UNIVERSITY OF GHANA

(All rights reserved)

DEPARTMENT OF ACCOUNTING
UNIVERSITY OF GHANA BUSINESS SCHOOL

SECOND SEMESTER, 2020/2021 ACADEMIC YEAR

COURSE SYLLABUS

ACCT 404: MANAGEMENT ACCOUNTING

CREDITS: THREE (3)

Lecture Period:
Main campus: Monday, 09:30 – 11:20 GMT (Grp 1) Venue: Virtual classroom Grp1-Main
Wednesday, 11:30 – 13:20 GMT
Monday, 11:30 – 13:20 GMT (Grp 2) Virtual classroom Grp2-Main
Wednesday, 13:30 – 15:20 GMT
City campus: Tuesday, 18:30 – 20:20 GMT (Grp 1) Virtual classroom Grp1-City
Thursday, 18:30 – 20:20 GMT
Tuesday, 16:30 – 18:20 GMT (Grp 2) Virtual classroom Grp2-City
Thursday, 16:30 – 18:20 GMT

Course site: ACCT 404 UG SAKAI LMS (Main) and ACCT 404 UG SAKAI LMS (City)

Prerequisites: ACCT 403 – Cost Accounting

Course instructor
Name: Teddy Ossei Kwakye, PhD
Office: Main Campus, UGBS, Ground Floor, Room G7
Office hours: Book an appointment.
E-mail: tokwakye@ug.edu.gh

Course Description
This course builds on the knowledge gained in ACCT 403 – Cost Accounting. This course is concerned
with how management can use cost information to plan, control and make decisions regarding using
an organisation’s resources. It discusses what kind of information is needed, where this information can
be obtained, and how managers can use the information to plan operations, control activities and make
decisions. The scope of ACCT 404: Management Accounting includes: Short-term decision techniques;
Budgeting and budgetary control; Standard costing and variance analysis; Investment Appraisal,
Performance management systems, and transfer pricing. Current and specialised costing techniques
are also discussed to provide students with the most recent information on how businesses use the
cost information.

Course Objectives
The main aim of this course is to equip students with the skills required to use cost accounting
information generated to perform management functions such as forecasting and budgeting, measuring
the performance of business activities and propose actions intended to maintain or improve the
situation. The course will also help students use the relevant cost analysis tool to take short-term and
long-term decisions. It will further expose students to current and emerging concepts, practices and
developments in cost and management accounting and other specialised cost accounting techniques.

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Learning Outcomes
On successful completion of this course, students should be able to:
1. Apply the techniques of differential and relevant cost analysis to determine whether to lease or sell,
discontinue an unprofitable segment, make or buy, or accept business at a special price.
2. Explain the process and importance of budgeting and budgetary control and understand the basic
principles of strategic planning.
3. Prepare the master budget, i.e., the operating budgets and cash budget and explain why these
budgets are important in the master budgeting process.
4. Describe a standard costing system and its benefits to companies, and compute standard costs,
price and quantity variances for direct materials, direct labour, variable and fixed overhead costs.
5. Describe responsibility accounting, explain the different types of responsibility centres, understand
the need for an adequate performance measurement system, and evaluate the performance of
responsibility centres using both financial and non-financial measures.
6. Explain target costing, life cycle costing and throughput accounting techniques and determine the
cost of a product or service using these techniques.

Course Delivery
This course is delivered using the blended learning approach to teaching and learning over six (6)
weeks utilising the modular system. It combines teaching and learning activities using ICT, reducing
scheduled face-to-face lecture and tutorial time significantly. Although the course is primarily delivered
online within a two (2) hour virtual classroom, it will also include at least a 40 per cent face-to-face
lecture period. The University of Ghana web-based learning management system, the SAKAI LMS, is
the primary online course delivery medium. The course instructor will inform students in advance of any
face-to-face lecture. The SAKAI LMS will be introduced to students during the first lecture of the course.

Both asynchronous and synchronous online lectures will be organised as scheduled on the timetable
for the course. The relevant course resources – lecture videos, lecture slides, assignments, and other
materials – are provided on the ACCT 404 SAKAI LMS Course Site (Main campus) and ACCT 404
SAKAI LMS Course Site (City campus). Students will engage in virtual group discussions that will
primarily occur within the Forum and Commons tools on the course site. Students will form discussion
groups of 5 – 7 members. Each group member must participate in online conference sessions with
others and actively participate in assigned group activities. Students must use their UG e-mail as the
primary medium to respond to the course instructor and their coursemates about assigned topics and
activities. Students must read the recommended textbooks and all relevant materials for every lesson
before class meetings to understand the issues discussed and contribute effectively.

