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ACCT19060
Management Accounting
2008 TERM ONE
Course Profile
© Copyright Central Queensland University (CQU) 2008
Copyright material contained herein is either copied and/or communicated with the express
permission of the Copyright Owner or under the provision of the Copyright Act 1968.
CQU authorises the copying and/or communication to public access of this document provided
that copyright material, other than that created by the author/s, or for which permission has been
obtained, is restricted to CQU staff and students through a password protected Appendix.
CQU CRICOS Codes: 00219C - Qld; 01315F - NSW; 01624D - Vic
CQU Course Profile for ACCT19060 2008 Term One
PART A
Course details
Course code
ACCT19060
Course name
Management Accounting
Faculty
Faculty of Business & Informatics
Units of credit
Six (6)
Prerequisite/Corequisite
Prerequisite: ACCT 11057
Suggested study commitment 12 hours per week or 144 hours per term
Term of offering
2008 Term One
Course website
http://mycqu.cqu.edu.au
Campuses
Brisbane, Bundaberg, Emerald, Flexible Learning, Gladstone,
Gold Coast, Mackay, Melbourne, New Zealand, Rockhampton,
Shanghai Delivery Site, Sydney
You must contact your faculty for their latest Guide for Students
This Course Profile contains important information. Please ensure that you read it
carefully. It is also strongly recommended that you keep this copy of your Course Profile
for future reference.
Throughout this document the term off-campus student means:

those students who are enrolled in the course by the Flexible, Distance or External mode.
This definition also relates to those students enrolled through Hong Kong College of
Technology, Hartford Institute (Singapore) or LaSalle-DHU (Shanghai). Students who are
enrolled by the flexible mode and who attend lectures on any of the Queensland campuses
are still referred to as off-campus students.
Throughout this document the term on-campus student means:

those students who are enrolled in the course by the internal mode at any of the Queensland
campuses or any of the Australian International campuses.
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CQU Course Profile for ACCT19060 2008 Term One
Course synopsis
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.
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, be aware that the
management accountant must work as an effective member of a management team
assessment
6. be aware that the management accountant must work as an effective member of a
management team.
Assessment (approved by Academic Board)
Examination
70%
Other Assessment
30%
100%
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CQU Course Profile for ACCT19060 2008 Term One
PART B
Continuous assessment / examination
To pass this course you must complete all the required assessment items outlined in this Course
Profile, and you must obtain an overall mark of 50% or higher for the course.
Assessment for all students
Assessment for the course will be on the basis of:
Assessment item 1: Assignment
30%
Examination
70%
Thursday 10 April 2008
(Week 6)
Assessment and examination information are located in Part C of this Course Profile and are
available online to CQU staff and students only.
Textbooks
Textbook information shown is correct at Tuesday, January 29, 2008 at 02:22 PM. Please use this
link to obtain current and purchasing details:
http://content.cqu.edu.au/TeachingData/textbooks_view.do?term=2081&course=ACCT19060
Prescribed
•
Horngren, CT, Datar, SM & Foster, GM 2005, Cost accounting + student solutions
manual, 12th edn, Pearson Education, New York.
Note: When purchasing this text through the CQU Bookshop, the Student Solutions
Manual is packaged at no extra cost.
Optional/Supplementary
Cotesta, P, Crosling, G, Murphy, H & Sands, J 2004, Writing and presenting in
accounting, 2nd edn, LexisNexis Butterworths Australia, Sydney.
• Weerasooria, WS & Ipp, DA 2002, Butterworths business and law dictionary,
LexisNexis Butterworths Australia, Sydney.
•
Do not rely on the CQU Library for set textbooks, as multiple copies are not available.
Contact details
Details shown are correct as at Tuesday, January 29, 2008 at 02:22 PM. Please use this link to
view current contacts:
http://lecturer.cqu.edu.au/lecturer.jsp?term=2081&course=ACCT19060
Rockhampton Coordinator:
Mr Graham Ivers
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CQU Course Profile for ACCT19060 2008 Term One
Contact details:
Phone: +61 07 4923 2782
Fax: +61 07 4930 9700
Address: Building 34/2.06 Faculty of Business and
Informatics Rockhampton Campus Commonwealth Building
34 Central Queensland University Central Qld Mail Centre
ROCKHAMPTON QLD 4702
Email: [email protected]
Additional contact details
A directory of assistance containing important telephone numbers and other information for both
on-campus and off-campus students will be provided on the web, before term starts, at:
http://fbi.cqu.edu.au/FCWViewer/view.do?page=7
If you are unable to access the web for this information please telephone the relevant School
Administration Officer by telephone on (07) 4930 9637, (07) 4930 9866, (07) 4923 2788 or
(07) 4930 6828 and a copy will be provided.
Course presentation
Web mail
The university allocates every student an individual email address, the format of which is
[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.
ALL students
The presentation for all students, in addition to this Course Profile, comprises:

