Faculty of Arts, Business, Informatics & Education
ACCT19060
Management Accounting
What is this course about?
This course builds on the concepts of managerial accounting introduced in first-year
accounting. The course commences with a recap of some of the basic concepts
previously covered, such as the contribution margin, CVP analysis and cost pools. For
the first time, students will look at accounting in terms of the value chain. More
specifically, students will look at some of the alternative accounting systems operations costing and backflush costing. Other topics covered include absorption
costing, variable costing, cost behaviour and cost allocation. This course also introduces
the additional purposes of management accounting - provision of information for
decision- making and the evaluation of past decisions. Budgeting concepts previously
studied form the basis for extensive work in the area of variance analysis. Students will
look at both the application and interpretation of variances.
What are the expected
outcomes of the course?
Course learning outcomes
On successful completion of this course, you should be able to:
1. be aware of the role of the management accountant in decision-making and
control
2. recognise appropriate techniques for product costing and be able to apply each of
these
3. be aware of the types of decisions which management need to make with respect
to efficient operations, be able to identify the relevant information for such
decisions, and be able to analyse such information to indicate if and when
problems exist
4. manipulate spreadsheet data to support decision analyses
5. logically analyse both programmed and non-programmed problems
6. be aware that the management accountant must work as an effective member of a
management team.
When is it offered?
2009 Term Three
For those of you taking the course on campus, the schedule will be published at
http://timetabling.cqu.edu.au
Where is it offered?
Flexible Learning, Melbourne, Sydney
How is it assessed?
Approved assessment for this course is:
Examination 70%
Other
30%
Assessment 1 30% Questions
What textbooks do I need
to obtain?
ALL
Prescribed
● Eldenburg, Brooks, Oliver, Vesty, Wolcott 2008, Contemporary Management
Accounting, John Wiley & Sons Australia, Ltd, Milton.
Course Profile for: ACCT19060, 2009 Term Three - Page 1
Who do I contact?
Coordinator:
Email:
Phone:
Graham Ivers
[email protected]
+61 07 4923 2782
Additional contact details may be found at:
http://lecturer.cqu.edu.au/lecturer.jsp?term=2093&course=ACCT19060
Copyright CQUniversity
Information for Students for this Offering
Study Schedule
Week
Begin Date
Module/Topic
Chapter
Week 1
02 Nov 09
Introduction to management accounting
1
Week 2
09 Nov 09
Cost estimation and cost volume profit analysis
2&6
Week 3
16 Nov 09
Budgeting systems
7
Week 4
23 Nov 09
Introduction to Costing systems
3
Week 5
30 Nov 09
Activity Based Costing and Activity Based
Management
4
Week 6
14 Dec 09
Job Costing
13
Week 7
21 Dec 09
Process Costing
14
Events and
submissions
Assessment item 1
All Students
Questions
Due: 24 Dec 09
Week 8
04 Jan 10
Standard costs for control
10
Week 9
11 Jan 10
Absorption, Variable and Throughput Costing
15
Week 10
18 Jan 10
Relevant Costing
8
Week 11
25 Jan 10
Price and Performance evaluation and compensation 5 & 11
Week 12
01 Feb 10
Strategy and the Balanced Scorecard
12
Course Profile for: ACCT19060, 2009 Term Three - Page 2
Assessment Submission
Hard Copy (when required)
Off-campus students
Submit hard copy, signed assignments to the Student Contact Centre, Building 5, CQUniversity, Rockhampton
QLD 4702.
● Access CQUcentral to print a personalised Assessment Cover Sheet for each assignment submission Instructions
for generating your coversheet are at: http://dtls.cqu.edu.au/FCWViewer/getFile.do?id=23407
On-campus students
Submit hard-copy, signed assignments to Assignment Boxes located on your particular Campus - if none are available
then submit to the Administration Office.
●
Central Queensland Campus Students should access CQUcentral to print a personalised Assessment Cover Sheet
for each assignment submission. Instructions for generating your coversheet are via the link above.
● Australian International Campus Students should access the personalised coversheet available at your Campus.
