Advanced Diploma in Cost and Management Accounting

Purpose

The purpose of this qualification is for the learner to have a thorough knowledge of Accounting and to cost in order to manage an accounting department and to provide accounting services to commerce and industry. This qualification offers a well-rounded, technically focused education that equips relevant diploma learners with the technical knowledge, proficiency and pervasive skills which will enable them to demonstrate initiative and responsibility. The qualification will also allow the development of practical and operational focused qualities that are required in the work environment.

Learners will acquire the necessary skills to prepare and present accounting information to assist in the decision-making process. Learners will be empowered with the essential knowledge, analytical skills and discipline to operate effectively in any segment of Accounting and to perform management accounting functions in a manufacturing organisation. They will be able to apply accounting techniques to plan and budget.

The learner can seek employment in the accounting field both in the private and public sectors (e.g. local and provincial government departments, SARS, State-owned enterprises etc.). A learner would also be equipped with the skills required to pursue entrepreneurial ventures and be a job creator (employer). Alternatively, enroll for a professional qualification (i.e. CIMA and ACCA) or to do Honours or Master's Degree in Cost and Management Accounting.

This qualification will equip learners with applied competence in mastering, analysis, interpretation and understanding Financial Accounting and Management Accounting and to develop diagnostic skills at entry level in the Finance Department of an organisation.

Rationale

The rationale for this qualification is to provide learners with the necessary knowledge, competence and skills to work in an accountancy environment and understand the world of work, be confident about their value and have a higher than average chance of being employed. The qualification is designed to provide students with the knowledge and learning experiences needed by management accountants to perform their job in the field of Accounting.

The qualification also seeks to equip learners with Accounting and Management Accounting skills and knowledge, thereby satisfying the national demand for public and private sector accountants and management accountants. There is an increasing need for this qualification both in the private and public sectors considering economic growth and job opportunities on a global scale.

This qualification is aligned with the institution's vision and mission of offering Post learner qualifications and it is also aligned with the revised structure of the Higher Education Qualifications Sub-Framework (HEQSF) for articulation from a Diploma to Advanced Diploma and prerequisite to a Postlearner Diploma or to a Bachelor Honours Degree.

Recognition of Prior Learning (RPL)

A prospective learner who does not have a prerequisite qualification, but has sufficient formal, non-formal and informal learning or has developed satisfactory skills in the area of expertise required, may apply for admission to the qualification in terms of the institution's RPL Policy. The prospective learner without a NQF Level 6 or the prerequisite qualification, but who has extensive non-formal and informal prior learning that is similar to the entry requirements for the Advanced Diploma, will be considered for advanced standing as stipulated in the institution's RPL Policy.

The assessment for an RPL learner for advanced standing admission to the Advanced Diploma in Cost and Management Accounting will be done following the rules of the Institution's procedures for Assessment of RPL. Furthermore, it will be obligatory for the learner to submit a completed application form together with a Portfolio of Evidence indicating how they meet the department's criteria for entry into the qualification in accordance with the RPL documents for admission after acknowledged by the Head of the Department which will then serve at the various institution statutory structures for approval.

Entry Requirements

The minimum entry requirement for this qualification is

• Diploma, Accounting, Cost and Management Accounting or Financial Information Systems, NQF Level 6.

This qualification consists of the following compulsory modules at totalling 120 Credits.

Compulsory Modules at Level 7, 120 Credits

• Management Accounting iv, 12 Credits.
• Financial management iv, 12 Credits.
• Financial Accoumting iv, 12 Credits.
• Research Methodology iv, 12 Credits.
• Systems and Project Management iv, 12 Credits.
• Management Accounting iv, 12 Credits.
• Financial Management iv, 12 Credits.
• Financial Reporting iv, 12 credits.
• Business Strategy iv, 12 Credits.
• Systems and Project Management, 12 Credits.

1. Apply different cost accounting tools and techniques to generate information needed to evaluate and control present and projected performance.
2. Examine the role of tax in financial analysis and decision-making.
3. Prepare the full financial statements for a single company and the principal consolidated financial statements for a simple group.
4. Apply the time value of money to value different financial instruments and make long-term financial decisions.
5. Apply decision-making and control techniques to ensure maximum performance.
6. Understand the concept of Business Strategy.
7. Apply research principles, methodologies and techniques.

