Cost Management Systems PDF

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SUBJECT OUTLINE 22321 Cost Management Systems Course area

UTS: Business

Delivery

Autumn 2021; City

Credit points 6cp Requisite(s)

22207 Accounting for Business Decisions B AND Completionof subject 26100 Integrating Business Perspectivesc Completion of subject 26100 Integrating Business Perspectives These requisites may not apply to students in certain courses. There are also course requisites for this subject. See access conditions.

Result type

Grade and marks

Subject coordinator Dr. Hannah Pham Accounting Discipline Group Location: CB08.06.081 Email: [email protected] Office Phone: (02) 9514 7862

Subject description This subject introduces students to the basic concepts underlying management accounting, which is one of the core streams in the study of accounting. It provides an in-depth understanding of appropriate cost management concepts with an emphasis on the use of accounting information to understand and make decisions about the management of the cost structure of organisations. Students acquire a set of concepts, skills and techniques that are necessary for potential managers, with particular appreciation of the various issues and challenges faced by managers within organisations.

Subject learning objectives (SLOs) Upon successful completion of this subject students should be able to: 1. Discuss the role of management accounting in contemporary organisations 2. Apply technical methods to forecast and evaluate cost incurrence in a range of business contexts 3. Use information and communications technology to support cost accounting analysis and decision-making 4. Explain how management accounting systems incorporate multiple stakeholder perspectives

Course intended learning outcomes (CILOs) This subject also contributes specifically to the following program learning objectives: Critically analyse sustainability principles for various stakeholders in relation to business contexts (4.2)

Contribution to the development of graduate attributes This subject contributes to the Accounting Major by introducing fundamental management accounting concepts and techniques necessary to produce and apply accounting information in contemporary organisations. The subject relates more broadly to the Bachelor of Business through an appreciation of how accounting information is implicated in wider organisational decision-making processes. Specifically, this subject contributes to the development of the Graduate Attribute “business knowledge and concepts” by introducing students to the cost accounting principles and technical skills necessary for a professional accountant, and demonstrating how these concepts can be used to help solve practical business problems. The subject also contributes to the Graduate Attribute of “business practice oriented skills” through an appreciation of conventional and contemporary methods of cost accounting, which are necessary for preparing accounting reports such as budgets. The subject also exposes students to how cost information is being used to manage multiple stakeholder concerns through internal and external reporting. This subject contributes to the development of the following graduate attributes: Business knowledge and concepts Attitudes and values Business practice oriented skills This subject also contributes specifically to develop the following Program Learning Objectives: 12/02/2021 (Autumn 2021)

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1.1: Critically analyse relevant concepts to understand practice in business and related professions in a global workplace 5.1: Apply technical and professional skills necessary to operate effectively in business and related professions

Teaching and learning strategies Cost Management Systems is taught using a mix of face-to-face teaching, online resources and self-directed study. Lectures: Lectures provide the structure of a topic area, discussion of theory and practical examples. Lecture recordings are available through the Canvas site. Tutorials: Students are expected to attend the lecture and review notes, undertake relevant readings and attempt all homework tasks before attending the tutorial. Tutorials provide an opportunity to discuss concepts and ideas, receive feedback on attempted homework tasks, and be involved in group-based problem-solving exercises and case studies. Online quizzes will be conducted periodically throughout the semester. These quizzes form part of the students’ overall assessment mark. Quizzes are designed to test the fundamental concepts of a topic that are required for students to actively participate in tutorial activities. Discussion Board: Extensive use is made of the Canvas Discussion Board to answer student enquiries. Self-directed study: Students will be required to undertake self-directed study in order to successfully engage in seminar discussions, in-class exercises and computer-based tasks. Animated videos and textbook resources are made available online to help students with their study. Formative preparation guides are also provided for selected topics.

