NANYANG TECHNOLOGICAL UNIVERSITY
NANYANG BUSINESS SCHOOL
AD2101 Management Accounting
A)
Course Description and Aims
This course covers the strategic nature of management accounting and the relevance of accounting
information for today’s competitive business environment. Emphasis is placed on the provision of accounting
information for planning, control and decision making; and the application of accounting information for
supporting tactical objectives and strategic missions of organizations. The course is divided into four major
parts. The first part is introductory to cost management and focuses on fundamental cost concepts and how
costs can be measured and accumulated under different costing systems. The second part covers the
practices in cost management and the use of essential accounting information in managerial planning,
control and decision making. The third part exposes students to performance evaluation of business
segments and sustainability of organizations in a globally competitive environment. The final part of the
course links theories to practice in management accounting by providing students with real life scenarios to
integrate knowledge and to promote skills in critical thinking and decision making.
The course aims to equip students with analytical skills for problem solving and managerial skills for decision
making and business presentation. After the completion of this course, students should be equipped with a
strong conceptual and technical knowledge in accounting and costing. Students should understand and
appreciate how accounting and costing information support organizational planning, decision making and
control. In particular, students should be able to apply their knowledge and skills to influence decisions that
create value for organizational stakeholders and improve corporate social responsibility.
B)
Intended Learning Outcomes (ILO)
By the end of this course, students should be able to:
ILO Description
1
Discuss how management accounting fits into an organizational structure to support managerial
and strategic decisions
2
Explain various cost concepts, cost behaviors and costing systems, and discuss how different
views can affect approaches towards decision-making
3
Differentiate and compute cost of products or services using different costing systems
4
Discuss the strategic roles and objectives of cost allocation and apply various cost allocation
methods
5
Record and present costing information in financial statements
6
Discuss the importance of strategy, risk and behavioral issues in budgeting process
7
Prepare and present master and flexible budgets and supporting schedules
8
Perform variance analysis and discuss the impacts of variances on business operation
9
Perform CVP analysis and discuss the effect of different cost structures on pricing decisions
10
Perform differential analysis and discuss the constraints, risk and legal issues relating to
managerial and strategic decisions
11
Discuss organizational architecture and measure performance of managers and business units
using financial and non-financial measurements
12
Apply the general transfer pricing rule and discuss the economic consequences and behavioral
issues of transfer pricing
13
Discuss the relationships and implications of cost reduction, value chain, product life cycle and
total quality management on business operation
14
Discuss corporate sustainability practices, and the implications and challenges in recognizing and
measuring economic, environment and social impacts
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