Electronic Delivery (when required)
All assignments submitted electronically must be through the Student Portal http://mycqu.cqu.edu.au/portal/dt
As submission methods may vary from the above please check details on your course website or with your course
coordinator if in doubt.
POLICIES AND PROCEDURES FOR ASSESSMENT
Students must familiarise themselves with the following policies and procedures:
●
Assessment and examination policy and procedures - http://policy.cqu.edu.au/Policy/policy_file.do?policyid=701
Assignment preparation and presentation Guide for Students http://content.cqu.edu.au/FCWViewer/getFile.do?id=26491
Presentation - http://fbi.cqu.edu.au/FCWViewer/getFile.do?id=17724
Referencing style
The Faculty of Arts, Business, Informatics & Education generally uses the Harvard (Author/date) style of referencing
except for law and education courses. More information on the styles used by various schools can be found at
http://facultysite.cqu.edu.au/FCWViewer/view.do?page=3955
For LAWS courses http://www.lib.unimelb.edu.au/cite/law/index.html
Applying for extensions - http://content.cqu.edu.au/FCWViewer/view.do?site=534
Assignment grading - http://policy.cqu.edu.au/Policy/policy_file.do?policyid=437
What is plagiarism? - http://facultysite.cqu.edu.au/FCWViewer/view.do?page=3952
General student information (CQUcentral) - http://navigatecquni.cqu.edu.au/FCWViewer/getFile.do?id=26605
Course Profile for: ACCT19060, 2009 Term Three - Page 3
Faculty Guide
Guide for Students http://content.cqu.edu.au/FCWViewer/view.do?page=9177
OTHER IMPORTANT DATES
Examinations:
Standard Examinations 8 – 12 February 2010
Deferred/Supplementary Examinations 6 – 9 April 2010
Note: A recess is held during term. Please consult the CQU handbook for specific dates and other information at:
http://handbook.cqu.edu.au
Contacting teaching staff
During the course, students should initially contact their local teaching staff to answer any queries related to the course
that they may have. Contact details for local teaching staff can be found on the course website. If local teaching staff
cannot fully answer the query or it is of a personal nature, students can contact the Course Coordinator.
A directory of assistance containing information for both on-campus and off-campus students will be provided on the
web, before term starts, at: http://content.cqu.edu.au/FCWViewer/view.do?site=534
The university allocates every student an individual email address, the format of which is student
[email protected] (e.g. [email protected]). This is the official email address that the
university will use for all email correspondence. Student emails can be accessed through http://webmail.cqu.edu.au or
http://mycqu.cqu.edu.au. Students are expected to check their official email address on a frequent and consistent basis
(at least once weekly). Students are encouraged to review the new university policy relating to email communication at
http://policy.cqu.edu.au/Policy/policy.jsp?policyid=642 which has been introduced to ensure all course and program
updates are received.
Course Profile for: ACCT19060, 2009 Term Three - Page 4
Assessment
Continuous assessment/examination
For students to receive a passing grade in this course they must receive 50% (or greater) of the total marks for
the course.
Assignment submission
Off-campus students should submit hard copy, signed assignments to the Student Contact Centre, Building 5,
CQUniversity, Rockhampton, QLD 4702.

Access CQUcentral to print a personalised assessment coversheet for each assignment submission.
Instructions for generating your coversheet are at:
http://dtls.cqu.edu.au/FCWViewer/getFile.do?id=23407.
On-campus students should submit hard-copy, signed assignments to assignment boxes located on your
particular campus – if none is available then submit to the Administration Office.
Central Queensland Campus students should access CQUcentral to print a personalised assessment
coversheet for each assignment submission. Instructions for generating your coversheet are via the link above.

Australian International Campus students should access the personalised coversheet available at your
Campus.
Course Profile for: ACCT19060, 2009 Term Three - Page 5
Assessment details for ALL students
Assessment item 1 — Questions
Due date:
Thursday of Week 7
Weighting:
30% (see marking criteria sheet for specific breakdown of
marks)
Length:
N/A
ASSESSMENT
1
Objectives
This assessment item relates to the course learning outcomes 2, 3 & 4 listed on page 1.
Details
There are two parts to this assignment, each with a number of questions. The first relates to the Premier Sound
and the second to Green Fingers Landscaping Design.
