1. NAME OF COURSE  / MODULE ACCOUNTING FOR PLANNING AND CONTROL
2. COURSE CODE MAC3023
3. NAME(S) OF ACADEMIC STAFF  
4. RATIONALE FOR THE INCLUSION OF THE COURSE/MODULE IN THE PROGRAMME This course provide students with the knowledge of planning, controlling as well as

decision making. It will introduce students with the management accounting tools for

different purposes such as the budgeting, cost analysis, standard setting and pricing. The emphasis is on the concept of relevant information and critical thinking in planning and decision making.

5. SEMESTER & YEAR OFFERED Semester 3 / Year 2
6. TOTAL STUDENT LEARNING TIME (SLT) Face to face:

L T P O
28 23 8

L=lecture ; T=Tutorial; P=Practical; O=Others (Exam)

Total Guided and Independent Learning:

120
7. CREDIT VALUE 120/40 = 3.00 (3 credit); 2+2
8. PREREQUISITE (IF ANY) MAC2013 Cost Accounting
9. OBJECTIVES 1. To enable students to apply standard costing techniques and interpret variances, including planning and operational variances for control purposes.

2. To enable students to apply the concept of relevant costs and revenues in decision-making.

3. To familiarise and provide students with various techniques of operational budgeting and discuss their role in planning, control, and decision-making.

4. To enanble students to apply management accounting information in pricing strategies and bidding decisions.

10. LEARNING OUTCOMES At the end of the course, learners will be able to:

1. Apply standard costing techniques and interpret variances, including planning and operational variances for control purposes. ( LO3 – CTPS 3,C3)

2.  Apply the concept of relevant costs and revenues in decision-making. ( LO3 –

CTPS 3,C3)

3. Prepare various techniques of operational budgeting and discuss their role in planning, control, and decision-making. (LO2 – P3; L07 – LL2)

4.  Apply management accounting information in pricing strategies and bidding decisions (LO3-CTPS 3, C3)

11. TRANSFERABLE SKILLS Student should be able to develop the short term planning, control and decision making skills  through a process of lectures, tutorial and group assignment. It also enhances the communication and teamwork skills.
12. TEACHING-LEARNING AND ASSESSMENT STRATEGY Teaching-learning strategy:

  • The course will be taught through a combination of formal lectures, exercise, group work, using authentic materials, informal activities and various textbooks. Collaborative teamwork will be fosters throughout the course. The use of examination and internal reporting assessment will assess the student’s ability to apply theoretical concept in context.

Assessment strategy:

  • Formative
  • Summative
13. SYNOPSIS This course introduces application of techniques in the analysis of relevant data to provide information for managerial planning and control, and decision-making. The

topics covered include budgeting, standard costing, priving strategies and responsibility accounting.  Transfer pricing issues and behavioural consideration conclude the course.

14. MODE OF DELIVERY Lectures and tutorial (SCL)
15. ASSESSMENT METHODS AND TYPES
Component %
Continuous assessment 50
Final examination 50
Total 100
16. CONTENT OUTLINE OF THE COURSE/MODULE AND SLT PER TOPIC
TOPIC Lecture Tutorial Test/Quiz/Exam Assignment Assessment(Library Search) Self-study Total
Budgeting 2 2 4 8
Budgetary Control 2 2 3 7
Behavioural Issues 2 2 3 7
Standard Costing and Variance Analysis of Prime Costs 2 2 3 7
Standard Costing and Variance Analysis of Overhead Costs 4 4
Relevant Costs and Benefits 4 4 6 14
Pricing Decisions 4 4 6 14
Responsibility Accounting and Performance Measurement 4 4 6 14
Transfer Pricing 4 4 6 14
Continous Test/Quiz/Assessment 5 10 15
FINAL 3 9 100
TOTAL 28 28 8 0 19 37 120
17. REFERENCES Main reference:

1.     Langfield-Smith, K., Thorne, T., Hilton, R. (2012) Management Accounting: Information for Creating and Managing Value, 6th Edition, McGrawHill.

Additional references:

1.     Garrison, R.H., Noreen, E.E., Brewer, P.C., Cheng, N.S., Yuen, C.K.  2012. Managerial Accounting. An Asian Perspective. McGraw Hill.

2.     Drury, C. 2005. Cost and Management Accounting. 6th Edition. Thomson Publishing.

3.     Hongren, C.T., Sundem, G.L. & Stratton, W.O. 2005. Introduction to Managerial     Accounting. 13th Edition. Pearson Education International.

