ACCT 321 - Kenya Methodist University

KENYA METHODIST UNIVERSITY
ODLM ASSIGNMENT GUIDELINE FROM ACCOUNTING, FINANCE AND
INVESTMENT DEPARTMENT
1st TRIMESTER 2015
1.
The Odlm assignment must be completed and submitted to the ODLM office (KeMU Hub)
before 5th March 2015.
2.
Late assignments will NOT be received.
3.
Student who will not have submitted the assignments (for the department) by the due date
will be required to BOOK for a sit-in CAT with the departments Administrative Officer by 12th
March 2015.
4.
APA format is expected - plagiarism is illegal
5.
Attached is the assignment and the course outline
ACCT 321 ,MANAGERIAL ACCOUNTING ODLM ASSISNMENT
QUESTION ONE
a) Discuss the Role of the Management Accountant in the Management Process ( 10marks)
b) Highlight and discuss the Decision Making Process
(5Marks)
c) QUESTION Two
d) Basic analysis ltd produces and sells one product only, the BBT, the standard cost for one unit
being as follows:
e)
Sh.
f) Direct material A- 10 kg at Sh.20 per kg
200
g) Direct material B- 5 litres at Sh.6 per litre
30
h) Direct wages- 5hrs at Sh.6 per hour
30
i)
Fixed production overhead
50
j)
Total standard cost
310
k)
l)
The fixed overhead included in the standard cost is based on an expected monthly output of 900
units
m) During April Year 1 the actual results were as follows.
n)
o)
p) Production
800 units
q) Material A
7,800 kgs used, costing Sh.159, 900
r) Material B
4,300 units used costing Sh.23, 650
s) Direct wages
4,200 hrs worked for Sh.24,150
t) Fixed production overhead
Sh.47,000
u)
v) Required
w) Calculate price and usage variances for each material
x) Calculate labour rate and efficiency variances
y) Calculate fixed production overhead expenditure and volume variances
(6 Marks)
(7 Marks)
(7 Marks)
ACCT 321: MANAGERIAL ACCOUNTING
COURSE OUTLINE
COURSE OBJECTIVE
This course is intended to introduce the students to the management’s use of accounting
information for purposes of planning and control of an organization’s business activities.
Fundamental accounting techniques of planning and control will be discussed.
Prerequisite: Cost Accounting (ACCT 219)
COURSE CONTENT
Topic 1
Topic 2
The Nature and Purpose of Management Accounting
Introduction to management accounting
Accounting as an information system
Management use of accounting information
Financial accounting vs. Management accounting
Cost objectives and classifications
Cost Estimation
Accounts classification methods
Industrial engineering methods
High-Low Approach
Week 1
Week 2
Topic 3
Topic 4
Topic 5
Topic 6
Topic 7
Scatter graph approach
Linear Regression analysis
Cost – Volume Profit Analysis and Profit Planning
Break – even analysis
Graphical analysis of break-even
Sensitivity Analysis
Critical review of CVP model
Importance of profit planning
CAT 1
Product Costing Methods
Variable costing system
Absorption costing system
Activity based costing
Effects of the costing methods on income
Budgeting
Introduction to budgeting
Objectives of budgets
Types of budgets and their features
Budget construction
CAT 2
Decision – Making and Performance Evaluation
Relevant costs for decision making
Pricing and other non-routine decisions
Cost - benefit analysis
Importance of performance evaluation
Variance Analysis
Standard costs and flexible budgets
Basic variance analysis
Investigating variances
REVISION
Week 3
Week 4
Week 5-6
Week 7-8
Week 9
Week 10
Week 11
Week 12
COURSE METHODOLOGY AND EVALUATION
The course will be covered mainly through lectures, class discussions and problem-solving
sessions. Students will be evaluated as follows:
Assignments/Tests
Final Examination
30%
70%
100%
COURSE TEXT BOOKS
1. Drury C: Management and Cost Accounting, Book power Publishing, current Edition
2. Horngren C.T and Foster, C; Cost Accounting – A Managerial Emphasis, 8th Edition
3. Horngren, C.T and Sunder G. L: Introduction to Management Accounting, Prentice- Hall,
7th Edition.