Learning outcomes of the course unit
The course introduces students to the fields of cost analysis, budgeting & planning, and business decision making.
With the successful completion of the course students will have mastered:
a) as far as knowledge and understanding is concerned, the Managerial Accounting System, the introduction of Management Science (i.e. of Quantitative Approaches to Decision Making) based on MA information, the different Costing Methods and Techniques.
In addition, students will have acquired knowledge and understanding about the diverse methods and techniques of programming and planning, as well as about the Softwares supporting company decisions (MSExcel and Solver).
b) the ability of applying knowledge and understanding within the Planning and Control Department. Students will be capable to assist and support Management Accountants in determining the costs of product, service and other Cost Objects, as well as in the preparation of Budgets and Capital Budgets, and in the process of Decision Making.
the ability of applying knowledge and understanding assumes a working placement period, possibly a university organized internship.
c) the potential of Making judgements, to evaluate almost independently the issues and opportunities related to the many and varied methods of costing, budgeting and planning in business environments characterized also by risk. Almost autonomously S/he will assist or support the controller in the definition of the economic and financial consequences arising from the use of different MA methodologies.
d) Communication skills consisting in the use of an appropriated technical language used to relate with those involved in the management and financial accounting. The students will have improved their problem-solving skills.
e) Learning skills, specifically the ability to undertake more advanced studies with a degree of autonomy, particularly with reference to the courses of Advance Management Accounting of the Second Cycle Degree.
It is assumed in this course that students have an appreciation and good understanding of Financial Accounting, Quantitative Finance and Statistical Methods. Hence, suggested prerequisites are the courses of Accounting Theory, Financial Accounting, Financial Mathematics and Statistics.
Course contents summary
The course of management accounting emphasizes the internal business-building role of accounting and finance professionals who design, implement, and manage internal systems that support effective decisions, plan, and control the organization's value-creating operations.
The course explores cardinal topics of management accounting in single- and multiple-period business settings also under market and company conditions characterized by risk.
The course covers the following topics:
1) Cost Behavior and Cost Management Systems;
2) Master and Flexible Budget, Capital Budgeting;
3) Management Accounting Decision Theory;
4) Managerial Accounting Tools (e.g. MS Excel and Solver).
1. The Nature of Accounting Systems, and of Management Accounting (MA).
2. The Behavior of Costs.
3. Contribution Margin and Cost-Volume-Profit Relationships.
4. Full Costs and Their Uses.
5. Activity-Based Costing.
6. Strategic Planning and Budgeting.
7. Flexible Budgets and Variance Analysis.
8. Short-Run Alternative Choice Decisions.
9. Longer-Run Decisions: Capital Budgeting.
1) Andrea Cilloni, Programmazione e controllo, McGraw-Hill Education Create, 2017.
2) Readings on the University website Moodle Elly.
Lino Cinquini, Cost Management, Volume I, G. Giappichelli Editore, 2017.
Chapters of the Textbook to be studies (please consider that the title of each chapter is in Italian because the book is in Italian language):
1. Introduction. La natura e lo scopo dei sistemi contabili, p. 2
2. Chapter 1. La natura della contabilità direzionale, p. 10
3. Chapter 2. La classificazione dei costi in funzione del loro comportamento, p. 28
4. Chapter 3. Il margine di contribuzione e le relazioni fra reddito e volume, p. 48
5. Chapter 4. I costi pieni e il loro impiego, p. 68
6. Chapter 5. Ulteriori aspetti dei sistemi di determinazione dei costi, p. 94
7. Chapter 6. La determinazione dei costi basata sulle attività, p. 130
13. Chapter 12. La pianificazione strategica e lo sviluppo del budget, p. 278
15. Chapter 14. Le decisioni di breve termine fra alternative diverse, p. 326
16. Chapter 15. Le decisioni di lungo termine: la scelta degli investimenti, p. 360
21. Chapter 9. Budget flessibili e analisi delle performance, p. 453
The teaching will consist of lectures (Active Learning Techniques are didactically implemented), practice exercises and Businesspeople seminars.
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, including essays (short and long essays) and a calculation.
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 questions (2 points each);
As regards the applied perspective, knowledge and skills will be assessed through an application exercise (10 points).
The duration of final examinations is 1 hour and 30 minutes.
The scores range is 0-30 points.
To be evaluated with a mark of 30 cum laude (with honor) students should get the maximum score on each part of the final exam and have to demonstrate a mastery of the covered topics.
The marks are published on the website Esse3.
During the examination students can use a scientific calculator and Financial Tables.
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.