Accounting for Decision Making and Control

Singapore University of Social Sciences

Accounting for Decision Making and Control (ACC210)

Synopsis

ACC210 Accounting for Decision Making and Control builds upon the foundation established in ACC203e and focuses on the use of accounting information for planning, control and decision making within organisations. In this course, students will acquire decision making tools such as variance analysis, cost-volume-profit analysis, relevant costing and incremental analysis. In addition, this course will cover the use of standard costing and capital budgeting for planning and control purposes. While the bulk of this course still pertains to the “decision-facilitating” role of accounting, students will be introduced to the “decision-influencing” role of accounting through discussions of behavioural implications of standard costing.

Level: 2
Credit Units: 5
Presentation Pattern: EVERY JAN

Topics

Methods to Develop Budgets
Standard Costing
Sales and Direct Cost Variances
Indirect Cost Variances
Behavioural Implications of Standard Costing
Full Costing Versus Variable Costing
Cost-Volume-Profit Analysis
Relevant Costing and Incremental Analysis
Capital Budgeting
Sensitivity Analysis in Short Term & Capital Budgeting Decisions

Learning Outcome

Compare the differences arising from using full versus variable costing for product or service costing.
Apply cost-volume-profit analysis for managerial decisions-making.
Use the concepts of relevant costing and incremental analysis for making short-term resource allocation decisions.
Employ various cost estimation methods to generate outputs for the budgeting process.
Explain how and why standard costing is used for product and service costing.
Interpret sales and direct cost variances, and propose appropriate managerial actions.
Calculate and interpret indirect cost variances for performance evaluation.
Discuss potential behaviours of managers arising from the use of standard costing.
Compute various expected performance measures, of potential investments, to make capital budgeting decisions.
Analyse different scenarios to make short-term allocation and capital budgeting decisions under uncertainty.
Develop the essential knowledge and interpersonal skills to work effectively in a team.
Demonstrate proficiency in written and verbal communication skills.