Accounting Management
Objectives
This course aims to provide students with an understanding of the information that must be produced within the companies for the valuation of their inventory, for decision-making by their managers, and for the planning, control and performance measurement of their activities. Concern is given to the design, use and role of accounting information in the management of organizational activities.
General characterization
Code
1218
Credits
7
Responsible teacher
Marta Almeida
Hours
Weekly - Available soon
Total - Available soon
Teaching language
Portuguese | English
Prerequisites
Mandatory precedence: Financial Accounting
Bibliography
• Drury, C. (2018) Management and Cost Accounting, 10th Edition, South--?Western / Cengage Learning (ISBN 9781473748873);
• 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 comprises both lectures and tutorials. Lectures (one each week) consist of presentations about the theoretical aspects of each topic, as well as, applications to real-life situations. Powerpoint handouts will be provided to students covering all the topics. Tutorials (two each week) base on exercises 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.
During the course the following teaching and learning methods will be thus adopted:
1. Expositional, to the presentation of the theoretical reference frames;
2. Participative, with analysis and resolution of application cases and problems;
3. Active, with the realization of individual works.
4. Self-study, related with autonomous work by the student, as is contemplated in the class planning.
These teaching and learning methods are aimed at the development of the students’ main learning competences that allow to fulfill each of the learning objectives described before.
Evaluation method
Subject matter
1. Introduction to Management Accounting
a. Scope and objectives of Management Accounting
b. Terms, concepts and classifications of costs
c. Cost concepts in manufacturing companies: cost of goods manufactured and cost of goods sold
d. Profit and loss account by function
2. Inventory Valuation and Profit Measurement
a. Cost assignment:
i. Single versus multiple overhead allocation rates
ii. Traditional costing systems
iii. ABC costing system
b. Job costing and process costing
3. Information for Decision-Making
a. Alternative cost accumulation systems
i. Description
ii. Advantages and disadvantages
b. Cost-volume-profit analysis
i. Objectives
ii. Break?even point
iii. Safety margin
iv. Product-mix
c. Relevant costs and revenues
i. Objectives
ii. Examples
4. Information for Planning and Control
a. Budgeting
i. The planning process
ii. Objectives and importance of budgeting
b. Standard costs and variance analysis
i. Objectives
ii. Calculation of variances
iii. Identification of the causes of variances and the corrective actions to implement
Programs
Programs where the course is taught: