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Module Catalogue

IB232-15 Management Accounting for Decision Making and Control

Department
Warwick Business School
Level
Undergraduate Level 2
Module leader
Angela Lorenz
Credit value
15
Module duration
10 weeks
Assessment
Multiple
Study location
University of Warwick main campus, Coventry

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Introductory description

This is an elective module available for WBS and non-WBS students.

  1. The module will build on core concepts introduced in IB116 Foundations of Management Accounting and will further students’ understanding of how accounting is used within organisations for the planning, control and evaluation of activity with a special focus on the manager’s role.
  2. The module will cover technical issues in cost management and performance measurement systems, and wider issues concerning the role of management accounting in shaping management structures and decisions in manufacturing and service contexts. The module is also relevant for profit, not-for-profit, public and private sector organisations. It will draw on recent research to explain how accounting systems are designed and function in different organisational and social contexts.
  3. The module aims to develop both a technical and critical appreciation of management accounting and an understanding of its strengths and limitations. A key emphasis will be on application, for example, the intelligent use of the information available to managers to aid their decisions and to evaluate the performance of business units and individuals within them.

Module web page

Module aims

  1. The module will build on core concepts introduced in IB116 Foundations of Management Accounting and will further students’ understanding of how accounting is used within organisations for the planning, control and evaluation of activity with a special focus on the manager’s role.
  2. The module will cover technical issues in cost management and performance measurement systems, and wider issues concerning the role of management accounting in shaping management structures and decisions in manufacturing and service contexts. The module is also relevant for profit, not-for-profit, public and private sector organisations. It will draw on recent research to explain how accounting systems are designed and function in different organisational and social contexts.
  3. The module aims to develop both a technical and critical appreciation of management accounting and an understanding of its strengths and limitations. A key emphasis will be on application, for example, the intelligent use of the information available to managers to aid their decisions and to evaluate the performance of business units and individuals within them.

Outline syllabus

This is an indicative module outline only to give an indication of the sort of topics that may be covered. Actual sessions held may differ.

Short and long term decision making.
Organisational Control.
Performance Management.
Management Accounting and the modern business environment.

Learning outcomes

By the end of the module, students should be able to:

  • Understand the technical and conceptual issues of costing and management control systems and their effect on behaviour.
  • Explain the alternative approaches to investment appraisal and its practical applications.
  • Understand the need for a tailored cost management approaches for different contexts.
  • Explain the theory of optimal transfer pricing, the behavioural implications of alternative transfer pricing systems and practical applications.
  • Understand the need for a greater external focus in management accounting and the roles of strategic management accounting.
  • Understand the problems of divisional performance measurement and management and the need for balanced performance measurement systems.
  • Critically evaluate and interpret management accounting information and its relevance to management decisions.
  • Develop and demonstrate analytical, and problem solving skills.
  • Understand the relationship between theoretical work in management accounting and management accounting practice.
  • Appreciate the cultural and organisational environment and its influences on management accounting theory and practice.

Indicative reading list

Required (Core) Text:
Drury, C., (2021), Management and Cost Accounting (11th Edition), Cengage Learning, Hampshire.
Other Useful Texts:
Drury, C. (2021) Management Accounting for Business (11th Edition), Thomson Business Press, London.
Bhimani, A., Horngren, C.T., Datar, S. M. and Rajan, M (2015) Management and Cost Accounting (6th edition), Prentice Hall, London.
Seal, W., Garrison, R. H. and Noreen E. W. (2006) Management Accounting, McGraw-Hill, Berkshire.
Bhimani, A. (2006) Contemporary Issues in Management Accounting, Oxford University Press, Oxford.
Hopper, T., Northcott, D. and Scapens, R. (2007) Issues in Management Accounting, Prentice Hall, London.
Chapman, C. S. (2005) Controlling Strategy: Management, Accounting and Performance Measurement, Oxford University Press, Oxford.
Grey, S. J., Salter, S. B. and Radebaugh, L. H. (2001) Global Accounting and Control: A Managerial Emphasis, Wiley, New York.
Current research may also be found in such journals as Management Accounting Research (MAR, UK); Journal of Management Accounting Research (JMAR, US); Journal of Cost Management (JCM, US); Accounting Organisations and Society (AOS); Critical Perspectives in Accounting (CPA); Harvard Business Review (HBR), Information and Organization (IO) and Accounting Auditing and Accountability Journal (AAAJ). Accounting Historians Journal (AHJ), Practitioner's articles may also be found in the CIMA journal Financial Management and in the US journal Management Accounting.

Subject specific skills

Demonstrate technical skills related to the preparation and presentation of management accounting information.
Apply management accounting concepts and practices to analyse business problems and make recommendations.
Demonstrate enhanced competency in the use of spreadsheets.
Prepare and present professional reports to recommend courses of action.

Transferable skills

Develop and demonstrate written communication skills.
Develop application of electronic calculation techniques.
Develop and demonstrate group work skills, oral communication and presentation skills.

