Managerial Accounting notes – KNEC Diploma

Managerial Accounting

These notes applies to the following Courses as examined by KNEC

Topics covered in this unit/subject are as follows:

Topic 1: Nature and scope of managerial accounting
Topic 2: Decision trees
Topic 3: Cost estimation
Topic 4: Cost volume profit analysis (C-V-P)
Topic 5: Marginal costing
Topic 6: Capital expenditure decisions
Topic 7: Transportation technique
Topic 8: Assignment technique
Topic 9: Queuing theory
Topic 10: Performance evaluation techniques
Topic 11: Budget and Budgetary control
Topic 12: Emerging trends and issues in managerial accounting

This module unit is intended to equip the trainee with the necessary knowledge, skills and attitudes that will enable him/her analyze and interpret cost data for the purpose of decision making in an organisation

General Objectives
At the end of this module unit, the trainee should be able to:

  1. Carry out estimating and forecasting costs using various methods
  2. Recognize the role of managerial accounting in decision making
  3. Carry out step-by-step process in solving decision making problems
  4. Carry out performance evaluation for a business
  5. Prepare a budget in a business

Topic 1: Nature and Scope of Managerial Accounting

  • Definition of managerial accounting
  • The role of managerial accounting in production, marketing and finance
  • Differences between managerial accounting and financial accounting

Topic 2: Decision Theory

  • Definition of decision trees
  • The structure of decision trees
  • Use of decision trees

Topic 3: Cost Estimation

  • Definition of cost estimation
  • Cost estimation methods

Topic 4: Cost-Volume-Profit Analysis (C-V-P)

  • Definition of cost volume profit analysis
  • Terms used in cost volume profit (C-V-P)
  • Assumptions of C-V-P
  • Limitations of C-V-P analysis
  • Break Even Point (B-E-P)
  • Calculation of break even point

Topic 5: Marginal Costing

  • Definition of marginal costing
  • Key factor
  • Decision-making using marginal costing

Topic 6: Capital Expenditure Decisions

  • Nature of capital expenditure decision
  • Non-discounting cash flow techniques
  • Time value of money concept
  • Discounting cash flow methods
  • Benefits and limitations of each technique

Topic 7: Transportation Techniques

  • Nature of transportation techniques
  • Requirements for application of transportation techniques
  • Transportation techniques

Topic 8: Assignment Techniques

  • Nature of assignment techniques
  • Requirements for application of assignment techniques
  • Assignment techniques for minimizing and maximizing problems

Topic 9: Queuing

  • Definition of a queue
  • Elements of a queue
  • Terms used in queuing theory
  • Application of queuing theory

Topic 10: Performance Evaluation

  • Definition of performance evaluation
  • Need for performance evaluation
  • Techniques for performance evaluation

Topic 11: Budgeting and Budgetary Control

  • Definition of budgeting and budgetary control
  • Preparation of functional budgets
  • Preparation of master budget

Topic 12: Emerging Trends and Issues in Managerial Accounting

  • Emerging trends and issues in Managerial Accounting
  • Challenges posed by the Accounting emerging trends and issues in Managerial Accounting
  • Ways of coping with the challenges posed by the emerging trends and issues in Managerial Accounting

0 Replies to “Managerial Accounting notes – KNEC Diploma”

  1. Kindly provide a clear way of getting the notes. You are giving us the course outline. Tusaidieni na izo notes zenyewe .

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