Study Guide

Course website is required. This is provided using the Learning Management System which
can be accessed through the MyCQU Student Portal: http://mycqu.cqu.edu.au/portal/dt. If
you have difficulty logging in, please contact Helpdesk on (07) 4930 9233.

Regular student access to email is required for this course

Regular student access to the Internet is required for this course.
On-campus students
The presentation for on-campus students comprises:

1 x 1 hour lecture per week

1 x 2 hour tutorial per week.
(The presentation hours may vary depending on student numbers)
Students are expected to follow a self-directed study schedule which meets the required
deadlines.
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CQU Course Profile for ACCT19060 2008 Term One
Required resources
Guide for Students
Students should refer to the referencing style set out in Chapter 2 of the Faculty of Business and
Informatics, Guide for Students, http://fbi.cqu.edu.au/FCWViewer/view.do?page=492
Course website
You should check the course website weekly as additional materials will be made available
throughout the term. The materials available will include:

links to useful websites,

lecture slides ,

practice multiple choice questions , and

discussion lists and email.
The discussion lists allow students to openly discuss the course contents with each other.
Please use the discussion list to communicate with other students enrolled in the course. The
Course Coordinator will contribute to the discussion list as required throughout the term.
Computer (including software) requirements
You must have access to the following computer resources:
Regular student access to a computer is required.
Recommended references
Hansen, D & Mowen, M 2006, Management accounting, 8th edn, Thomson Learning, Singapore.
Horngren, C, Sundem, GL & Stratton, WO 2007, Introduction to management accounting, 14th
edn, Prentice Hall, Englewood Cliffs, NJ.
Langfield-Smith, K, Thorne, H & Hilton, RW 2006, Management accounting: information for
managing and creating value, 4th edn, McGraw Hill, Sydney.
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CQU Course Profile for ACCT19060 2008 Term One
PART C
Proposed weekly schedule
Week
Week beginning
dates
Module/Topic
Chapter
1
The role of management
accounting in the organisation;
cost terminology
1, 2
3 March 2008
2
10 March
Cost accounting systems
3,4
3
17 March
Activity based costing and
customer profitability analysis
5, 14
4
25 March
Variance analysis
7
5
31 March
Variance analysis
8, 14
Inventory costing
9
6
7 April
7
21 April
Cost behaviour
10
8
28 April
Managerial decision making and
pricing decisions
11, 12
9
6 May
Cost allocation: Allocating costs
of service departments
14, 15
10
12 May
Cost allocation: Costing joint
products and by-products
16
19 May
Process costing: Weighted
average approach and first-infirst-out approach
17
11
12
26 May
Process costing: Spoilage, scrap
and reworked products
18
Events and
submissions
Assessment item
1 due Thursday
10 April
2-4 June
Review Period
Review
5-20 June
Examination Period
Examination
Note: A recess is held during term. Please consult the CQU Handbook for specific
dates and other information at:
http://handbook.cqu.edu.au
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CQU Course Profile for ACCT19060 2008 Term One
Assessment
Assignment submission
For Off-campus students, hard copy, signed assignments for this course should be
submitted using the Division of Teaching and Learning Services assignment submission
system.
On-campus students should submit hard copy, signed assignments through their
particular campus submission system.
Policies and procedures for assessment
Students must familiarise themselves with the following policies and procedures:
Assessment and
examination policy and
procedures
University Assessment of Coursework Policy
http://policy.cqu.edu.au
Assignment preparation
and presentation
Chapter 1 Guide for Students
Referencing style
