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Management Accounting

Course developer

Prior knowledge

Ekon3153, Economics

Ekon3154, Financial Accounting

Course abstract

The course provides basic knowledge of cost-setting, classification, methods of cost accounting and analysis, methods of calculating cost calculations, pricing methods, planning and control, and theoretical knowledge for assessing various cost-related risks to make qualitative decisions for efficient business management.

Learning outcomes and their assessment

Knowledge.
Knows the practical applicability of management accounting theory and management accounting methods in ensuring and managing the company's economic activity, evaluating operational processes (practical works, discussion in class).
Understanding of costs, their classification; full cost calculation, also using mark-up rates, variable cost calculation, application of stock valuation methods (practical works, control works with calculations).
Knowledge of cost calculation using markup rate; process cost calculation, breakeven point, profit or loss threshold; determination of the optimal volume of production and sales of the product, classification of costs in the calculation of profit or loss and determination of the result of economic activity (practical works, control works with calculations).
Knowledge of cost classification and their inclusion in cost calculations, cost control and regulation. Understanding of the general cost allocation system, of the impact of stock valuation methods on the result of economic activity. Understanding of decision-making costs and the decision-making process (independent work, group work, discussion in class).
Skills. Has an understanding of the main tasks of management accounting, knows how to determine and classify costs and perform cost calculations based on this, calculate the offer price, analyze the obtained results, understand under what conditions the company can work with or without losses, determine the causes and develop proposals for solving problems or to improve the situation taking into account the changing market situation (practical works, control works with calculations).
Able to responsibly plan assigned tasks (independent work).
Competence. Able to apply the acquired knowledge to the evaluation and provision of production, service provision, realization process accounting and effective operation in the company. Able to manage costs and prepare proposals for cost reduction, able to plan profit and its use (practical tasks, control works with calculations, discussion in class).

Course Content(Calendar)

1. Tasks and goals of management accounting: comparative characteristics of financial and management accounting, main tasks and directions of management accounting, description of the need for cost calculation. (lecture 1 hour)
2. Tasks and objectives of cost accounting: Basic concepts of cost and return calculations. The difference between expenses and costs and their accounting. Classification of costs according to their functions and nature. Classification and presentation of costs in profit or loss calculations in accordance with the requirements of regulatory acts. (lecture 1 hour, practical works 3 hours)
3. Classification of costs in cost analysis and cost calculations: direct and indirect costs, fixed and variable costs, mixed costs, product and period costs. Classification of costs in cost calculations. Accounting principles and determination of general (overhead) production costs, analysis. (lecture 1 hour, practical works 3 hours)
4. 1st control work (1 hour)
5. Accounting of costs by cost locations. General cost allocation techniques. (lecture 1 hour, practical works 2 hours)
6. Unit cost calculations of cost carriers (full cost calculation): calculation with division, calculation with addition rates. (lecture 1 hour, practical works 4 hours)
7. Division of costs into fixed and variable: cost calculation of variable costs, coverage amount, determination of profit, comparison of variable costs and full production cost calculations. (lecture 2 hours, practical works 1 hour)
8. 2nd control work (1 hour)
9. Cost calculation of the process: calculation of the cost of an individual process, calculation of the total production process, determination of the total cost of the process and calculation of the cost of one unit, evaluation of stocks of unfinished products. (lecture 1 hour, practical works 1 hour)
10. Coverage amount, determination of critical point, determination and analysis of profit-loss threshold: determination of profit threshold by equation and graphic method, critical point. (lecture 1 hour, practical works 2 hours)
11. Price calculation: basic principles of price formation, trade discounts and their application, discounts for food groups and services, price formation methods in catering companies, calculation of the offer price. (lecture 1 hour, practical works 2 hours)
12. 3rd control work (2 hours)

In part-time correspondence studies: All topics indicated for full-time attendance are implemented, but the number of contact hours is 1/2 of the number of hours indicated.

Requirements for awarding credit points

Test with mark - the average score in the balls, which consists of successfully completed 3 control works:
1) costs, their classification, the full cost calculation, also using the addition rates, the calculation of variable costs and the presentation of the obtained results with a graphical method and their analysis;
2) variable cost calculation, process cost calculation, break-even point, profit or loss threshold, price calculation;
3) open questions and tasks related to the courses and solved tasks discussed at the course,
and successfully completed practical work.

Description of the organization and tasks of students’ independent work

Tasks regarding topics examined in lectures and practical work shall be solved independently. Some housework is valued and their valuation is included in the calculation of the end mark of the course.

Criteria for Evaluating Learning Outcomes

Netting with a check mark. Accumulating assessment of study results (100%).
1st control work 33.33%
2nd control work 33.33%
3rd control work 33.34%
The netting mark is calculated as the arithmetic average of the results of 3 control works and includes home job ratings that at home working conditions it is determined that it is included in the calculation of the average estimate.

