COSTS IN CORPORATE DECISION-MAKING
Learning outcomes of the course unit
The course explores topics relating to the structure and operation of accounting systems for business decisions. In particular, it deals with aspects of accounting, classification, aggregation and analysis of costs and their movements in relation to various management issues, together with references pertaining to methods of cost management.
Course contents summary
The course sets out to explore the following topics: the characteristics and structure of decision-making processes. The relevance of costs for company decisions. General and management accounting: characteristics and purposes. The concept of cost and its possible applications. Reference to a number of key concepts: cost classification, variability and allocation. Critical aspects in the calculation and allocation of cost items. Cost accounting systems from direct costing to full costing. Cost configurations. Break-even analysis. Product cost calculation systems. Cost-centre accounting explored. Cost calculation starting from a company’s “activities”: analysis and in-depth examination of ABC (activity-based costing). Activity-based and cost-centre accounting: actual results concerning “hybrid” systems. Analysis of variances. Advanced cost management tools: cost objects and configurations for cost management. Activity-based management (ABM) and business management in lean environments (lean accounting). Target costing.
MIOLO VITALI P. (edited by), Strumenti per l’analisi dei costi – Approfondimenti di Cost Accounting, Vol. II, second edition, revised and expanded, Torino, Giappichelli, 2004.
MIOLO VITALI P. (edited by), Strumenti per l’analisi dei costi – Percorsi di Cost Management, Vol. III, second edition, revised and expanded, Torino, Giappichelli, 2004.
Course material provided by the teacher.
Recommended supplementary reading:
CINQUINI L., Strumenti per l’analisi dei costi – Fondamentali di Cost Accounting, Vol. 1, second edition, revised and expanded, Torino, Giappichelli, 2003.
FACCHINETTI I., Contabilità analitica, calcolo dei costi e decisioni aziendali: metodologie, soluzioni operative e casi, Milano, Il Sole 24 ore, 1997.
FERRARIS FRANCESCHI R., Pianificazione e controllo, Vols. I and II, Giappichelli, Torino, 2007.
GARRISON R., NOREEN E., Programmazione e controllo (managerial accounting per le decisioni aziendali), Milano, Mc Graw-Hill, 2008.
HORNGREN C. T., Contabilità per la direzione, Torino, Isedi, 1998.
SELLERI L., Contabilità dei costi e contabilità analitica: determinazioni quantitative e controllo di gestione, 2nd edition, updated, Milano, Etas, 1999
Assessment is through a written test consisting of open-ended questions and exercises.