Detailed information: Chapter 2 Guide for Students
http://fbi.cqu.edu.au/FCWViewer/view.do?page=492
http://fbi.cqu.edu.au/FCWViewer/view.do?page=492
Assignment submission
Chapter 1 Guide for Students
http://fbi.cqu.edu.au/FCWViewer/view.do?page=492
Applying for extensions
http://fbi.cqu.edu.au/FCWViewer/view.do?page=7
Assignment grading
http://fbi.cqu.edu.au/FCWViewer/view.do?page=7
Plagiarism policy
http://policy.cqu.edu.au/Policy/policy.jsp?policyid=198
Plagiarism detailed
explanation
Chapter 2 Guide for Students
http://fbi.cqu.edu.au/FCWViewer/view.do?page=492
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CQU Course Profile for ACCT19060 2008 Term One
Assessment details for ALL students
Assessment item 1 —Assignment
Due date:
Thursday, 10 April 2008 (Week 6)
Weighting:
30%
ASSESSMENT
1
Objectives
This assessment item relates to the course learning outcomes 2, 3 & 4 as stated in
Part A.
Details of the Assignment
In this assignment there are two parts, each with a number of questions. The first
relates to Mighty Manufacturing Ltd and the second to Superb Engineering Works.
All calculation work for this assignment is to be done using a spreadsheet. In the
spreadsheet, you are to use three sheets:
(a)
(b)
(c)
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 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.
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 rows and
columns together with any formula that has been used in each cell of the sheet.
You are to print a standard report of each sheet showing the value of all cells.
In a word document, you are to explain the layout of the spreadsheet so that staff will
be able to read and then use the spreadsheet.
In a word document, explain how you have secured the spreadsheet so that it can not
easily be altered by staff.
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CQU Course Profile for ACCT19060 2008 Term One
Part A – Mighty Manufacturing Ltd
Mighty Manufacturing is a producer of precision machine parts. It uses a
predetermined overhead rate to apply overheads. Overheads are applied on the basis of
machine hours in the drilling department and on the basis of direct hours in the
assembly department. At the beginning of 2007, the following estimates were provided
for the coming year:
Drilling
Direct labour hours
Assembly
10 000
100 000
140 000
10 000
2 000
4 000
Direct labour hours
$190 000
$900 000
Overhead cost
$300 000
$196 000
Machine Hours
Inspection hours
Actual results for 2007 were as follows:
Drilling
Direct labour hours
Machine Hours
Inspection hours
Direct labour hours
Overhead cost
Assembly
21 000
98 000
144 000
11 000
2 000
4 000
$84 000
$441 200
$301 000
$206 000
Question 1
(a)
Calculate the predetermined overhead rates for each department.
(b)
Calculate the applied overheads for 2007. What are the underapplied or
overapplied overheads for (i) each department and (ii) the firm?
(c)
Suppose a job uses 2 000 machine hours in drilling and 800 direct labour hours in
assembly. If the job size is 4 000 units, what is the applied overhead cost per
unit?
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CQU Course Profile for ACCT19060 2008 Term One
Mighty Machinery continued
Suppose the overhead costs are divided between two activities as follows:
Activity
Cost
Budgeted overheads
$316 000
Inspection
$180 000
Question 2
(a)
Calculate the predetermined overhead rates for the two activities, machining and
inspection.
(b)
Suppose a job uses 2 000 machine hours and 400 inspection hours. If the job size
is 4 000 units, what is the applied overhead cost per unit?
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CQU Course Profile for ACCT19060 2008 Term One
Part B – Superb Engineering Works
Superb Engineering Works (SWE) has established a strong reputation for designing and
manufacture of large engineering products. It does this on a job order costing system
that uses activity based costing to apply overheads to the various jobs. SWE has
