ADVANCED MANAGEMENT ACCOUNTING
Learning outcomes of the course unit
The aim of the course is to give the students higher insights to apply various management accounting techniques to all types of organizations for planning, decision making and control purposes in practical situations and to strengthen their theoretical knowledge and critical skills. Hence, a suggested prerequisite is to have successfully completed a course of Management Accounting at Bachelor degree level.
More specifically an objective of the the Master course (Second cycle course) of Advanced Management Accounting, AMA, is to develop ability to apply quantitative techniques to business problems.
Therefore the theory of Management Accounting, MA, as well as the applications at business level, are studied on a more advanced stage compared to the basic knowledge acquired on the First Cycle Level Course of MA.
Another aim is to decrease the differences, if any, in knowledge and competence in management accounting and control, due to different backgrounds among the students.
Mastering the course, the student will have deeper knowledge and understanding about MA issues, including its problems and difficulties; they will be updated concerning the more recent development in MA and the emergence of new methods and have insight in and understanding of the philosophy behind MA methods.
The course will allow Students to familiarize with the more advanced techniques of cost accounting and strategic management accounting (e.g. RCA). This module builds on the basics of cost accounting already studied in deep during the Bachelor Degree and will allow students to use and evaluate the more advanced techniques in a concrete setting.
Moreover the course will provide insights in how financial (accounting, market) and non-financial information can be used to steer all employees towards the overall goals of an organization.
The MA Decision Technique module takes a holistic approach, combining both quantitative and qualitative aspects of management decision making with a strong interdisciplinary perspective.
Quantitative tools are shown in context so that students can see their relevance to day-to-day decision making. The role of IT in decision making is also addressed. The modules explores the relationship between hard and soft aspects of decision making by addressing their philosophical underpinnings.
Becoming proficient in the course the student will be able to critically analyze both older and newer MA methods and their effects in organizations. Beside the student will improve the ability a) to reason independently, logically and clearly, in an internally consistent and content-oriented manner and all of this in line with accepted scientific methods; b) to reflect critically and to question scientific findings, c) to reflect critically beyond the boundaries of established paradigms, d) to reflect critically on one's own knowledge, skills and attitudes and follow up on the possible consequences of these reflections, e) to set personal knowledge acquisition as a goal and act accordingly.
The student on a real business basis will be able to take part in the design and use of the management accounting system in organizations and will be able to analyze complex problems in absence of a clear-cut solution and do so from various vantage points, to solve real-world problems in a critical and systematic way, to use accounting data adequately in support of management decisions.
It is assumed in this course that students have an appreciation and good understanding of the basic cost accounting and budgeting concepts and techniques. Hence suggested prerequisites are Basic Financial Accounting, Basic Management Accounting, Basic Statistics and Spreadsheet software.
Course contents summary
Management Accounting helps organizations to create value through improved decision making and control of organizational members.
This course yields insights into both planning, decision-making and into performance evaluation and control.
The course examines some of the current issues in Management Accounting, which has been (even more during the last decades) in the process of continual change.
Nowadays an increasing number of firms are using innovative Management Accounting techniques such as TD ABC, RCA and strategically oriented performance measurement systems, which the course is addressing.
1) Time Driven Activity Based Costing
2) Resources Consumption Accounting
3) Business Simulation, Spreadsheet and "Crystal Ball" Formulations
4) Markov Chains with stationary tradition probabilities applied to Management Accounting Decision Making
5) Management Control Systems and Responsibility Accounting
6) Enterprise Resources Planning and Business Intelligence.
The main reference textbooks and articles are:
Balakrishnan Ramji et alii (2012) "Product Costs as Decision Aids: an Analysis of Alternative Approaches", Accounting Horizons, vol 26, n. 1, pp. 1-41.
Everett Patricia et alii (2008) "Sanac Inc.: From ABC to time-driven ABC (TDABC) – An instructional case", Selected Material from, Journal of Accounting Education, n. 26, pp. 118–154.
Anderson, David R. et alii (2011) "An Introduction to Management Science. Quantitative Approaches to Decision Making", CENGAGE Learning, International Edition, 13th edition.
Horngren, Charles T. et alii (2014) "Introduction to Management Accounting", Pearson, Global Edition, 16th edition.
Monk Ellen F. et alii (2013) "Concepts in Enterprise Resource Planning", CENGAGE Learning, International Edition, 4th Edition.
The teaching will consist of lectures, seminars and individual literature studies.
Beside, active learning methodologies are applied giving the course a rather un-traditional, highly interactive design. The pedagogical idea is to help the students understand sophisticated and sometimes abstract theories through the use of illustrative examples and cases that are easy to relate to.
Seminars, in which first the new theory is discussed, are followed by a highly interactive session in which groups of students present their solution to selected case material.
Assessment methods and criteria
Students will be examined and assessed on knowledge and skills taught directly on class materials covered during Lectures through a Final Written Exam.
More specifically, to assess knowledge of topics, communication skills, appropriate use of terminology and independence of judgment, students will be required to:
a) answer 1 extended open question (10 points);
b) 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).
As usual the Registrar schedules all final examinations, including deferred and supplemental examinations. The Registrar will post the schedules of final examinations as early in a term as possible.
Writing periods for final examinations usually start at 11 am. The class will have final examinations of 1 hour and 30 minutes duration.
Disability Support: any student with a documented disability condition (e.g. physical, learning, psychiatric, vision, hearing, etc.) who needs to arrange reasonable accommodations should contact me as soon as possible at the beginning of the semester. Students with special needs should also contact Disability Support Services on campus.