CTRL 301

2 lecture hours
2 exercise hours

5  ECTS credits

Management Accounting I




    Success in any organization, no matter what size or type of organization, requires the use of managerial accounting concepts and practices. Managerial accounting provides key data for managers to make decisions related to planning, controlling, organizing, directing and motivating. It allows managers to understand cost behavior; determine costs of various objects; prepare budgets; evaluate performances; and assess projects, while taking into consideration various ethical, motivational, and behavioral issues.


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    a-      Knowledge & Understanding


    a.1 Describe how cost accounting supports management accounting and financial accounting.

    a.2 Describe the set of business functions in the value chain.

    a.3 State how management accounting aids in managers planning and control & strategic decisions.

    a.4 Describe the different cost classifications.

    a.5 Identify the different types of companies; service, merchandizing and manufacturing.

    a.6 Describe the three categories of inventories found in a manufacturing company.

    a.7 Describe the preparation of both the variable costing and absorption costing throughput income statements.

    a.8 Define the two assumptions frequently used in cost-behavior estimation.

    a.9 Describe cost estimation using the Account Analysis method& the High-Low method.

    a.10 Recognize the allocation of support-department costs using the direct method, Step-down and the reciprocal methods.

    a.11 Explain how different cost drivers can be used to illustrate interchangeable service benefits between support-departments.

    a.12 Describe how broad averaging under-costs and over-costs products or services.

    a.13 Explain the difference between a cost pool, cost driver and cost object.

    a.14 Explain overhead allocation using the traditional costing overhead allocation method.

    a.15 Describe how Activity-Based Costing (ABC) can be used for overhead allocation.


    b-      Professional & Practical skills


    b.1 Use the accounting information in decision making process.

    b.2 Fit each business function to its subsequent value chain activity.

    b.3 Compute the total manufacturing costs and the cost per unit.

    b.4 Prepare the income statement and the schedule of cost of goods manufactured.

    b.5 Calculate total prime costs and total conversion costs.

    b.6 Construct a variable, absorption &throughput costing income statement.

    b.7 Use the Account Analysis & High- Low method to construct a cost estimation function for any company.

    b.8 Use the Direct method , the Step-Down method & the reciprocal method to allocate support-department costs for any company.

    b.9 Use the traditional overhead allocation method to allocate overhead costs to cost objects in any company.

    b.10 Compute the total product-cost using the traditional overhead allocation method

    b.11 Develop various cost drivers to be used for allocating different cost pools using Activity-Based Costing (ABC).

    b.12 Use Activity-Based Costing (ABC) to allocate overhead costs to cost objects in any company.

    b.13 Compute the total product-cost using Activity-Based Costing (ABC).




    c-      Intellectual skills


    c.1 Compare between management accounting and financial accounting.

    c.2 Compare between the various business functions constituting a value chain.

    c.3 Compare cost tracing concept to cost allocation, variable and fixed costs & inventorial and period costs..

    c.4 Evaluate the differences between service, merchandizing and manufacturing companies.

    c.5 Compare inventories in a manufacturing company to inventories in a merchandizing company& the three main categories of inventory in a manufacturing company.

    c.6 Recognize the differences between variable costing income statement and absorption costing income statement & throughput income statement.

    c.7 Compare between gross margin and contribution margin.

    c.8 Examie how computing the total contribution margin of any manufacturing company can better serve decision making processes.

    c.9 Show how the difference between variable costs behavior and fixed costs behavior affects the cost estimation function developed using the Account Analysis method.

    c.10 Compare between cost estimation using the Account Analysis method and the High-Low method.

    c.11 Assess the differences between the Direct and Step-Down & the Reciprocal methods of allocating support-departments costs.

    c.12 Compare between a cost pool, cost driver and cost object.

    c.13 Compare the effect of using traditional overhead allocation method on overhead costs allocated to cost objects.

    c.14 Show the differences between the traditional method of overhead allocation and Activity-Based Costing (ABC).

    c.15 Compare between product-cost computed using the traditional overhead allocation method and product-cost computed using Activity-Based Costing (ABC).

    d-      General & Transferable skills


    d.1 Analyze complex situations through data gathering.

    d.2 Demonstrate critical thinking, problem- solving & decision- making abilities.

    d.3 Retrieve & evaluate information from different sources to improve professional competencies

    d.4 Emphasizing on managerial uses of cost information.

          d.5 Revealing an excellent balance in integrating modern topics with existing context.
















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