Goal of the course:
This course is a basic introduction to management accounting. The introductory chapter discusses task and purpose of management accounting in the larger framework of general accounting and provides an overview of the field. Chapter 2 we assign cost to cost-objects / products and different costing methods are studied. The focus is on process costing, equivalent unit costing and job costing as well as the calculation of co-products.
The next part deals with the distribution of indirect cost to cost centres in the framework of cost-centre accounting and evaluates different methods. After a short introduction to task and purpose of cost-type accounting, the course introduces in chapter four different methods for recording and measuring most important cost-types. Material valuation, depreciation, personnel cost, imputed interest and risk is covered in detail. Chapter 5 assesses typical cost functions and methods to determine them. Chapter 6 introduces total cost accounting and cost of sales accounting to determine the balance per period. We differentiate between full cost and direct cost and emphasize the differences between single-stage and multi-stage contribution costing. Chapter 7 discusses break-even analysis. This methods answers the question how many products need to be sold to reach break-even and which products should be procured elsewhere. The last chapter provides examples how management accounting is used for decision making in firms.