The assignment requires a significant part of the work to be done in a spreadsheet. I have not nominated any
particular vendor or any particular version. The choice is up to you, but you must ensure that you do the work
where required in a spreadsheet.
Any student who does not do the work required in a spreadsheet will be deemed to have attempted to have
circumvented the assignment and therefore will receive no marks for the assignment.
I reserve the right to require you to supply the spreadsheet in soft form and then explain to your lecturer how the
assignment was prepared using that spreadsheet.
As a suggestion you could do some of the review exercises nominated in the Study Guide as Excel during the
term. Some of these have pro forma spreadsheets available from the textbook publisher’s web site. You can
also consider doing the assignment by hand so you get to know what you are doing from an accounting
perspective. Then you can go ahead and incorporate that into the spreadsheet abiding by the requirements of the
assignment.
If you are unsure of the spreadsheet functions then there are help facilities within most spreadsheet software,
there are texts in most libraries, and also material is available from the web. In addition to these sources, any
student who is experiencing difficulty with spreadsheets should contact the Learning Centre at the campus and
the local lecturer.
All calculation work for this assignment is to be done using a spreadsheet. In the spreadsheet, you are to use
three sheets:
-
Input
-
Processing, and
-
Output
All data that is to be used in the calculations is to be entered into the Input sheet. All calculations are to be
performed in the Processing sheet. Note that all calculated values required in the Processing sheet must come
from the Input sheet. The Output sheet is to allow you to choose the appropriate format in which to present
your answers to the assignment. All values in the Output sheet must come from the Processing sheet.
Course Profile for: ACCT19060, 2009 Term Three - Page 6
At the top of each page of the Input, Processing or Output sheet you are to show your student number, the name
of the sheet and the name of the firm.
You are to design the spreadsheet so that the only numeric values that can be altered by staff are located in the
Input sheet. All textual values must not be able to be altered.
Part B of the assignment must start on a new page.
For each sheet, you are to print a report from the spreadsheet that shows the rows and columns together with
any formula that has been used in each cell of the sheet.
You are also to print a standard report of each sheet showing the value of all cells. Thus this part requires you
to print the results direct from the spreadsheet and not to type or cut and paste into a word document.
In a word document, you are to explain the layout of the spreadsheet so that staff will be able to read the details
and then be able to use the spreadsheet.
In a separate part of the word document, explain how you have secured the spreadsheet so that it can not easily
be altered by staff.
Part A – Premier Sound
Premier Sound produces two types of sound systems: deluxe and regular. The results for 2008 were as follows:
Budgeted Overheads
$360 000
Expected Activity (in direct labour hours)
50 000
Actual activity (in direct labour hours)
51 000
Actual overheads
$400 000
Deluxe
Regular
5 000
50 000
$80 000
$600 000
5 000
46 000
Units produced
Prime costs
Direct labour hours
Question 1
(a) Calculate the predetermined overhead rate based on direct labour hours.
(b) What is the value of the applied overheads?
(c) What value is the under or over applied overhead variance?
(d) Calculate the units cost of each stereo.
Course Profile for: ACCT19060, 2009 Term Three - Page 7
Data for 2009 has just become available to Premier Sound. The department costs are as follows:
Fabrication
Assembly
$240 000
$120 000
Fabrication
Assembly
Deluxe
3 000
2 000
Regular
3 000
43 000
Total
6 000
45 000
Fabrication
Assembly
Deluxe
2 000
5 000
Regular
18 000
5 000
Total
20 000
10 000
Budgeted overheads
Expected and actual usage
(direct labour hours)
Details of machine hours have become available.
Expected and actual usage
(machine hours)
In addition to the above, the following data also has become available:
Units produced
Prime costs
Deluxe
Regular
5 000
50 000
$80 000
$600 000
Question 2
(a)
Calculate departmental overhead rates using machine hours for fabrication and direct labour hours for
Assembly.
(b)
Calculate the applied overheads by department
(c)
Calculate the applied overheads by product
(d)
Calculate unit costs.
