MANAGEMENT ACCOUNTING 3 - 2018/9

Module code: MAN3086

Module Overview

Accounting is concerned with measurement and management.  Measurement is concerned with recording past data, and management with the use of that data to make decisions that will benefit the business.

Module provider

Surrey Business School

Module Leader

HINDS S Dr (SBS)

Number of Credits: 15

ECTS Credits: 7.5

Framework: FHEQ Level 6

JACs code: N411

Module cap (Maximum number of students): N/A

Module Availability

Semester 1

Prerequisites / Co-requisites

MAN2090 (Financial Accounting 2), MAN2109 (Management Accounting 1), MAN2107 (Management Accounting 2), MAN2089 (Business Finance) and MAN2106 (Corporate Finance) are pre-requisites for this module.  You need to have taken at least one of these pre-requisites.

Module content

Indicative content includes:


Activity based costing
Pricing decisions and profitability analysis
Risk and uncertainty
Investment appraisal 2
Standard costing and variance analysis
Transfer pricing in divisionalised companies
Cost estimation and cost behaviour
Strategic management accounting
Linear programming

Assessment pattern

Assessment type Unit of assessment Weighting
Examination 2 HOUR EXAM (CLOSED BOOK) 70
School-timetabled exam/test 1 HOUR CLASS TEST (CLOSED BOOK) 30

Alternative Assessment

Not applicable

Assessment Strategy

The assessment strategy is designed to provide students with the opportunity to demonstrate

Weekly tutorial and homework questions will build a student’s confidence to undertake the process of cost accounting systems and the theory and practice of standard costing and performance evaluation.

As the course progresses students will see how all the individual components are pulled together and will be able to apply their knowledge in given scenarios. Students will look at ABC, Pricing, Risk and Uncertainty and Investment Appraisal. At this stage the students will be ready for the class test. Following the class test, the focus will be on Variance, Transfer pricing, Strategic Management Accounting, Learning Curves and Linear Programming.

The student will then be in a position to sit the final examination.

Thus, the summative assessment for this module consists of:


Exam 2 hours
Test 1 hour


Formative assessment and feedback

Feedback will be in the tutorials which will serve as information to tell them how they can improve and prepare for their final exams.

Module aims

  • Enable students to use both basic and advanced management accounting concepts and techniques to make key managerial decisions of a type they would encounter in a senior management position.

Learning outcomes

Attributes Developed
1 Analyse risk and uncertainty by calculating expected values and standard deviations KCPT
2 Prepare and apply decision trees and calculate the value of information KCPT
3 Explain why and how standards  are set in manufacturing and in service industries with particular reference  to the maximisation of efficiency and minimisation of waste KCPT
4 Calculate and interpret material mix and yield variances, distinguish  between planning and operational variances KCPT
5 Explain and demonstrate transfer pricing in an international context KPT
6 Evaluate pricing decisions and its impact on profit maximisation KCPT
7 Identify and analyse the impact of uncertainty  and risk on decisions models that may be based on relevant cash flows, learning curves, discounting techniques KCPT
8 Apply activity-based costing techniques to derive approximate long run product or service costs approximate for use in strategic decision making KCPT
9 Evaluate project proposals using the techniques of investment appraisal KCPT
10 Explain the financial consequences of dealing with long run projects, in particular the importance of accounting for the time ‘value of money' KCPT
11 Calculate project cash flows, accounting for tax and inflation, and apply perpetuities to derive ‘end of project' value where appropriate KCPT
12 Apply sensitivity analysis to both short and long run  decisions models to identify variables that might have significant impacts on project outcomes KCPT
13 Explain the impact of just in time manufacturing methods on cost accounting KPT
14 Evaluate management accounting for the modern business environment KCPT
15 Apply principles of environmental costing in identifying relevant internalised costs and externalised environmental impacts of the organisation's activities KCPT

Attributes Developed

C - Cognitive/analytical

K - Subject knowledge

T - Transferable skills

P - Professional/Practical skills

Overall student workload

Independent Study Hours: 104

Tutorial Hours: 46

Methods of Teaching / Learning

The learning and teaching strategy is designed to:

The teaching and learning methods include the use of weekly two-hour tutorials and two-hour drop in to illustrate the theory and allow the student to practice the practical application of such theory with a range of weekly tutorial questions.

Lecture material will be supported by directed reading and weekly homework exercises will be set to test students’ understanding on an on-going basis.

Surrey-learn will be used as an information portal and will contain lecture notes, practical exercises and model answers plus past exam papers and model answers.

Individual feedback will be given in tutorial on the class test and general feedback will be posted on Surrey-learn.

The learning and teaching methods include:


Tutorials 2 hours per week  x 11 weeks
Drop in 2 hours per week x 11 weeks
Revision classes 2 hours week 10 and week 12

Indicated Lecture Hours (which may also include seminars, tutorials, workshops and other contact time) are approximate and may include in-class tests where one or more of these are an assessment on the module. In-class tests are scheduled/organised separately to taught content and will be published on to student personal timetables, where they apply to taken modules, as soon as they are finalised by central administration. This will usually be after the initial publication of the teaching timetable for the relevant semester.

Reading list

Reading list for MANAGEMENT ACCOUNTING 3 : http://aspire.surrey.ac.uk/modules/man3086

Programmes this module appears in

Programme Semester Classification Qualifying conditions
Accounting and Finance BSc (Hons) 1 Optional A weighted aggregate mark of 40% is required to pass the module

Please note that the information detailed within this record is accurate at the time of publishing and may be subject to change. This record contains information for the most up to date version of the programme / module for the 2018/9 academic year.