Managerial Accounting

General characterization

Prerequisites

Bibliography

Basic reading:

Drury, C. (2013) Management Accounting for Business, 5th Edition, South-Western / Cengage Learning (ISBN 978-1-4080-6028-5) – Chapters 1, 2, 3, 4, 7, 8, 9 and 10.

Young, S.M. (2011) Readings in Management Accounting, Sixth Edition, Upper Saddle River, NJ: Pearson Education (ISBN 978-0-1370-2503-9).

Further reading:

Bhimani, A., Horngren, C.T., Datar, S.M. and Rajan, M. (2015) Management and Cost Accounting, 6th Edition, Pearson (ISBN 978-129-206-346-1);

Garrison, R., Noreen, E. and Brewer, P. (2014) Managerial Accounting, 15th Edition, McGraw-Hill (ISBN 007-8-0256-3x);

Hopper, T., Northcott, D. and Scapens, R. (2007) Issues in Management Accounting, 3rd Edition, Prentice Hall / Financial Times (ISBN 978-0-273-70257-3);

Chapman, C. S., Hopwood, A. G. and Shields, M. D. (2009) Handbook of Management Accounting Research, Elsevier, Volumes 1, 2 & 3;

Bhimani, A. (2006) Contemporary Issues in Management Accounting, Oxford: Oxford University Press.

Resources

A course webpage in Moodle is used to disseminate information about the course, as well as the Powerpoint slides for the lectures and the cases/exercises.

Teaching method

The course comprises 6 classes (3 hours each), which consist of presentations about the theoretical aspects of each topic and their application to real-life situations. PowerPoint handouts will be provided. The teaching approach will be based on exercises/case studies, class presentations and discussions with students in order they are able to develop the theoretical and practical knowledge about the concepts, the systems and practices of managerial accounting. Classroom attendance and active participation is expected and required. Students are also encouraged to do some homework regarding the fulfillment of the objectives of the course.

Evaluation method

The final exam is mandatory and must cover the entire span of the course. Its weight in the final grade can be between 30 to 70%. The remainder of the evaluation can consist of class participation, midterm exams, in class tests, etc. Overall, written in class assessment (final exam, midterm) must have a weight of at least 50%.

The evaluation system includes:

• On-going assessment: (15%);

• Group written assessment: (35%);

• Final exam: (50%).

The group written assessment consists of a case study (comprised of two parts) covering specific topics of the course, which report should be prepared in groups and presented in classes. The group written assignment is mandatory for all students. On-going assessment is based on instructor’s evaluation of students’ participation in discussion of cases prepared for classes and on the delivery of homework.

In accordance with the school’s norms, there is no procedure for grade improvement after passing the course (there is no re-sit exam or second course enrolment).

Subject matter

• Part I – Introduction to Management and Cost Accounting: (Chapters 1 & 2)

  1. Introduction to Management Accounting;

  2. An introduction to cost terms and concepts;

  3. Functions of management accounting;

• Part II – Information for Decision-Making: (Chapters 3 & 4)

  4. Cost-volume-profit analysis;

  5. Measuring relevant costs and revenues for decision-making;

  6. Special pricing decisions;

  7. Outsourcing and make or by decisions;

  8. Discontinuation decisions;

  9. Product-mix decisions;

• Part III – Cost Assignment: (Chapters 7 & 8)

  10. Cost assignment: the two-stage allocation process;

  11. Comparison of traditional and activity-based costing systems;

• Part IV – The Budgeting Process: (Chapters 9 & 10)

  12. Functions of budgets;

  13. Sales budget, production budget and budgeted inventory levels, direct materials usage and purchase budgets, direct labour budget, factory overhead budget, selling and administration budget, cash budget, financial budget, budgeted profit and loss account and budgeted balance;

  14. Criticisms of budgets.

Programs

Programs where the course is taught: