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Accessibility statement
Qualification dates
StartEnd
04 Apr 2026Sept 2026
This module provides a thorough understanding of how management accounting principles are vital for making business decisions. Building on Fundamentals of accounting (B124) and Business data analytics and decision making (B126), you'll explore management accounting in depth. This includes expanding upon key management accounting topics such as costing, budgetary planning and control, variance analysis and performance management, as well as contemporary topics such as environmental management accounting. The module is designed for anyone interested in the role of management accounting, especially if you wish to qualify as a professional accountant.
This module provides a firm grounding in key management accounting concepts and techniques.
Unit 1: The role and nature of management accounting

Unit 1 begins by providing an overview of the nature and role of management accounting and its core functions. It explores the historical context of management accounting and how it has evolved over time. It emphasises the importance of management accountants as key players in all aspects of a contemporary organisation and how they provide vital information and analysis to managers to aid in planning, evaluating, and controlling activities to achieve the organisation's objectives. The unit also highlights the changing context in which management accountants operate and the significance of considering environmental factors in organisational decision making. Additionally, you'll have the opportunity to gain insights into the practical application of management accounting by listening to a recorded interview featuring a practising management accountant. This will provide a comprehensive understanding of the role, context and significance of management accounting, as well as the responsibilities of management accountants. This foundational understanding will be built upon in subsequent units where specific management accounting techniques are examined in greater detail.
Unit 2: Cost accounting for planning and decision making

Unit 2 focuses on cost accounting and its importance in planning and decision making. It begins by addressing the importance of accounting for inventory, labour, and overheads, both from financial and management accounting perspectives. It also explores absorption and marginal costing and the effects of these two costing techniques on inventory valuation and reporting profit. In addition, it highlights the various costing and accounting methods such as job, batch, contract, and process costing, activity-based costing and alternative costing techniques such as target costing and lifecycle costing for calculating the cost of several types of products, processes, and services. This unit also consists of various practice-based activities that provide an opportunity to practice what you have learnt.
Unit 3: Budgeting and control

Unit 3 is concerned with the nature and purpose of a budget. It outlines the various types of budgets, how they all fit together, and how they may be used for planning, control and decision making within an organisation. It also explores the budgeting approaches and procedures that are commonly used, and the issues associated with the design and operation of budgetary processes, as well as behavioural aspects of budgeting.
Unit 4: Standard costing and variance analysis

Unit 4 looks at different types of costing approaches and considers how variance analysis is carried out in an organisation. It explains the significance of variance analysis for budgetary control, looks at how variances are investigated, and considers how budgetary reconciliation can identify and resolve potential problems. It also highlights the causes and steps of budget revision to cut off excess spending and reallocate revenues. Finally, the unit explains the application of standard costing in service industries, as well as discussing the limitations of standard costing.
Unit 5: Performance management

Unit 5 explores performance management through an examination of approaches to performance measurement. It looks at performance management systems and how different activities and techniques can be used to improve performance. The unit considers benchmarking, the balanced scorecard framework, and Fitzgerald and Moon’s Building Block Model. Furthermore, it highlights the concepts of economy, efficiency and effectiveness. It describes, calculates and interprets financial performance indicators (FPIs) for profitability, liquidity and risk in both manufacturing and service organisations. It also focuses on how performance could be measured in not-for-profit organisations and the public sector. Finally, the unit describes environmental, social and governance (ESG) and sustainability reporting and how this enables companies to be more transparent about the risks and opportunities they face.
You must have successfully completed Fundamentals of accounting (B124) and Business data analytics and decision making (B126) before you can begin B253.
If you would like to prepare for this module, you may find that Fundamentals of accounting, a free course on OpenLearn, is a helpful introductory resource.
You’ll get help and support from an assigned tutor throughout your module.
They’ll help by:
Online tutorials run throughout the module. While they’re not compulsory, we strongly encourage you to participate. Where possible, we’ll make recordings available.
Course work includes:
This module includes a remote exam you will take at home or another suitable location. The exam will be invigilated online by ProctorU, a service based outside the UK, with whom you must agree to additional Terms of Service to study this module. Find out more about online invigilation.
You’ll have access to a module website, which includes:
Where possible, the materials are also available in other formats, which may include PDF, EPUB and Microsoft Word, to enable you to study on the move.
The OU strives to make all aspects of study accessible to everyone, and this Accessibility Statement outlines what studying B253 involves. You should use this information to inform your study preparations and any discussions with us about how we can meet your needs.
To find out more about what kind of support and adjustments might be available, contact us or visit our Disability support website.
Intermediate management accounting starts once a year – in April.
This page describes the module that will start in April 2026.
We expect it to start for the last time in April 2032.
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