MONASH Y1S2
ACW2220
Management accounting 1
(NOTES)
Online Quiz 1 5%
Online Test 1 10%
Assignment 10%
Online Test 2 10%
Online Quiz 2 5%
Final Exam 60%
,Content Table
Week 1
The manager and management accounting -
(24/07/23 – 30/07/23)
Week 2
An introduction to cost terms and concepts -
(31/07/23 – 06/08/23)
Week 3
Determining how costs behave -
(07/08/23 – 13/08/23)
Online Quiz 1
Week 4
Job costing (5%)
(14/08/23 – 20/08/23)
[16/08/23]
Week 5
Process costing and the spoilage -
(21/08/23 – 27/08/23)
Week 6
Allocation of support department costs -
(28/08/23 – 03/09/23)
Week 7
Activity-based costing -
(04/09/23 – 10/09/23)
Online Test 1
(10%)
Week 8 [13/09/23]
Absorption and the marginal costing
(11/09/23 – 17/09/23) Assignment
(10%)
[15/09/23]
Week 9
Cost-volume-profit analysis -
(18/09/23 – 24/09/23)
Mid-Semester Break
- -
(25/09/23 – 01/10/23)
Online Test 2
Week 10
Decision-making and the relevant information (10%)
(02/10/23 – 08/10/23)
[04/10/23]
Online Quiz 2
Week 11
Pricing decision (5%)
(09/10/23 – 15/10/23)
[11/10/23]
Week 12
- -
(16/10/23 – 22/10/23)
Revision Week
- -
(23/10/23 – 29/10/23)
Final Exam
Final Exam Week
- (60%)
(30/10/23 – 08/11/23)
[06/11/23]
,Week 1: The manager and management accounting
1. Financial accounting vs management accounting:
Financial accounting Management accounting
Focuses on measuring and reporting Focuses on measuring, analysing, and
financial information to external parties such reporting financial and non-financial
as banks, investors, governmental agencies, information related to the costs of acquiring
and suppliers, based on GAAP or using resources in an organisation
The purpose of the information is to
The purpose of the information is to help managers to make better
communicate an organisation’s decisions to fullfill organisational goals
financial position to external parties and improve the efficiency and
effectiveness of existing operations
The primary users are external parties The primary users are managers
The focus and emphasis are past-oriented The focus and emphasis are future-oriented
The information does need to be
prepared in accordance with GAAP The information does not need to be
and be certified by external and prepared in accordance with GAAP
independent auditors
2. Although management accounting’s information does not need to be prepared in accordance
with GAAP, the information does need to be prepared with these three guidelines:
Behavioural and technical Different costs for
Cost-benefit approach
considerations different purposes
Benefits of a purchase Managers use alternative
People are involved in
or action generally ways to compute costs
making decisions, not
must exceed costs as in different decision-
just dollars and cents
a basic decision rule making situations
3. Management accounting’s information helps managers to formulate strategy by specifying how
the organisation could match its own capabilities with the opportunities in the marketplace
through answering these four questions:
• Who are our most important customers and what critical capability do we have to be
competitive and deliver value to our customers?
• What is the bargaining power of our customers or suppliers?
• What substitute products exist in the marketplace and how do they differ from our products
in terms of features, price, cost, and quality?
• Will adequate cash be available to fund the strategy, or will additional funds need to be
raised?
