Contents of the subject

• Role and Functions of Managerial Accounting

• Cost terms, concepts and classifications

• Job-order costing and process costing

• Volume and activity-based cost allocation

• Absorption costing and variable costing

• Cost-Volume-Profit-analysis

Qualification aims of the subject

The aim of the course is to familiarize students with the use of managerial accounting information for internal planning and control purposes. Students should understand the vocabulary and mechanics of cost accounting, the basic issues involved in the design of a cost accounting system, and the role of management accounting in business decisions.

After successfully completing this course, students will be able to:

(ILO 1): Explain how management accounting contributes to financial reporting, how it is different from financial accounting, and how management accounting ideas and practices are relevant to business decisions

(ILO 2): Define and apply cost accounting terminologies.

(ILO 3): Choose and apply suitable cost accounting systems (such as job-order costing, process costing and activity based costing) for different organizations

(ILO 4): Prepare income statements for various reporting purposes and apply cost-volume-profit techniques to support optimal managerial decisions

Applicability of the subject

Prerequisite for advanced courses in business administration and economics, especially for module "Management Accounting and Controlling" and for specialisation in Accounting.

The module is available for students of the following programs: Business Administration, Economics, IBAEX, Wirtschaftsrecht, Wirtschaftsinformatik, Gründung und Nachfolge.

The nature of the examination / requirements for the award of credit points

The assessment is an exam (90 minutes), which consists of several problems in various forms (e.g. multiple choice, open-ended questions or calculations).

Problems requiring a description of managerial accounting tasks and functions. (ILO 1)

Problems requiring stating and applying definitions and concepts. (ILO 2)

Problems containing calculations test the understanding of the given problem statement and the ability to solve it with an adequate method. (ILO 3, ILO 4)

Literature and learning resources

Core:

Drury, C., Cost and Management Accounting, current edition

Garrison, R.H., Noreen, E.W., Brewer, C., Managerial Accounting, current edition     

Additional:

Berry, A., Jarvis, R., Accounting in a business context, current edition

Horngren, Datar, Rajan: Cost Accounting – A Managerial Emphasis, current edition

Teaching and learning forms

Seminar

Participation requirements

Introduction to Financial Accounting