identified three overhead activities and their respective drivers. Budgeted information
for the year is as follows:
Activity
Engineering Design
Purchasing
Other overheads
Cost
Driver
Amount of driver
$120 000 Engineering hours
2 000
$43 500 Number of parts
5 000
$125 000 Direct labour
10 000
SWE worked five jobs in July. Data are as follows:
Job 50
Job 51
Job 52
Job 53
Job 54
Balance 1 July
$21 225
$21 500
$14 500
$0
$0
Direct Materials
$18 500
$11 950
$12 750
$8 000
$9 250
Direct Labour
$20 000
$19 250
$21 500
$10 450
$9 000
Engineering hours
20
15
32.5
50
105
Number of parts
75
90
100
250
150
1250
1 200
1 300
600
550
Direct labour hours
By 31 July, Jobs 50, 51 and 52 had been completed and sold. The remaining jobs were
in process.
Question 1
(a)
Calculate the activity rates for each of the three overhead activities.
(b)
Prepare job order cost sheets for each job showing all costs up until 31 July.
What is the cost of each job by the end of July?
(c)
Calculate the balance in Work in Process on 31 July.
(d)
Calculate Cost of Goods Sold for July.
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CQU Course Profile for ACCT19060 2008 Term One
Superb Engineering Works continued
Assume that SWE uses one factory overhead rate based on direct labour hours.
Question 2
(a)
Calculate the factory wide overhead rate for SWE.
(b)
Prepare job order cost sheets for each job showing all costs up until 31 July.
What is the cost of each job by the end of July?
(c)
Calculate the balance in Work in Process on 31 July.
(d)
Calculate Cost of Goods Sold for July.
(e)
Explain if activity based costing is preferable to simply using a factory based
overhead. What advantage or disadvantage is there if activity based costing is
employed?
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CQU Course Profile for ACCT19060 2008 Term One
Marking Criteria Sheet
Marks available
Marks awarded
Spreadsheet
Design of spreadsheet
15
Report with formulas
5
Report with calculated values
5
Explanation of Spreadsheet
Layout
15
Security
10
Part A – Mighty Manufacturing
– Question 1
Calculate Predetermined Overhead
rate for each department
10
Calculate Applied Overheads
10
Calculate under or over applied
overhead for each department
20
Calculate under or over applied
overhead for the firm.
10
Overhead cost per unit
20
Part A – Mighty Manufacturing
– Question 2
Calculate Predetermined Overhead
rates for machining and inspection.
10
Calculate Overhead cost per unit
20
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CQU Course Profile for ACCT19060 2008 Term One
Part B – Superb Engineering
Works – Question 2
Activity rates for the three
overhead activities.
15
Job order costs sheets
35
Work in Process on 31 July
10
Cost of Goods Sold for July.
15
Part B – Superb Engineering
Works – Question 2
Factory wide overhead rate
5
Job order cost Sheets
25
Balance WIP on 31 July.
10
Cost of Goods Sold for July.
15
Activity based versus factory based
overhead.
20
Assignment Total
300
Assignment Total out of 30
(divide by 10)
30
Comments:
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CQU Course Profile for ACCT19060 2008 Term One
Examination
Due date:
5 - 20 June 2008 (Examination period)
Weighting:
70%
Length:
Duration 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-electronic, concise, direct translation-only dictionary into the
examination room in accordance with CQU policy.

You may take a non-programmable, no text retrieval, silent only calculator into the
examination room in accordance with CQU policy.

Perusal time: 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 your course website
later in the term and within your revision lecture.
Students should also note that if Supplementary Assessment is granted, this will in
many cases take the form of a Supplementary Examination as is required for
professional body accreditations.
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
Assessment
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