Management Accounting

This course provides students with an understanding of the fundamental principles involved in management accounting. Students will learn how to produce useful information in addition to developing a competence in using management information for planning, performance evaluation, cost control and decision making within organizations. 

Business Consultation

Course Structure

Introduction to Management Accounting

  • What information do managers need?

  • Difference between management and financial accounting

  • Framework for planning, decision-making, and control

  • Limitations of management information

Cost Classification

  • What is meant by cost?

  • Direct and indirect costs

  • Accounting for materials, labor, and overheads

  • Cost behavior

Absorbtion & Marginal Costing

  • The concept of contribution

  • Effect of absorption and marginal costing on inventory valuation

  • Profit of loss under absorption and marginal costing

  • Advantages and disadvantages absorption and marginal costing

Activity-Based Costing

  • Modern production costing

  • Difference between activity-based costing and absorption costing

  • Target costing

  • Life cycle costing

Cost-Profit-Volume Analysis

  • Define fixed and variable costs

  • Find the break-even point

  • Calculate the contribution per unit

  • Determine the margin of safety


  • The importance of planning and control in an organization

  • Describe the stages in the budget process

  • Prepare various budgets, including a cash budget

  • Advantages and disadvantages of budgets

Accounting for Control

  • Compare actual and flexible budgets

  • Analysis of variances from the budget

  • Reasons for adverse variances

  • Effective budgetary control

Strategic Management Accounting

  • Competitor and customer analysis

  • Competitive advantage through cost leadership

  • Balanced scorecard

  • Measuring shareholder value

Measuring Performance

  • Advantages and disadvantages of adopting a divisional structure

  • Divisional performance measures

  • Transfer pricing

  • Non-financial measures of performance

Managing Working Capital

  • What is working capital?

  • Managing inventories

  • Managing receivables and payables

  • Managing cash