Management Accounting

Business and Economics

About this course

Management accounting as a component of accounting. Differences between management accounting and financial accounting. Classifications of costs. Cost behaviour. Relevant range. Methods for cost estimation. Cost allocation. Variable costing and absorption costing. Relevant and irrelevant costs for decision making. The make or buy decision. Dropping unprofitable product lines or products. Acceptance of a special order. Assumptions on responsibility accounting. Revenue centres. Cost centres. Profit centres. Investment centres. Purposes and methods of transfer pricing. Assumptions of cost-volume-profit analysis. Main concepts and formulas. Break-even chart. Target costing. Budgeting process. Situation analysis. Environmental outlook. Statement of main objectives, process of preparation, negotiation and final acceptance of budgets. Budgetary control. Preparation of cash flow statements. Financial statement analysis.

NB! This course will take place in autumn semester 2024/2025 which starts on 2nd of September and ends 26th of January (you can find that information under Start date section). The real course start and end dates will be announced at the beginning of September at the latest.

Learning outcomes

After completing this course, the student:

  • identifies and defines differences between financial and managerial accounting;
  • applies various costing systems: Job order, Process costing, ABC costing for service, merchandising and manufacturing companies;
  • applies CVP analysis to calculate break-even point, target profit and prepare scenario reports;
  • prepares basic budgets and performs variance analysis;
  • prepares calculations and evaluates special business decisions: specials sales order, dropping of a segment, product mix, outsourcing, pressing further;
  • prepares and interprets capital budgeting decisions.


Final assessment can consist of one test/assignment or several smaller assignments completed during the whole course. After declaring a course the student can re-sit the exam/assessment once. Assessment can be graded or non-graded. For specific information about the assessment process please get in touch with the contact person of this course. For specific information about grade transfer please contact your home university

Course requirements

Prerequisite - Principles of Financial Accounting


lectures, exercises

Additional information

  • Credits
    ECTS 6
  • Level
  • Contact hours per week
  • Instructors
    Vaiva Kiaupaite-Grušniene
  • Mode of instruction
If anything remains unclear, please check the FAQ of TalTech (Estonia).


  • Start date

    2 September 2024

    • Ends
      26 January 2025
    • Term *
      Fall semester 2024
    • Instruction language
    • Register between
      14 May - 29 Jul 2024
    Only 7 days to enrol
    Apply now
These offerings are valid for students of DTU (Denmark)