Course Profile for: ACCT19060, 2009 Term Three - Page 8
Suppose for a different period, the activity data for Premier Sound is as follows:
Product costing data
Activity usage
measures
Deluxe
Regular
Total
5 000
50 000
55 000
$78 000
$738 000
$816 000
5 000
45 000
50 000
10 000
90 000
100 000
Production runs
10
5
15
Number of moves
120
60
180
Units produced per
year
Prime costs
Direct labour hours
Machine hours
Activity cost data (overhead activities)
Activity
Activity Cost
Set-Ups
$120 000
Material Handling
$60 000
Power
$100 000
Testing
$80 000
Total
$360 000
Question 3
(a)
Calculate the consumption ratios for each activity.
(b)
Group activities are based on batch level and unit level pools. Calculate a rate for each pooled group of
activities,
(c)
Using the pool rates, calculate unit product costs.
Course Profile for: ACCT19060, 2009 Term Three - Page 9
Part B – Green Fingers Landscaping Design
Green Fingers Landscaping Design has established a strong reputation for designing good landscape plans and
then bringing those plans into reality. On 1 June there were three jobs in process: jobs 78, 79 and 80. During
June two more jobs were started: jobs 81 and 82. By 30 June jobs 79, 80 and 82 had been completed. The
following data applied to June:
Job 78
Job79
Job80
Job 81
Job 82
Balance 1
June
$1 080
$2 460
$1 980
$0
$0
Direct
Materials
$1 400
$1 120
$150
$7 000
$5 500
Direct
Labour
$1 000
$1 200
$180
$5 000
$4 000
Overheads are applied at the rate of 120% of direct labour costs. Jobs are sold at cost plus 40%. Operating
expenses for June were $7,340.
Question 1
(a)
Prepare a table that shows job order costs for each job as at 30 June.
(b)
Calculate the ending balance in Work in Process (as at 30 June) and Cost of Goods Sold for June.
(c)
Construct an income statement for Green Fingers Landscaping Design for the month of June. (round
sales to the nearest dollar).
Course Profile for: ACCT19060, 2009 Term Three - Page 10
Marking Criteria Sheet
Marks available
Spreadsheet
Design of spreadsheet
15
Report with formulas
5
Report with calculated values
5
Explanation of Spreadsheet
Layout
15
Security
10
Part A – Premier Sound
1 (a) Calculate Predetermined Overhead rate
10
1 (b) Applied Overheads
10
1 (c) Overhead Variance
10
1 (d) Unit Cost
30
2 (a) Departmental overhead rates
10
2 (b) Applied overheads by department
10
2 (c) Applied overheads by product
20
2 (d) Unit Costs
20
3(a) Consumption ratios
20
3 (b) Pool Rates
30
3 (c) Unit Product costs
30
Part B – Green Fingers Landscaping Design
1 (a) Job order costs table
30
1 (b) Ending Work in Process
10
1 (b) Cost of Goods Sold
10
1(c) Income Statement
Assignment Total
300
Assignment Total out of 30
30 marks
Course Profile for: ACCT19060, 2009 Term Three - Page 11
Marks awarded
Examination
Due date:
During examination period at end of term.
Weighting:
70%
Length:
3 hours
Examination conditions

The examination is closed-book. Closed-book means you are not permitted to take any materials into the
examination room with you unless specified.

You may take a non-programmable, no text retrieval, silent only calculator into the examination room in
accordance with CQU policy.

You may take a non-electronic, concise, direct translation only dictionary into the examination room in
accordance with CQU policy. Dictionary must not contain any notes or comments.

Perusal time is 15 minutes.
View the University’s policy on examination in the Assessment of Coursework Policy at:
http://policy.cqu.edu.au
View important examination information at:
http://handbook.cqu.edu.au/Handbook/information.jsp?id=126
The examination timetables will be made available later in the term. View the examination timetable at:
http://www.cqu.edu.au/studinfo/admin/timetabling/index.htm
Further information on the examination will be available on the course website during the term and
within the revision lecture.
NOTE: The examination information provided in this Course Profile also relates to Deferred Exams.
No separate advice will be provided in the case of a deferred exam.
Course Profile for: ACCT19060, 2009 Term Three - Page 12