Management accounting - Introduction
In this module, we will explore the behaviour of the four main types of costs, namely: variable cost, fixed cost, stepped-fixed cost and semi-variable cost. You will also gain an understanding of absorption Costing and activity-based costing, their benefits and limitations.
The module will explore the different capital budgeting techniques available, including: Accounting Rate of Return (ARR), Payback Period (PP), Discounted Payback, Net Present Value (NPV), Profitability Index (PI) and Internal Rate of Return (IRR).
Lastly, you will gain an understanding of the use, benefits and limitations of budgets. A range of budgeting systems are explored, including: Top Down Budgeting, Bottom Up Budgeting, Incremental Budgeting, Zero-Based Budgeting (ZBB), Rolling Budgets and Activity-Based Budgeting.
The learning objectives of this module are:
- To understand the different types of costs
- To gain an understanding of absorption costing and activity-based costing
- To gain an understanding of target costing
- To gain an understanding of break-even analysis
- To explore the different capital budgeting techniques available
- To appreciate the use, benefits and limitations of budgets