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: 2019/0

Module Convenor: Ms Sue Blackett


Type of module:

Summary module description:

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

This module is delivered at University of Reading, University of Reading Malaysia and Beijing Institute of Technology.


This module aims to provide students with an understanding of the techniques, principles and underlying concepts relating 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 classification for planning and decision-making based on cost behaviour.

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 profits made under marginal and absorption costing.

6. Calculate mark-ups and 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 learning, including reflective, 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 fixed costs and their estimation.

• Cost assignment and full (absorption) costing;

• Marginal costing and contribution calculations

• Cost plus pricing decisions

• Mark up and margin calculations


Brief description of teaching and learning methods:

Lectures will be used for the exposition of the main concepts, principles and techniques associated with the discipline. Seminars will focus on numerical practice.

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

Summative assessment- Coursework and in-class tests:

Formative assessment methods:

Homework questions with solutions are provided after every lecture and seminar material consists of exam standard questions. Past papers and mock exam are also provided.

Penalties for late submission:
The Module Convener will apply the following penalties for work submitted late:

  • where the piece of work is submitted after the original deadline (or any formally agreed extension to the deadline): 10% of the total marks available for that piece of work will be deducted from the mark for each working day[1] (or part thereof) following the deadline up to a total of five working days;
  • where the piece of work is submitted more than five working days after the original deadline (or any formally agreed extension to the deadline): a mark of zero will be recorded.

  • 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. You should note that it is advisable to submit work in an unfinished state rather than to fail to submit any work.

    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 Books: Atrill and McLaney (2018) Accounting and Finance: An introduction. 9th ed.- £45

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

    Last updated: 23 July 2019


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