Associated Assessment Criteria for Exit Level Outcome 1

• Evaluate and apply costing methods and their results.
• Explain and interpret the role of Material Requirements Planning and Enterprise Resource Planning systems.
• Understand and apply the principles of environmental costing and the purposes of forecasts, plans and budgets.
• Prepare information to support project appraisal, forecasts of financial results and budgets based on those forecasts.
• Evaluate project proposals and analyse the information to assess the impact on decisions of variables with uncertain values.
• Identify the working capital position of an enterprise, short- term funding and investment opportunities and areas for improvement.

Associated Assessment Criteria for Exit Level Outcome 2

• Explain the accounting rules for current and deferred taxation and the principles that underlie the use of budgets in control.

Associated Assessment Criteria for Exit Level Outcome 3

• Prepare full consolidated statements of a single company and the financial position and comprehensive income for a simple group.
• Research and apply the principles of accounting for capital schemes and foreign exchange rate changes.
• Understand and discuss accounting principles and their relevance to accounting issues of contemporary interest.
• Research and apply ratio analysis from financial statements and supporting information.
• Evaluate performance and position.
• Understand and discuss contemporary developments in financial and non-financial reporting.

Associated Assessment Criteria for Exit Level Outcome 4

• Evaluate and apply long-term capital investment decisions and capital budgeting techniques.
• Evaluate the leasing decision and alternative sources of finance.
• Identify and use the appropriate sources of long-term corporate capital.
• Evaluate and understand the dividend policy of a company and recommendations regarding the optimum pay-out and retention ratios.
• Calculate and interpret a company or a division's performance using ratio analysis.

Associated Assessment Criteria for Exit Level Outcome 5

• Discuss and apply concepts of cost and revenue relevant to pricing and product decisions.
• Analyse short-term pricing, pricing strategies and product decisions.
• Evaluate and apply the techniques for analysing and managing costs for a competitive advantage.
• Understand and apply the principles that underlie the use of budgets in control.
• Evaluate performance using budgets, alternative approaches and sensitivity to variable factors.
• Discuss the broader managerial issues arising from the use of budgets in control.
• Evaluate and understand the purpose of responsibility centres in devising organisational structure and management.

Associated Assessment Criteria for Exit Level Outcome 6

• Formulate the organisation's mission, goals, aims and critical success factors.
• Identify and evaluate long and short-term objectives for the organisation and possible conflict between objectives.
• Differentiate between formal and less formal approaches to strategy formulation.
• Outline the process of strategy formulation.
• Explain the importance of competitive factors in reviewing the position of the organisation.
• Explain the international influences on the organisation and preparing Strengths, Weaknesses, Opportunities, and Threats (SWOT) and Political, Economic, Social and Technological (PEST) analysis.
• Identify and evaluate international factors affecting the market place e.g. Porter's 5 forces model.
• Prepare reports to management on organisational resources.
• Benchmark performance against best practice organisations.
• Explain value chain analysis and its implications for the organisation.
• Explain the problems of strategic performance, the use of profit and cash measures.
• Explain non-financial measures and the interaction with financial measures.
• Explain multidimensional models of performance including the balanced scorecard.
• Explain strategic business performance: transfer pricing and reward systems.
• Explain the consequences of short and long-term planning concerning research and development, changing technology, outsourcing and capital investment.

Associated Assessment Criteria for Exit Level Outcome 7

• Define the research and explain the research process.
• Analyse various research approaches and understand the types of research methods are understood.
• Identify the research problem in an Accounting discipline.
• Develop a research design in terms of the type of research that will be conducted.
• Apply the format of the research report in terms of standard norms and requirements.
• State the research objectives in the research report.
• State the methodology used to collect information in the report.
• State the research findings and recommendations in the report.

Integrated Assessment

The institutional assessment policy requires four assessments per year for year courses and two assessments for semester modules. Formative assessment has minimum of two assessments per course per semester where the assessment can either be two written tests or one written test and an assignment which contributes to the final examination mark. Summative assessment takes the form of a three-hour examination paper at the end of the semester or year, and this contributes to t the final examination.