Management Control
Objectives
This course aims to provide information on what
companies should create for inventory, for decision-making and for the
planning, control and performance measurement of activities.
Knowledge/Understanding
Discuss the factors influencing the choice of an
optimal management and cost accounting system
Explain how management accounting can be used in
service organizations
Specific Skills
Understand the meaning of different cost terms
Describe differences between traditional/activity-based
costing systems
Discuss the arguments for and against variable
and absorption costing
Measure relevant costs and revenues for
decision-making
Identify the various stages in the budget
process and explain the purposes of a standard costing system.
General Skills
Explain how the competitive environment has
influenced the development of management accounting
Understand the main functions of a management
and cost accounting system
Discuss why different cost information is
required for different purposes
General characterization
Code
14246
Credits
6
Responsible teacher
Marta Almeida
Hours
Weekly - Available soon
Total - Available soon
Teaching language
Portuguese | English
Prerequisites
Available soon
Bibliography
• Drury, C. (2015) Management and Cost Accounting, 9th Edition,
South-Western / Cengage Learning (ISBN 978-1-4808-9393-1);
•
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).
Teaching method
The course includes theoretical and practical lessons. The theoretical
lessons are based on the discussion of the theoretical contents of each topic
of the programme and its application to practical situations. The practical
lessons are based on the elaboration of exercises and discussions.
Teaching
and learning methods: Expositional, Participative, Active, Self-study
Evaluation method
The
assessment of this CU is done together with the block of CUs of the same area
of knowledge. This assessment has 3 moments, which together define the final
grade of the CU:
•Individual
exam with a weighting of 50% of the total mark
•Group
work with a weighting of 35% of the total grade value
•Individual
reflection-action exercise carried out at the end of the curricular unit, with
a weighting of 15%. The set of individual action-reflection exercises is a
journaling activity, which will constitute a learning portfolio capable of
synthesising the contributions of the Executive Master for that student.
Subject matter
Structure
1. Introduction to Management Accounting
Scope and objectives of Management Accounting
Terms, concepts and classifications of costs
Cost concepts in manufacturing companies: cost
of goods manufactured and cost of goods sold
Profit and loss account by function
2.Inventory Valuation and Profit Measurement
Cost assignment:
Single versus multiple overhead allocation rates
Traditional costing systems
ABC costing system
Job costing and process costing
3.Information for Decision-Making
Alternative cost accumulation systems
Description
Advantages and disadvantages
Cost-volume-profit analysis
Objectives
Break-even point
Safety margin
Product-mix
Relevant costs and revenues
Objectives
Examples
4. Information for Planning and Control
Budgeting
The planning processes
Objectives and importance of budgeting
Standard costs and variance analysis
Objectives
Calculation of variances
Identification of the causes of variances and
the corrective actions to implement