Content (topics) Business processes Systems documentation Product costing systems Approaches to allocating overheads Cost behaviour and cost estimation Budgeting and variance analysis Environmental and social management accounting Database management systems

Program Week/Session

Dates

Description

Workshop 1

24 Feb 2021

Topic 1: Introduction to Cost Management Systems Course overview Introduction to management accounting systems Cost terms and concepts Cost flow in organisations Cost accounting systems in specific industries Readings: Eldenburg et al., Chapters 1 and 3 Notes: No tutorial this week

Workshop 2

3 March 2021

Topic 2: Cost Behaviour, Cost Drivers and Cost Estimation Basic cost terminology (cost pools, cost drivers, cost objects) Basic cost behaviour patterns (fixed cost, variable cost, mixed cost) The cause and effect criterion in choosing cost drivers Qualitative cost estimation techniques: Industrial engineering, conference method, account analysis Quantitative cost estimation techniques: High-low, regression analysis Readings: Eldenburg et al., Chapter 2 Notes: Tutorial 1: Introduction to Cost Management Systems

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Workshop 3

10 March 2021

Topic 3: Product Costing Systems - Job Costing Costs across the value chain and incurrence Measures of cost Conventional product costing systems Job costing Accounting for overheads (plantwide method) Readings: Eldenburg et al., Chapters 3 and 7 Quiz 1 will cover this topic and will be available online (Canvas site) from 9am Friday March 19 to 11pm Monday March 22. Notes: Tutorial 2: Cost behaviour, cost drivers and cost estimation

Workshop 4

17 March 2021

Topic 4: Product Costing Systems - Process Costing Overview of process costing Process costing with WIP Equivalent units Steps to process costing Inventory costing methods Weighted Average, FIFO) Other issues in process costing Readings: Eldenburg et al., Chapter 8 Notes: Tutorial 3: Product Costing Systems - Job Costing

Workshop 5

24 March 2021

Topic 5: Overhead Costing - Traditional Review of cost allocation concepts Methods of cost allocation Review of plantwide method Departmental method with production departments Departmental method with support departments (direct, step and reciprocal methods) Readings: Eldenburg et al., Chapter 3 Notes: Tutorial 4: Product Costing Systems - Process Costing

Workshop 6

31 March 2021

Topic 6: Overhead Costing - Activity Based Costing Problems with conventional costing Refining a cost system Activity analysis Activity-based costing Traditional versus ABC approaches to designing a costing system Other issues with ABC Readings: Eldenburg et al., Chapter 12 Quiz 2 will cover this topic and will be available online (Canvas site) from 9am Friday April 16 to 11pm Monday April 19. Notes: Tutorial 5: Overhead Costing - Traditional

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Stuvac week

7 April 2021

Mid-Semester STUVAC week Notes: No classes this week

Workshop 7

14 April 2021

Topic 7: Environmental and Social Management Accounting Views on sustainability Corporate social responsibility (CSR) External reporting (Tripple Bottom Line, Key Performance Indicators) Internal reporting (The Balanced Scorecard, Environmental cost reports) Benefits and difficulties of CSR Readings: Eldenburg et al., Chapters19 and 21 Notes: Tutorial 6: Overhead Costing - Activity Based Costing

Workshop 8

21 April 2021

Group Assignment - Group Presentation Notes: Further details about the content of group presenation will be provided on UTS Online (Canvas)

Workshop 9

28 April 2021

Topic 8: Standard Costing and Variance Analysis Static versus flexible budgets Flexible budget variances Variance analysis for direct costs Variance analysis for overhead costs Responsibility for variances Readings: Eldenburg et al., Chapters 10 and 11 Quiz 3 will cover this topic and will be available online (Canvas site) from 9am Friday May 7 to 11pm Monday May 10. Notes: Tutorial 7: Environemtal and Social Management Acocunting

