Applied Management Accounting

Module Code






SCQF Level


Credit value


Module Co-ordinator   

Dr Colin Dey


Dr Colin Dey, Mr Chris Coles


40% (2x20%) Class Tests, 60% Examination

Module introduction, aim and objectives

The role of management accounting is to measure, analyse and report information that is required for planning, control and decision making within the business. This module provides the essential development of management accounting concepts into a practical understanding of business cost behaviour.

This module builds on the foundations laid in the introductory Accounting course (ACC9A2), and focuses on the issues that arise when the basic theories of management accounting are applied to business data. We examine techniques like variance analysis, target costing, regression modelling of indirect costs and linear programming with the intention of understanding why they are used, as well as how they work.

Learning outcomes and skills developed

Become aware of the uses and limitations of mathematical and statistical modeling techniques in management accounting

  • Examine models of the volume-revenue relationship.
  • Investigate the use of linear programming for optimizing product mix decisions
  • Apply regression analysis to further the understanding of cost behaviour
  • Survey some of the problems identified with cost allocation
  • Compare alternative approaches to stock planning and control
  • Gain an appreciation of the problems associated with investment in new technology
  • Explore the limitations of cost based pricing models
  • Appreciate the role of behavioural and organizational factors in accounting within large enterprises
  • Understand the wider importance of the basic standard costing and variance analysis framework
  • Apply more advanced variance analysis models

Transferrable skills

This course provides a useful medium for the development of an extended range of transferable skills including

  • Communication
  • Time management and inter-personal skills
  • Develop numeracy, problem solving, evaluation of data, analytical and logical thinking and interpretation of statistical information

Introductory Reading

The prescribed text for this module is

Drury, C. (2012) Management & Cost Accounting 8th Ed (Cengage)


This module information is representative of what is included in the module in a given year. Details of actual reading, lectures and coursework may vary year to year and will be available at the beginning of the semester.

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