Understand the process of company account preparation using accruals and prepayments; explain the influence and importance of accounting standards and other legislation on the production of published financial statements; examine costing systems, absorption costing and overheads, and the potential benefits of activity based costing; understand the use of marginal costing for short term decision making; and recognise the utility of break even charts and profit volume graphs.

Module Description

This module aims to:

Introduce the concepts and techniques relevant to an understanding of both financial and management accounting; and
Develop the ability to apply those concepts and techniques.

Module Content

Users of accounting statements
Functions of financial and management accounting
Preparation of the main financial statements
The application of the accruals concept, matching expenditure to income, depreciation, provisions
An introduction to management accounting and the role of the management accountant
Analysis of how cost behaviour patterns can be used for decision-making purposes
Understanding of absorption costing and accounting for overheads, principles of Activity Based Costing
Break-even charts, profit volume graphs break-even point, the margin of safety and the contribution/sales ratio

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