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Accounting for management BA1020

This module provides an introduction to accounting. The module includes material on financial reporting, management accounting and finance.​

It is suitable for two types of student: 

  • ​those who expect to become managers and who will therefore need to use accounting reports for decision-making
  • those who intend to specialise in accounting later. 

Topics covered

  • ​Provides an introduction to the subject of accounting. The topic also explains that accounting is split into two distinct areas: financial and management accounting.
  • Examines the main types of financial statements presented.
  • Builds on our study of the basics of financial statements.
  • Looks at the definition and measurement of liabilities. 
  • Studies the different types of income and expenses, and how they are presented in income statements. 
  • Examines the recording of transactions by double entry book-keeping. 
  • Cash flow statements, as prepared under IFRS. 
  • Rules on how to do accounting.
  • Contents of an-nual reports, at the purpose of the audit report, and at the types of financial statements provided by companies.
  • Interpreting balance sheets and income statements in a comparative way. 
  • ​How to choose between various possible courses of action, and how to make decisions when some inputs (e.g. specialised labour) is in restricted supply.
  • Budgeting and master budgets.
  • The system of standard costing.
  • Spending on capital projects.
  • Net present value and internal rate of return. 

Learning outcomes

  • Research accounting information using the library and company web pages
  • Explain the importance of accounting information to business and society
  • Prepare and explain the significance of the Profit and Loss Account, Balance Sheet and Cash Flow Statement
  • Interpret financial accounting information - using ratio analysis
  • Understand management accounting as a tool for planning, decision-making and control
  • Describe the behaviour of costs
  • Understand the relationships between costs, volume and profit
  • Prepare budgets and construct a cash flow forecast
  • Explain the management of working capital
  • Demonstrate an ability to understand the fact that accounting information is constructed within variable social and institutional conditions


This module is assessed by a three hour unseen written examination.

Essential reading

The following is provided as part of the course materials after you register:

  • Accounting: an Introduction (McLaney & Atrill)
  • Financial Accounting: An International Introduction (Alexander & Nobes)

Taster study material