Workshop 10

5 May 2021

Topic 9: Business Processes and Systems Documentation Business processes and strategy Systems documentation Use of spreadsheets to support cost accounting analysis and decision making Readings: Eldenburg et al., Chapters 1 and 4 Notes: Tutorial 8: Standard Costing and Variance Analysis

Workshop 11

12 May 2021

Topic 10: Database Management Systems Introduction to database management systems Database design Relational databases Use of databases to support cost accounting analysis and decision making Readings: Online resources on Canvas

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Notes: Tutorial 9: Business Processes and Systems Documentation

Workshop 12

19 May 2021

Course Review Outline of final examination topics and structure Notes: Tutorial 10: Database Management Systems

Supplements to Subject Outline There are two supplements attached to this subject outline: 1. Tutorial and Revision Guide 2. Tutorial Work Activities

Additional information There are four components to the teaching and learning process of this subject: 1. 2. 3. 4.

Lectures (on-campus and pre-recorded) Online Q&A Sessions Tutorials (on-campus and online) UTS Canvas

Lectures provide an overview of each topic and a general understanding of the relevant theoretical concepts. These concepts will be explained through real world examples and practical problems. Q&A sessions allow students to review lecture notes, clarify their understanding of core concepts presented in the lecture and debate practical issues. Tutorials allow students to receive feedback on attempted homework tasks, review homework problems, and be involved in group-based problem solving exercises and case studies. UTS Online (Canvas) can be accessed at http://online.uts.edu.au (select Canvas login) and will be the learning management system used for conducting online assessments and providing students with assessment feedback via the Discussion Board and GradeCentre. UTS Online will be the main communication platform and regular subject-related content and announcements will be posted here. Additional Teaching & Learning Strategies: An aim of this subject is to help you develop academic and professional language and communication skills to succeed at university and in the workplace. During the course of this subject, you will complete a milestone assessment task that will, in addition to assessing your subject-specific learning objectives, assess your English language proficiency. U:PASS U:PASS (UTS Peer Assisted Study Success) is a voluntary “study session” where you will be studying the subject with other students in a group. It is led by a student who has previously achieved a distinction or high distinction in that subject, and who has a good WAM. The leader will typically prepare questions for you to work on, or if you have specific questions or things you’re not clear on, you can bring them along, and the leader will get the group to work on that. It’s really relaxed, friendly, and informal. Because the leader is a student just like you, they understand what it’s like to study the subject and how to do well, and they can pass those tips along to you. Students also say it’s a great way to meet new people and a “guaranteed study hour”. You can sign up for U:PASS sessions in My Student Admin https://onestopadmin.uts.edu.au/. You’ll find it listed in the area where you sign up for lectures, tutorials, etc. Note that sign up is not open until week 1, as it’s voluntary and only students who want to go should sign up. Note that you don’t have to be struggling in the subject to attend U:PASS – frequently students who are already doing well will do even better after attending U:PASS. If you have any questions or concerns about U:PASS, please contact [email protected]. or check out the website: http://www.uts.edu.au/current-students/support/upass/upass Georgina at

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Assessment Multiple Choice Exams (15%) Group Assignment (25%) Final Exam (60%) Assessment task 1: Multiple Choice Quizzes (Individual) Objective(s): This addresses subject learning objective(s): 1 and 2 Weight:

15%

Task:

Multiple choice quizzes covering specific subject topics will be conducted throughout the semester. There are three separate multiple choice question quizzes. The grade for this assessment will be the average of the two best quiz marks. Students will have only one opportunity to take each quiz. Failure to sit a quiz will result in a zero grade for that quiz. There are no supplementary exams for missed quizzes. Further details about the structure and due date of quizzes will be provided on the Canvas site.

Length:

Students will have 40 minutes from the time of starting the quiz to answer 10 questions. At the end of 40 minutes the answers will be automatically submitted.

Further Quizzes are designed as a formative task for students to assess their degree of understanding of a topic. Quizzes information: cover the basic concepts and practical applications of a topic that are necessary for completing class preparation work as well as in-class problems. Once the quiz due date has passed students receive their mark and feedback through UTS Online. Further feedback is provided by tutors in-class and through the discussion board on UTS Online.

