5. Variance Analysis: All sections.
Week 7: Information for Planning and Control III: Management of Working Capital
Examines the working capital cycle and the requirements for working capital for different types of businesses. Discussion will focus on methods for achieving control over elements of working capital (e.g. stock, cash, debtors, creditors).
Required Reading: *Accountancy (1998) "Keypoints: Practical Tips for Controlling Debtors", Accountancy, September, p. 167.
*Atrill, P. and McLaney, E. (1999) Financial Accounting for Non-Specialists, 2nd Edition, Prentice Hall, Example: Alexis plc, p. 186-189, 204-211, 227-228.
*Drury, C. (2004) Management and Cost Accounting, International Thomson Business Press, 6th Edition, Chapter 25.
Further Reading: A&M Chapter 9
McWatters, L., Morse, D. and Zimmerman, J. (2001) Management Accounting. Analysis and Interpretation, 2nd
Ed, McGraw Hill, p 434-437.
EQL: 3. Budgeting ? 1: Sections: 10 - 11.
Week 8: Information for Planning and Control IV: Performance Measurement, Motivation and Behavioural Aspects of Accounting Systems
Considers the measurement of performance in an organisation and the increasing use of nonfinancial measures for performance assessment. The limitations of performance measurement and the consequences of performance measurement will be considered.
Required Reading: Drury Chapter 11
*Peters, R. and Gillon, P. (1999) "Why Did the Chicken Cross the Road?" Accountancy, February, p.104-105
Supplementary Reading: A&M Chapter 6 pp 149 ? 151, Chapter 7 pp 201 ? 204
*Fisher, L. (2003) "Index Fingers Bad Behaviour", Accountancy, May, p. 58 ? 60.
*Geiring, M. (1999) "Activity Based Costing and Performance Improvement", Management Accounting, March, pp. 24 ? 25.
Handy, C. (1999) Understanding Organisations, Penguin Books, 4th Edition, Chapter 2: On the Motivation to Work.
Hilton, R.W. (2002) Managerial Accounting: Creating Value in a Dynamic Business Environment, 5th Ed, McGraw Hill, pp. 248-253.
*Watts, J. (1996) Accounting in the Business Environment, 2nd Ed, Pitman Publishing, Chapter 19: Accounting Organisations and Behaviour.
EQL: 3. Budgeting ? 1: Section: 4
Week 9: Recent developments in Management Accounting
Considers the role and purpose of management accounting in the organisation and will discuss the criticisms of traditional management accounting. It will also examine the recent developments in managerial accounting and manufacturing practice, and the reasons for their development.
Required Reading: Drury Chapter 15
*Blyth, A. (2005) "Finding the Measure", Accountancy, February, pp. 28 ? 29.
*Fanning, J. (2000) "Evolution or Revolution", Accountancy, October, p 60-61
*FT Understanding Performance Management" 6th October 2004 www.ft.com/performancemanagement
*Gurton, A. (1999) "Bye Bye Budget...", Accountancy, March, p.60.
*Partridge, M. and Perren, L. (1997) "Winning Ways with a Balanced Scorecard", Accountancy, August, p.50-51.
Supplementary Reading: A&M Chapter 5 pp 133 ? 136, Chapter 11
*Fisher, L. (2002) "One Step Beyond", Accountancy, March, pp. 32 - 34.
*Hope, J. and Fraser, R. (1999) "Take it Away", Accountancy, May, pp. 66 - 67
Hilton, R.W. (2002) "Justification of Investments in Advanced Manufacturing Systems", Managerial Accounting. Creating Value in a Dynamic Business Environment, 5th Edition,
McGraw Hill, pp 721 ? 723.
*Hope, T. (2000) "Conflict Resolution", Accountancy, November, p.64-65.
*Parry, K. (2006) "Where Does All the Money Go?" Accountancy, May, pp. 50 ? 51.
EQL: 4. Budgeting ? 2: Section: 8
Week 10: Strategic Management Accounting
Examines the role of Strategic Management Accounting in business and considers how a focus externally as well as internally is important for corporate success.
Required Reading: Drury Chapter 16
*Grundy, T. (2005) "Finding the Ingredients for Survival", Accountancy, April, pp. 66-68.
*Newing, R. (1994) "Benefits of a Balanced Scorecard", Accountancy, November pp. 52 ? 53
Supplementary Reading *Thorne, K. and Smith, M. (2000) "Competitive Advantage in World Class Organisations", Management Accounting:
Magazine for Chartered Management Accountants, Vol. 78, Issue 3, March, p. 22 ? 26.