4.     Articles from professional journals.

 

Mapping of the course/module to the Programme Learning Outcomes

TOPIC Contact hours (week) Lesson Learning Outcome (Students are able to…) CLO KI Teaching & Learning Activities Assessment Tasks
Topic 1 : Budgeting

 

4
  • Understand how budgeting process fits into wider strategic planning of an organization
  • Describe the master budget
  • Describe the advantages of budget
  • Prepare the operating budgets and its supporting schedules
LO2

LO3

CTPS1  

  • Lecture
  • Tutorial activity – Exercises and group discussion
  • Feedback on tutorial activity     (individual and group discussion)
  • Quiz 1
Topic 2 : Budgetary Control

 

 

4

  • Distinguish a static budget from a flexible budget
  • Develop a flexible budget
  • Prepare a performance report that combines activity variances and revenue and spending variances
 

LO2

 

 

 

 

 

 

  • Lecture
  • Tutorial activity –Exercises and group   discussion
  • Feedback on tutorial activity (individual and  group discussion)
Topic 3 : Standard Costing and Variances Analysis for Prime Costs

 

4
  • Explain how standard costing can be used to help control costs and manage resources more effectively
  • Develop standard costs for direct material and direct labour
  • Calculate and interpret the direct material price and quantity variances, and the direct labour rate and efficiency variance
  • Understand how to determine the causes of variances, and when to take corrective actions variance
LO3 CTPS3
  • Lecture
  • Tutorial activity –Exercises and group   discussion
  • Feedback  on tutorial activity (individual and group discussion)
  • Quiz 2
Topic 4 : Standard Costing and Variances Analysis for Overhead Costs

 

8
  • Compute the variable overhead flexible-budget variance, the variable overhead efficiency variance, and the variable overhead spending variance
  • Compute the fixed overhead flexible-budget the fixed overhead spending variance, and the fixed overhead production-volume variance
  • Lecture
  • Tutorial activity –Exercises and group   discussion
  • Feedback on tutorial activity (individual and  group discussion)
Topic 5 : Short Term Decision Making Relevant Costs and Benefits

 

8
  • Distinguish relevant from irrelevant information in decision situation
  • Explain the opportunity cost concept and why it is used in decision making
  • Know how to choose which products to produce when there are capacity constraints
  • Discuss factors managers must consider when adding or dropping customers or segments
 

LO3

 

CTPS3

  • Lecture
  • Tutorial activity –Exercises and group discussion
  • Feedback  on tutorial activity (individual and group discussion)

 

Topic 6: Pricing Decisions

 

8
  • Describe the major influence on pricing decisions
  • Calculate prices using value-based, economic-value and cost-price pricing strategies methods
  • Explain how product cost distortions can undermine a firm’s pricing policy
  • Discuss the issues involved in the strategic pricing of new products
  • Analyse relevant information for tactical and long-term product mix decisions
LO2

LO3

CTPS3
  • Lecture
  • Tutorial activity –Exercises and group discussion
  • Feedback  on tutorial activity (individual and group discussion)
Topic 7: Responsibility Accounting and Performance Measurement

 

8
  • Explain the benefits and costs of decentralisation
  • Define and provide examples of responsibility centres: cost centres, revenue centres, profit centres and investment centres
  • Complete financial performace report for responsibility centres taking into account allocated costs, common costs and variances
  • Explain how shareholder value can be measured and used to manage performance
  • Evaluate and calculate economic value added (EVA) and shareholder value added as measure of investment centre
  • Lecture
  • Tutorial activity – Exercises and group discussion
  • Feedback  on tutorial activity (individual and group discussion)
Topic 8: Transfer Pricing

 

8
  • Relate the concept of transfer pricing;
  • Express the appropriate transfer price in decentralized organization
  • Lecture
  • Tutorial activity –Exercises and group discussion
  • Feedback  on tutorial activity (individual and group discussion)
Topic 9 : Behavioural Issues

 

4
  • Discuss motivational, behavioural and
  • Ethical in planning and decision making from Islamic perspectives
  • Discuss the behavioral consequences of budgets: participative budgeting, budgetary slacks and budget difficulty
  • Explain issues in setting prices
  • Lecture
  • Tutorial activity –Exercises and group discussion