Study time

Type Required
Lectures 10 sessions of 2 hours (13%)
Seminars 9 sessions of 1 hour (6%)
Private study 48 hours (32%)
Assessment 73 hours (49%)
Total 150 hours

Private study description

Directed reading; assessment & examination preparation; private study.

Costs

No further costs have been identified for this module.

You do not need to pass all assessment components to pass the module.

Assessment group D6
Weighting Study time Eligible for self-certification
Group Presentation (15 CATS) 10% 8 hours No

Tutor assessed student presentations.
In-person Examination 90% 65 hours No
  • Answerbook Green (8 page)
  • Students may use a calculator
Assessment group R1
Weighting Study time Eligible for self-certification
In-person Examination - Resit 100% No

Exam.

  • Answerbook Green (8 page)
Feedback on assessment

Feedback via my.wbs.

Past exam papers for IB232

Pre-requisites

Management students will also be required to take a bridging module.

To take this module, you must have passed:

Post-requisite modules

If you pass this module, you can take:

  • IB373-15 Advances in Management Accounting

Courses

This module is Core for:

  • Year 2 of UIBA-N400 Undergraduate Accounting and Finance
  • Year 3 of UIBA-N403 Undergraduate Accounting and Finance (with Foundation Year)

This module is Optional for:

  • UIBA-N20B BSc in Management
    • Year 2 of N20B Management
    • Year 2 of N20B Management
    • Year 2 of N23K Management with Accounting
    • Year 2 of N234 Management with Digital Business
    • Year 2 of N235 Management with Entrepreneurship
    • Year 2 of N232 Management with Finance
    • Year 2 of N252 Management with Marketing
    • Year 2 of N23L Management with Strategy and Organisation
  • Year 3 of UCSA-I1N1 Undergraduate Computer Science with Business Studies
  • Year 4 of UCSA-I1NA Undergraduate Computer Science with Business Studies (with Intercalated Year)
  • Year 1 of UIOA-EEU Undergraduate EU Exchange
  • Year 4 of UGEA-RN21 Undergraduate German and Business Studies
  • UIPA-L8N1 Undergraduate Global Sustainable Development and Business
    • Year 2 of L8N1 Global Sustainable Development and Business Studies
    • Year 3 of L8N1 Global Sustainable Development and Business Studies
  • UIPA-L8N2 Undergraduate Global Sustainable Development and Business Studies (with Intercalated Year)
    • Year 2 of L8N2 Global Sustainable Development and Business Studies (with Intercalated Year)
    • Year 4 of L8N2 Global Sustainable Development and Business Studies (with Intercalated Year)
  • Year 2 of UIBA-N1RA Undergraduate International Business with French
  • Year 2 of UIBA-N1RB Undergraduate International Business with German
  • Year 2 of UIBA-N1RC Undergraduate International Business with Italian
  • Year 2 of UIBA-N1RD Undergraduate International Business with Spanish
  • UIBA-N20F Undergraduate International Management
    • Year 2 of N20F International Management
    • Year 2 of N20F International Management
    • Year 2 of N20S International Management (with Accounting)
    • Year 2 of N20T International Management (with Chinese)
    • Year 2 of N20P International Management (with Entrepreneurship)
    • Year 2 of N20M International Management (with Finance)
    • Year 2 of N20U International Management (with French)
    • Year 2 of N20L International Management (with Marketing)
    • Year 2 of N20V International Management (with Spanish)
    • Year 2 of N20W International Management (with Strategy and Organisation)
    • Year 2 of N20N International Management with Digital Business
    • Year 2 of N20E Management (with Foundation Year)
    • Year 2 of N234 Management with Digital Business
  • Year 2 of UIBA-MN3B Undergraduate Law and Business Studies
  • UIBA-N20E Undergraduate Management (with Foundation Year)
    • Year 3 of N20E Management (with Foundation Year)
    • Year 3 of N23N Management with Accounting (with Foundation Year and Placement Year)
    • Year 3 of N23M Management with Accounting (with Foundation Year)
    • Year 3 of N23E Management with Digital Business (with Foundation Year)
    • Year 3 of N23F Management with Entrepreneurship (with Foundation Year)
    • Year 3 of N23D Management with Finance (with Foundation Year)
    • Year 3 of N252 Management with Marketing
    • Year 3 of N254 Management with Marketing (with Foundation Year)
    • Year 3 of N23P Management with Strategy and Organisation (with Foundation Year)
  • Year 3 of UMAA-G1N4 Undergraduate Mathematics with Business Studies
  • Year 4 of UMAA-G1N5 Undergraduate Mathematics with Business Studies (with Intercalated Year)
  • UIOA-EOS Undergraduate Overseas Exchange
    • Year 1 of UEOS Undergraduate Overseas Exchange
    • Year 1 of UEOS Undergraduate Overseas Exchange
  • Year 4 of UPXA-F3ND Undergraduate Physics and Business Studies (with Intercalated Year)
  • Year 3 of UPXA-F3N2 Undergraduate Physics with Business Studies
  • Year 1 of UIOA-EUS Undergraduate USA Exchange