ADVANCED MANAGEMENT ACCOUNTING - ADA
Learning outcomes of the course unit
a. Knowledge and understanding:
The course has the following objectives:
- to investigate "Management accounting and budgeting methodology" with special attention to relevant issues in financial and cost accounting (reports, features and purpose);
- to analyze advanced cost accounting systems: critical issues in the determination and allocation of costs; traditional accounting systems; critical issues in the implementation of advanced ABC; 'hybrid' accounting systems;
- to analyze cost management patterns with special attention to innovative enterprise contexts and cost management tools, activity-based management, target costing and other tools;
- to implement balanced scorecards.
b. Applying knowledge and understanding:
Students will be able to interpret and use cost-accounting models widely used in enterprises, as well as to understand key issues relating to the more advanced tools of business management control.
c. Making judgments:
Students will be able to interpret the control systems of enterprise management (with specific reference to those operating in the private and industrial sector) and to identify tools that are most suitable to meet business needs.
d. Communication skills:
Student are expected to develop problem-solving skills, interpersonal skills and ability to communicate effectively with diverse stakeholders, in speaking and writing, also using appropriate terminology in expository/analytical and argumentative discourse. To this purpose, active participation in activities and practical exercises, as well as oral presentations of individual or group work on selected case studies and subjects, are encouraged. Communications skills are also assessed via achievement tasks in the final examination.
e. Ability to learn:
The course promotes learning through a correct approach to individual and group learning and through supervised in-class discussion of business studies.
Course contents summary
Management accounting systems: financial and cost accounting: relations, characteristics and purposes.
Basic Concepts of Cost Accounting cost and applications: classification, variability and cost allocation, product cost, cost configurations and cost center accountings; Direct Costing and Full Costing, Activity Based Costing (ABC).
Advanced Cost Accounting: critical issues in cost determination and allocation; traditional accounting systems; critical issues in the implementation of advanced ABC; 'hybrid' accounting systems.
Evolution of Cost Management tools: innovative business contexts and Cost Management tools, Activity Based Management, Target Costing and other tools.
Control “dashboards”: Balanced Scorecard, key performance indicators.
Case studies will be discussed and business testimonials presented during the course.
MIOLO VITALI P. (a cura di), Strumenti per l’analisi dei costi – Approfondimenti di Cost Accounting, Vol. II, Torino, Giappichelli, 2009.
MIOLO VITALI P. (a cura di), Strumenti per l’analisi dei costi – Percorsi di Cost Management, Vol. III, Torino, Giappichelli, 2009.
Lectures, tutorials and work group.
Assessment methods and criteria
Learning achievements will be measured and assessed in a written exam that comprises open-ended questions and also requires the application of cost accounting methods.
More specifically, to assess knowledge of topics, communication skills, appropriate use of terminology and independence of judgment, students will be required to:
- answer 1 extended open question (10 points);
- answer 5 short open questions (2 points each);
As regards the applied perspective, knowledge and skills will be assessed through an application exercise (10 points). Classroom assessment of group-work and case studies will be also taken into account.