BB210 - Introductory Management Accounting

Credit Points: 15

Prerequisite: BB104 Introductory Accounting

Co-requisite: N/A

Workload: 36 contact hours

Campus: Melbourne, Sydney

Aims & Objectives

This is a first‐year core unit offered in the Bachelor of Business program. The unit provides a pathway for students to continue on with a major in Accounting, Marketing or Management.

This unit provides students with tools to aid decision making by managers and marketers. Its aim is to provide students with knowledge about some of the processes and technologies that enable the effective and efficient use of organisational resources by management to enhance the value of the organisation to shareholders and other stakeholders such as government. Management accounting is concerned with the future, operates under varying time frames and has no set of rules. Global competition, advances in information and other technology and changes in the economic environment leaves managers needing management accounting information to contribute to strategic decision making of business and government. The overall objective of this unit is to give students an understanding of the role of management accounting information in planning, decision making and monitoring the organisation. This unit considers fundamental concepts and tools used by accountants to provide information for planning and control. There is an emphasis to make the student capable of applying management accounting information in decision making.

Unit topics include:

  1. Introduction to Management Accounting 
  2. Basic Managerial Accounting Concepts
  3. Cost Behaviour
  4. Job‐order Costing
  5. Process Costing
  6. Activity Based Costing
  7. Standard Costing
  8. Cost‐volume Profit Analysis 

Learning Outcomes

At the completion of this unit students should be able to:

  1. Describe and discuss the function and role of management accounting in the contemporary business environment.
  2. Demonstrate broad knowledge of management accounting and explain appropriate approaches to generate cost information.
  3. Produce business reports which present analyses of financial solutions to management issues in writing.
  4. Apply knowledge to generate adaptable and flexible approaches to problem solving and decision making.
  5. Apply management accounting practices and theories to analyse and solve business and management problems.

Teaching Method

Lecture: 2 hours
Tutorial/Workshop: 1 hour
Face to Face


Assessment Task
Learning Outcomes Assessed
Contribution in classa-e*10%
Class Test – 1
a, b*5%
Class Test – 2
a, c, d*10%
Group Assignment  (Written Report)
Final Exam (3 Hours)a-f*50%
Total 100%

*refer to learning outcomes above.


Note: Students are required to purchase the prescribed text book and have it available each week in class.

Prescribed Text Book:

Mowen, M. Hansen, D. Heitger, D. Sands, J. Winata, L. and Su, S. (2016). Managerial Accounting (1st Ed.). South Melbourne, VIC: Cengage Learning.

Reference Reading

Hansen, R., & Mowen, M., (2017). Cornerstones of Cost Management, 4th edition. US: Cengage Learning
Edward J., & Maria R. M. (2016). Principles of Cost Accounting, 17th edition. US: Cengage Learning
Horngren, C. Datar, S.M. Rajan, M.V. Wynder, M. Maguire, W. Tan, R. (2014). Cost Accounting: A Managerial Emphasis, 2nd edition. Frenchs Forrest, NSW: Pearson Australia.
Langfield-Smith, K. Thorne, H. and Hilton, W.R. (2011). Management Accounting: Information for Creating and Managing Value & Connect Plus, 6th edition. North Ryde, NSW: McGraw Hill.
Eldenburg, L., Eliades, G., Ellinghaus, M., Ellinghaus, M. P., Elliott, E., Elliott, G., Elliott, J. A., Elliott, R., & Ellis, E. (2011). Management Accounting, 2nd edition. Milton, Qld.: John Wiley & Sons

Adopted Reference Style: APA can be found in MIT library referencing  

MIT is committed to ensure the course is current, practical and relevant so that graduates are “work ready” and equipped for life-long learning. In order to accomplish this, the MIT Graduate Attributes identify the required knowledge, skills and attributes that prepare students for the industry.
The level to which Graduate Attributes covered in this unit are as follows:

Ability to communicateIndependent and Lifelong LearningEthicsAnalytical and Problem Solving Cultural and Global AwarenessTeam workSpecialist knowledge of a field of study



Colour coding    

Extent covered

                               The standard  is covered by theory and practice, and addressed by assessed activities in which the students always play an active role, e.g. workshops, lab submissions, assignments, demonstrations, tests, examinations
 The standard is covered by theory or practice, and addressed by assessed activities in which the students mostly play an active role, e.g. discussions, reading, intepreting documents, tests, examinations
 The standard is discussed in theory or practice; it is addressed by assessed activities in which the students may play an active role, e.g. lectures and discussions, reading, interpretation, workshops, presentations 
 The standard is presented as a side issue in theory or practice; it is not specifically assessed, but it is addressed by  activities such as lectures or tutorials
 The standard  is not considered, there is no theory or practice or activities associated with this standard