods:

Independant study activites with solutions are provided after lectures. Seminar material consists of exam standard questions where students can assess their learning progress and prepare for the summative assessment.. Past final and mock exam papers will also be provided towards the end of the course for revision purposes. 

Penalties for late submission:

The University policy statement on penalties for late submission can be found at: You are strongly advised to ensure that coursework is submitted by the relevant deadline.:

Assessment requirements for a pass:
A minimum mark of 40% is required for a University pass.

Reassessment arrangements:

Reassessment is through exam only in August of the same year.

Additional Costs (specified where applicable):

Required Text Book- £45

Calculator: £15 (Casio FX-83GTX or Casio FX-85GTX)

Last updated: 28 July 2020


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