Plagiarism Policy
Plagiarism in any form is unacceptable and shall be treated as a severe offence. As stipulated in the
University of Ghana’s plagiarism policy, appropriate sanctions will be applied when students are found
to have violated the UG Plagiarism Policy. All students are to familiarise themselves with the contents
of the policy. Moreover, when working in groups, it is the moral and social responsibility to ensure that
group members do not plagiarise others work.

Assessment and Grading

Assessment
 Quizzes – 15 per cent
There will be quizzes, usually after each lesson. The quizzes focus on the textbook, and other
reading materials, requiring students to apply knowledge and concepts learned in class to solve
strategic management issues from management accounting perspectives. The quizzes will be
administered on the SAKAI LMS course site using the Test & Quizzes tool.

 Discussions and class participation – 15 per cent

The Forums and Commons tool of the SAKAI LMS will enable students and the course instructor
to interact with each other on the subject matter. Students are expected to post their views and
responses to cases and issues discussed on these platforms. Regular class attendance and
participation also contribute to this part of the final assessment.

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 Project work – 20 per cent
Students will be assigned an end-of-semester project work during the semester. Details and
instructions of this project work, including the date for submission, will be specified on the SAKAI
LMS’s Assignment tool.

 End of Semester Final Examination – 50 per cent

The final examination comprises a comprehensive written examination paper. This exam will be a
sit-in exam and written within the university-wide end of the semester examination period.

Grading
Refer to the University of Ghana University Regulations Handbook, Section 9.20 (page 45-46).

Reading List
Required Textbook
 Drury C. (2018), Management and Cost Accounting, 10th Edition, Cengage Learning EMEA: UK
 S. Andoh-Kwofie (2016), Cost and Management Accounting. Gpak Publishing House, Accra.

Recommended/Supplementary Textbooks
 Langfield-Smith K., Thorne H., Smith D., and Hilton R. (2018). Management Accounting:
Information for Managing and Creating Value, 8th Edition. McGraw-Hill: Australia.
 W. Coffie (2018), Cost & Management Accounting Questions and Answers Bank, 2nd Edition,
Digibooks, Accra

 ICAG Study Manual: Management Accounting (Current Edition).

Course Content
A. Short-term decision techniques
a. Relevant cost analysis
b. Common management short-term decisions

B. Budgeting and budgetary control

a. Nature and purpose of budgeting and budgetary control
b. Budget preparation
c. Budgetary control and reporting

C. Standard costing and variance analysis

a. Standard costing system and flexible budgets
b. Variance calculations and analysis
c. Reconciliation of budgeted and actual profit

D. Capital budgeting and investment appraisal

a. Purpose of investments appraisal
b. Investment appraisal techniques
c. Inflation and taxation in investment appraisal
d. Risk and uncertainty in investment appraisal

E. Performance measurement systems

a. Decentralisation and responsibility accounting
b. Financial and non-financial performance measures
c. Divisional performance evaluation
d. Transfer pricing
e. Performance measurement systems in the non-profit sector

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Course Delivery Schedule

Period Topic Required Reading

Lesson 1 Relevant cost analysis for decision making Andoh-Kwofie

 Decision-making process (Chapter 7)
 Relevant quantitative and qualitative factors
Drury
 Special order contract, make or buy, discontinuation
(Chapter 11)
decisions.
 Product mix to maximise profit with a single binding
constraint.

Lesson 2 Budgeting for planning and control Andoh-Kwofie

 Introduction to budgetary planning and control (Chapter 9)
 Budget administration and the budgeting process
 Types of budgets and approaches to budgeting Drury
(Chapter 13)
 Preparation of master budget: Functional or operating
budgets; Cash budgets; Budgeted income statement
and statement of financial position

Lesson 3 Standard costing and variance analysis for control Andoh-Kwofie

 Introduction to standard costing system: Standard (Chapter 9)
Setting process; Types of standards
 Flexible budgets Drury
 Variance analysis: Material, labour and overhead cost (Chapter 15)
variances; Sales variance
 Reconciliation of budgeted and actual profit

Lesson 4 Capital investment decisions Andoh-Kwofie

 Estimating project or capital investment cashflows (Chapter 7)
 Allowing for inflation, working capital, taxation, and risk &
uncertainty in investment appraisal Drury
 Investment appraisal techniques: Payback period; (Chapter 11)
Accounting rate of return; Discounted cash flow methods

Lesson 5 Performance measurement systems Andoh-Kwofie

 An effective performance measurement system (Chapter 8)
 Decentralisation and responsibility accounting
 Performance measurement systems: Financial and non- Drury
financial performance measures for the private sector (Chapter 14)
and not-for-profit or public sector
 Transfer pricing

Lesson 6 Specialised management accounting methods Supplementary

reading
 Target Costing, Lifecycle costing, Throughput costing,
Total quality management, Environmental Accounting

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