UNIVERSITY OF DAR ES

SALAAM
BUSINESS SCHOOL
DEPARTMENT OF ACCOUNTING
P.O. Box 35046, Dar es Salaam
TANZANIA

AC 301: ADVANCED COST AND MANAGEMENT ACCOUNTING

COURSE OUTLINE

1. STAFFING

Main course instructors:

1 Ms. Latifa Mbelwa

2 Dr. Mussa J Assad

2. PRE-REQUISITE[S]

To qualify for registration for this course one should have taken and passed AC
200: Managerial Accounting I and AC 202: Managerial Accounting II. An
assumption is also made regarding prior formal exposure to quantitative
techniques in managerial decision making perspectives.

3. INTRODUCTION

This final year undergraduate course is a fundamental course. It is a course that

is targeted at advanced students needing to sharpen cost accounting skills for
the purpose of business decision making and control. Beyond that the course
will prepare students to progress to and access other core courses of the MBA
programme as well as professional qualifications such as Certified Public
Accountancy [CPA].

4. COURSE OBJECTIVES

Following are objectives of the course:

1. To develop an understanding of the concepts and ideas behind cost

accounting.
2. To develop skills in application of cost accounting techniques.
3. To support and encourage education and learning, and foster the capacity for
individual study.

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4. To encourage and facilitate critical, analytical thinking as a foundation for
subsequent academic study, employment and personal development.
5. Develop active learning and self-assessment skills.

5. OUTCOMES

At the end of this course students will be able to:

i. Understand the concepts of value of information in both perfect and

imperfect forms
ii. Appreciate the alternative approaches to risk appraisal in the decision
making process
iii. Understand the role of linear programming and theory of constraints in
managerial decision making
iv. Understand the main issues of transfer pricing in decentralised
companies.
v. Recognise that the aim of accounting, as with other forms of
communication, is to influence behaviour and that, when incorrectly
handled, cost accounting can be seriously damaging to the achievement
of organisational goals.
vi. Consider some recent theoretical approaches that have been promoted in
response to recent changes in organisations, and to locate these
developments in the wider organisational settings.

6. COURSE DELIVERY

(a) Lectures
Lectures will be given each week as follows:
Thursday 18.00 - 20.00; Mwalimu Nyerere Theatres 2, Mlimani Main
Campus.

(b) Seminars
Seminars are intended to facilitate increased problem solving interaction
with a seminar leader. Normally this involves students interacting with a
seminar leader in smaller groups. Register for a seminar as indicated in
the teaching timetable.

(c) Quizzes
These are short unprogrammed questions given to students during
lectures which have to be answered in a few minutes. Quizzes test the
understanding of the basic concepts introduced in earlier lectures. They
account for 15% of your final assessment.

(d) Assignments
Sometimes the Course Instructor may give assignments, usually to be
handed in by a specified date and time. These may also contribute
towards a student’s final assessment, at the discretion of the Course
Instructor.

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7. COURSE CONTENTS

Topic Details
1 Cost and Management Accounting Perspective
The Nature of Cost Accounting
Cost Terms, Purpose and Behaviour
History and Future of Management Accounting

2 Costing Systems and Analyses

Actual Costing
Normal Costing
Target Costing
Activity Based Costing and Management
Customer Profitability Analysis
Value Chain Analysis

3 Cost Estimation Techniques

Account Analysis
Engineering Method
Scatter Diagram Method
Regression Analysis
Learning Curve Method

4 Information for Decision Making

Decision Making and Relevant Information
Pricing Decisions

5 Tools for Planning and Control

Budgeting
Activity Based Budgeting
Zero Based Budgeting
Planning Programming Budgeting System
Kaizen Budgeting
Human Aspects of Budgeting
Advanced Variance Analysis and Investigation
Material Mix, Yield and Price Variances
Labour Mix and Yield Variances
Sales Mix and Quantity Variances
Variance Investigation and Reporting

