Management Control Systems
This course aims to provide state-of-the-art thinking on recent innovations in management accounting and control systems, including, Activity-Based Costing (ABC) systems, Time-Driven Activity-Based Costing (TDABC), Balanced Scorecard, Costs of Quality, Target Costing, Kaizen Costing and Life-Cycle Costing, in order to help students better understand management accounting topics and issues from a managerial perspective. The course integrates a conceptually sound and practically relevant perspective on the role of management accounting and control information in informing important decisions made by business managers.
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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).
Atkinson, A.A., Kaplan, R.S., Matsumura, E.M. and Young, S.M. (2012) Management Accounting, Sixth Edition, Upper Saddle River, NJ: Pearson Education (ISBN 978-0-273- 76998-9).
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.
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.
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 management accounting and control. Classroom attendance and active participation is expected and required. Students are also encouraged to do some homework regarding the fulfilment of the objectives of the course.
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 two case studies, which reports are to be prepared in group and presented to the instructor. 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 weekly delivery of homework.
In accordance with the school’s norms, there is no procedure for grade improvement after passing a course (no re-sit or second course enrolment).
Part I – The Rise and Fall of Management Accounting:
1. From management accounting to cost accounting;
2. The new business environment and innovation in management accounting and control systems;
Part II – Information for Planning and Performance Measurement:
1. The Balanced Scorecard;
2. The strategy map;
3. Benefits and limitations of the Balanced Scorecard;
Part III - Activity Based Costing and Time-Driven ABC:
1. The emergence of ABC;
2. Benefits and limitations of ABC;
3. Time-Driven ABC;
5. Implementation issues;
Part IV – Strategic Cost Management:
1. Quality Cost Management;
2. Life-cycle Costing;
3. Target Costing;
4. Kaizen Costing.