4. Types of strategy:
Cost leadership strategy Product differentiation strategy
The organisation’s ability to achieve lower
The organisation’s ability to offer
costs relative to other competitors through
products that are superior and unique
efficiency and productivity improvements,
relative to other competitors
elimination of waste, and tight cost control
, 5. Value chain:
• Research and development
• Design of products and processes
• Production
• Marketing
• Distribution
• Customer service
6. Five-step decision-making process:
• Identify the problem and uncertainties
• Obtain information
• Make predictions about the future
• Make decisions by choosing among alternatives
• Implement the decision, evaluate performance, and learn
7. [MGW1010] Functions of management:
• Planning
• Organising
• Leading
• Controlling
8. [ACW2220] Planning decisions vs controlling decisions:
Planning decisions Controlling decisions
Selecting organisation goals and
Taking actions that implement the
strategies, predicting results under
planning decisions, evaluating
various alternative ways of achieving
performance, and providing feedback
those goals and strategies, deciding
and learning to the organisation
how to attain the desired goals, and
for future decision-making
communicating this to the organisation
ACW2220
Management accounting 1
(NOTES)
Online Quiz 1 5%
Online Test 1 10%
Assignment 10%
Online Test 2 10%
Online Quiz 2 5%
Final Exam 60%
,Content Table
Week 1
The manager and management accounting -
(24/07/23 – 30/07/23)
Week 2
An introduction to cost terms and concepts -
(31/07/23 – 06/08/23)
Week 3
Determining how costs behave -
(07/08/23 – 13/08/23)
Online Quiz 1
Week 4
Job costing (5%)
(14/08/23 – 20/08/23)
[16/08/23]
Week 5
Process costing and the spoilage -
(21/08/23 – 27/08/23)
Week 6
Allocation of support department costs -
(28/08/23 – 03/09/23)
Week 7
Activity-based costing -
(04/09/23 – 10/09/23)
Online Test 1
(10%)
Week 8 [13/09/23]
Absorption and the marginal costing
(11/09/23 – 17/09/23) Assignment
(10%)
[15/09/23]
Week 9
Cost-volume-profit analysis -
(18/09/23 – 24/09/23)
Mid-Semester Break
- -
(25/09/23 – 01/10/23)
Online Test 2
Week 10
Decision-making and the relevant information (10%)
(02/10/23 – 08/10/23)
[04/10/23]
Online Quiz 2
Week 11
Pricing decision (5%)
(09/10/23 – 15/10/23)
[11/10/23]
Week 12
- -
(16/10/23 – 22/10/23)
Revision Week
- -
(23/10/23 – 29/10/23)
Final Exam
Final Exam Week
- (60%)
(30/10/23 – 08/11/23)
[06/11/23]
,Week 1: The manager and management accounting
1. Financial accounting vs management accounting:
Financial accounting Management accounting
Focuses on measuring and reporting Focuses on measuring, analysing, and
financial information to external parties such reporting financial and non-financial
as banks, investors, governmental agencies, information related to the costs of acquiring
and suppliers, based on GAAP or using resources in an organisation
The purpose of the information is to
The purpose of the information is to help managers to make better
communicate an organisation’s decisions to fullfill organisational goals
financial position to external parties and improve the efficiency and
effectiveness of existing operations
The primary users are external parties The primary users are managers
The focus and emphasis are past-oriented The focus and emphasis are future-oriented
The information does need to be
prepared in accordance with GAAP The information does not need to be
and be certified by external and prepared in accordance with GAAP
independent auditors
2. Although management accounting’s information does not need to be prepared in accordance
with GAAP, the information does need to be prepared with these three guidelines:
Behavioural and technical Different costs for
Cost-benefit approach
considerations different purposes
Benefits of a purchase Managers use alternative
People are involved in
or action generally ways to compute costs
making decisions, not
must exceed costs as in different decision-
just dollars and cents
a basic decision rule making situations
3. Management accounting’s information helps managers to formulate strategy by specifying how
the organisation could match its own capabilities with the opportunities in the marketplace
through answering these four questions:
• Who are our most important customers and what critical capability do we have to be
competitive and deliver value to our customers?
• What is the bargaining power of our customers or suppliers?
• What substitute products exist in the marketplace and how do they differ from our products
in terms of features, price, cost, and quality?
• Will adequate cash be available to fund the strategy, or will additional funds need to be
raised?
4. Types of strategy:
Cost leadership strategy Product differentiation strategy
The organisation’s ability to achieve lower
The organisation’s ability to offer
costs relative to other competitors through
products that are superior and unique
efficiency and productivity improvements,
relative to other competitors
elimination of waste, and tight cost control
, 5. Value chain:
• Research and development
• Design of products and processes
• Production
• Marketing
• Distribution
• Customer service
6. Five-step decision-making process:
• Identify the problem and uncertainties
• Obtain information
• Make predictions about the future
• Make decisions by choosing among alternatives
• Implement the decision, evaluate performance, and learn
7. [MGW1010] Functions of management:
• Planning
• Organising
• Leading
• Controlling
8. [ACW2220] Planning decisions vs controlling decisions:
Planning decisions Controlling decisions
Selecting organisation goals and
Taking actions that implement the
strategies, predicting results under
planning decisions, evaluating
various alternative ways of achieving
performance, and providing feedback
those goals and strategies, deciding
and learning to the organisation
how to attain the desired goals, and
for future decision-making
communicating this to the organisation