Compulsory reading

1. Alsiņa R., Marinska K., Bojarenko J. Vadības grāmatvedība: teorija un prakse. SIA KIF „Biznesa komplekss”, Rīga 2011, 239 lpp.
2. Pelšs A. Vadības grāmatvedība. Rīga: KIF “Biznesa komplekss”, Rīga 2001. 2 daļas.
3. Gada pārskatu un konsolidēto gada pārskatu likuma piemērošanas noteikumi. [tiešsaiste] Ministru kabineta 22.12.2015. noteikumi Nr. 775. Stājas spēkā: 01.01.2016. [skatīts 15.09.2023.] Pieejams: https://likumi.lv/ta/id/278844-gada-parskatu-un-konsolideto-gada-parskatu-likuma-piemerosanas-noteikumi

Further reading

1. Alsiņa R., Zolotuhina K., Bojarenko J. Vadības grāmatvedības pamati: Vadības grāmatvedība un lēmumu pieņemšana. Rīga: RAKA 2000. , 179 lpp.
2. Ēdināšanas uzņēmuma vadītāja rokasgrāmata. Red. I. Millere. Jelgava: LLU, 2017. 1 tiešsaistes resurss. 254 lp. ISBN 9789984482750 (PDF). [skatīts 15.09.2023.] Pieejams: https://llufb.llu.lv/LLUgramatas/PTF/Edinasanas_uzn_vad_rokasgramata.pdf
3. Vārna J. Ražošanas organizēšana. Rīga: Valters un Rapa, 2004. , 294 lpp.
4. Gada pārskatu un konsolidēto gada pārskatu likums. [tiešsaiste] Pieņemts: 22.10.2015. Stājas spēkā: 01.01.2016. [skatīts 15.09.2023.] Pieejams: https://likumi.lv/ta/id/277779-gada-parskatu-un-konsolideto-gada-parskatu-likums
5. Īriste S., Platace M., Riekstiņa-Doļģe R. Viesu izmitināšanas pakalpojumu organizēšana: digitālais mācību līdzeklis. Rīga: Valsts izglītības satura centrs, 2021. Tiešsaistes resurss. 257 lp. [skatīts 15.09.2023.] Pieejams: https://skolo.lv/pluginfile.php/35364320/mod_resource/content/14/DML_Viesnicas_PDF_materials.pdf
6. Forands I. Viesnīcas menedžments. Rīga: Latvijas Izglītības fonds, 2011. , 230 lpp.
7. Benze J. Izmaksu uzskaite un pašizmaksas kalkulācija. Rīga: Auditorfirma “Grāmatvedis”, Rīga 1996. , 134 lpp.
8. Praude V., Liniņa I. Pārdošanas vadība. Rīga: Biznesa augstskola Turība, 2018. 407 lpp. Uzņēmējdarbības bibliotēka; Nr. 70.
9. Garrison R.H. Managerial accounting: concepts for planning, control, decision making. (6th ed.). Homewood(IL); Boston (MA): Irwin, 1991. 810 p.
10. Horngren C.T., Sundem G.I. Introduction to Management Accounting. (7th ed.). USA: Prentice Hall, 2002. 762 p.
11. Horngren C.T., Sundem G.I., Stratton W.O. Introduction to Management Accounting. (12th ed.). New Jersey: Prentice Hall, 2002. 789 p.
12. Januška M. Finanšu un grāmatvedības kontrole firmā. Rīga: Merkūrijs LAT. 2002. 144 lpp.
13. Krogzeme H. Komersantu darbības analīze un kontrole. Rīga: RTU 2013. 348 lpp.
14. Šēnfelde M. Makroekonomika. (4. izdevums). Rīga: RTU, 2012. 244 lpp.
15. Upchurch A. Cost Accounting: Principles and Practice. London: Prentice Hall, 2002. 698 p.
16. Jiambalvo J. Managerial Accounting: International Student Version. Hoboken: John Wiley & Sons. Inc., 2007. 572 p.
17. Purvgalis A. Komercdarbības izmaksas, ieņēmumi un peļņa. Mācību līdzeklis. Jelgava: LLU Meža fakultāte, 2005. 52 lpp.
18. Vītola Ī., Soopa A. Vadības grāmatvedība. Jelgava: Latvijas Lauksaimniecības universitāte, 2002. 222 lpp.
19. Benze J. Vadības grāmatvedība: rokasgrāmata. Latvijas Grāmatvedības metodiskā padome; Ernst & Young. Rīga: LR Finanšu ministrija, 1995. 4 sēj.

Periodicals and other sources

1. iBizness. Rīga: Izdevniecība iŽurnāli. ISSN 2256-0882
2. iFinanses. Rīga: Izdevniecība iŽurnāli. ISSN 2255-985X
3. Bilance: grāmatvedība, likumdošana, finanses. Rīga: Lietišķās informācijas dienests. ISSN 2005-1407-5709

Notes

Professional specialisation course at the Faculty of Food Technology in the study programme “Catering and Hotel Management” for the professional higher education bachelor’s degree programme during the 7th semester in full and part-time studies.