Assessment task 2: Assignment (Group) Objective(s): This addresses subject learning objective(s): 1 and 3 Weight:

25%

Task:

This assessment is a practice-based group assignment. Details of the assignment will be provided on the Canvas site. This assessment is to be completed in groups of three or four students. Group members must be enrolled in the same tutorial.

Due:

Assessment due date will be provided on UTS Online.

Further The assignment is designed to provide students experience in addressing a real-world problem by applying cost information: accounting concepts and processes. Students will be provided written feedback by their tutor.

Assessment task 3: Final Exam (Individual) Objective(s): This addresses subject learning objective(s): 1, 2, 3 and 4 This addresses program learning objectives(s): 4.2 Weight:

60%

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Task:

This assessment covers all topics in the subject. Students will be examined through problem-based questions that have both calculation and short-answer theory components. This task includes a milestone assessment component that evaluates English language proficiency. You may be guided to further language support after the completion of this task/subject if your results in this milestone task indicate you need more help with your language skills. This task includes a milestone assessment component that evaluates English language proficiency. You may be guided to further language support after the completion of this subject if your results in this milestone task indicate you need more help with your language skills.

Length:

Duration: 2 hours

Due:

Formal Examination Period - Exact date and time TBA.

Further Examinations will be centrally-conducted under University examination conditions, and hence thoroughly address information: concern regarding secure assessment. Please review the conditions for centrally-conducted exams: https://www.uts.edu.au/current-students/managing-your-course/classes-and-assessment/exams Failure to sit the exam at the formally designated time may result in failure of the course, unless you comply fully with the SAU special consideration procedure. Please consult the website following for detail on the acceptable conditions and relevant procedures for alternative examinations: https://www.uts.edu.au/current-students/managing-your-course/classes-and-assessment/exams/alternative-examinatio

Examination material or equipment All examinations are closed book, and only non-programmable calculators are allowed.

Minimum requirements Students must achieve at least 50% of the subject’s total marks.

Required texts Leslie G. Eldenburg, Albie Brooks , Judy Oliver, Gillian Vesty, Rodney Dormer , Vijaya Murthy , Nick Pawsey , Management Accounting, 4th Edition, John Wiley and Sons. Print ISBN : 9780730369387 | Digital ISBN : 9780730369424

Academic liaison officer Dr Robert Czernkowski, Accounting Discipline Group, telephone 9514 3736 Dr Mario Fiorini, Economics Discipline Group, telephone 9514 3339 Dr Otto Konstandatos, Finance Discipline Group, telephone 9514 7758 Dr Kyuseop Kwak, Marketing Discipline Group, telephone 9514 3150 Associate Professor Nico Schulenkorf, Management Discipline Group, telephone 9514 5368 Any arrangements should be negotiated within the first six weeks of session.

Support Student Services Unit/Counselling: Student Services provides a range of free and confidential professional services to support different aspects of your life and learning at UTS. These services include counselling for personal and learning problems or issues. If you are experiencing difficulties with your overall study program, for whatever reason, telephone +61 2 9514 1177 (City campus). The Accessibility and Financial Assistance Service:The Accessibility Service can support students with disabilities, medical or mental health conditions, including temporary injuries (e.g., broken limbs). The Accessibility Service works with Academic Liaison Officers in each Faculty to provide ‘reasonable adjustments’ such as exam provisions, assistive technology, requests and strategies for managing your studies alongside your health condition. If you’re unsure whether you need assistance, we recommend getting in touch early and we can provide advice on how our service can assist you. Make an appointment with an Accessibility Consultant (AC) on +61 2 9514 1177 or [email protected]. The Financial Assistance Service can assist you with financial aspects of life at university, including Centrelink information, tax returns an...