Managerial accounting caters to the internal needs of a firm
by providing relevant data for decision making as opposed to Financial
accounting that furnishes information to investor about the firm’s performance
during a given period of time. Managerial accounting is futuristic in its
orientation since its concern is decision making, specifically it is used by
management to plan, evaluate and control business operations and performance.
This course covers the framework of managerial accounting, cost classification
and allocation, Cost, Volume, Profit and operating leverage, Budget and
budgetary planning, standard costing and operating leverage, flexible budget
for controlling manufacturing overheads and relevant cost for decision making.
0.1 Working through this course
This course, management accounting expects you to do a lot of reading and practicing, in order to cover the materials in the course material. This means that you should devote much time to this course by reading through this material and getting more information from numerous texts and journals. These abound in every library and from the internet. The course material has been made easy to read and user-friendly. You will need to work in groups with other students in order to discuss, compare notes and thoughts as well as to exchange and share ideas.
0.2 Learning outcomes
This course was designed to achieve the following objectives:- Understand managerial accounting and how it helps management
- Understand the difference between management accounting, financial accounting.
- Discuss about element of cost in manufacturing business and explaining them
- Discuss about element of cost in manufacturing business and explaining them
- Define the budget and the purpose served by budgeting.
- Discuss about the the essentials of a sound system of budgeting
- Prepare various types of budgets
- Discuss about elements of cost in manufacturing business and explaining them
- Define break-even point and know how to compute it
- Explain the significance of classifying manufacturing overheads as fixed, variable and semi-variable and their behavior.
- Discuss the utility of standard costing and prerequisites for a sound variance analysis.
- Discuss the use of flexible budgeting in planing and controlling costs.
- Explain the logic in using contribution approach in pricing decision with examples

- Teacher: Dr François Xavier NIYIBIZI