6 Application of Quantitative Methods in Cost Accounting

Linear Programming Models
Inventory Control Techniques

7 Performance Measures in Decentralised Organizations

Types of Measures
Transfer Pricing in Decentralised Organisations
Balanced Scorecard
Performance Measure and Employees’ Compensation

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 Topic Details
8 Current Issues in Management Accounting
Globalization and International Convergence of Management
Accounting
Interactions between Modern IT and Management Control
Ethics in Management Accounting
Management Accounting and Accountants in Public Sector
Throughput Accounting
Backflush Costing
Six Sigma

8. ASSESSMENT

Coursework
Semester Test 25%
Quizzes and Assignment 15%
Total coursework assessment 40%
Semester University 60%
Examination
TOTAL 100%

9. NOTES TO STUDENTS

Here are some points that may help you to appreciate Instructors’ attitude
towards this course:
i. The paramount objective is: to achieve the conceptual insights
necessary to predict the financial consequences of management
decisions that you may take or be involved in.
ii. I can always think of more to do than there are hours in the day. So
let’s agree that we need to be urgently efficient concerning our use of
this most limited of resources. However, there is simply insufficient
classroom time to run detailed “number crunching” tutorials. Network
for help!
iii. Be prepared! The lectures are not to be regarded as some kind of TV
talk show with you as audience passively listening to an articulate guru
debating the issues with a panel of experts. The classroom sessions are
fast paced and you will only learn by actively preparing yourself.
iv. Take responsibility for getting your learning! This is a complex subject
and it is a mistake to imagine that all your learning will take place in
the lectures. The importance of adequate, out-of-classroom homework,
done in advance, cannot be exaggerated. Do the readings, meet and
discuss the issues in your study groups, attempt the assignments. This
is about understanding by doing.
v. Moreover, there is an inexorable logic progression through the work
and you will not succeed by an eclectic approach as to which bits you
choose to attend to and which not. Unlike less demanding subjects, if
you miss out on the kick-off you will find it difficult following the rest of
the game.
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 vi. Plagiarism is not acceptable! You will not learn nor can I judge progress
from work that is not your own!
vii. Handwritten work is not acceptable. I expect that assignments will be of
a business standard, meaning that I expect you to demonstrate your
computer skills. MS Word and MS Excel are both available in the Faculty
Computer Lab. I try to spell correctly and I expect that you will too.
Refer to a dictionary and remember to run MS Word’s spell checker
before printing!

10. REFERENCE MATERIALS

REQUIRED READINGS
1. Horngren, C.T., Sundem, G. L., Straton, W. O., Schatzberg, J., Burgstahler, D.
(2007) Introduction to Management Accounting, 14th Ed., Pearson Higher
Education

RECOMMENDED SUPPLEMENTARY READINGS

2. Drury, C., (2000) Management and Cost Accounting, London: Thompson
Business Press, 5th Edition.
3. Garrison, R., Noreen, E. (2003) Managerial Accounting, 10th Ed., McGraw-Hill.
4. Horngren et al., (2002) Management and Cost Accounting, Second Edition,
Prentice Hall.
5. Kaplan, R.S., Atkinson, A., (1998) Advanced Management Accounting,
Prentice Hall, 3rd Edition.

ARTICLES AND RESEARCH PAPERS

There will be references to journal articles for each topic separately, some of
these are indicated in the teaching plan. Yet, you are strongly encouraged to
supplement the readings yourself by seeking out books and articles that seem
relevant or interesting. The following journals are particularly useful and may be
available on-line (through University Library homepage): Management
Accounting, Management Accounting Research, Accounting Organisation and
Society, Accounting, Auditing and Accountability Journal.

11. WEB-BASED LEARNING RESOURCES

You will be able to access lecture presentations on PowerPoint format after

delivery and other backup material using the Internet. You will however need to
sign on the University internet site http://www.teil.udsm.ac.tz to be allowed
access. You will also have to register electronically on the course to gain access
to the course contents.

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