Learning objectives
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 in Management Accounting at Bachelor's degree level.
At the end of the course, the students will be able to:
a. Comprehend the contents (Knowledge and understanding) of advanced costing methodologies (such as Time-Driven Activity-Based Costing, Activity-Based Costing, Resource Consumption Accounting, and GPK), and decision-making and planning in contexts characterized by first-best conditions and business risk (such as linear programming and probabilistic forecasting to management accounting), then the knowledge concerning the use of some software aimed at optimizing company objectives, such as Solver and Wolfram Alpha (Wolfram Mathematica);
b. The ability to apply the acquired knowledge and understanding to prepare an analysis of production costs or, more generally, to determine the value of a 'cost object' through the use of advanced costing systems such as Time-Driven Activity-Based Costing and Activity-Based Costing. Likewise, students will have acquired the ability to apply and use some software (MSExcel/Solver, and Wolfram Alpha) to facilitate decision-making and business planning processes and, therefore, to solve business decision-making problems (income optimization, the definition of the optimal production mix, of budgeting subject to production and market constraints) through an analytical approach.
c. The autonomy of judgment in the evaluation of the opportunity to apply the multiple methodologies in the processes of cost evaluation and therefore to critically evaluate in comparative terms the quantitative consequences of the application of Activity-Based Costing, TD-ABC, and traditional quantitative techniques for determining the value of the ‘cost object’. Likewise, students will have acquired an independent judgment in evaluating the multiple analytical approaches to company forecasts and decision-making (linear and probabilistic optimization) and the quantitative consequences given their application.
d. The communication skills consisting in the ability to deal with experts in the field (internal controllers, management accountants, chartered accountants, and administrative managers) on the preparation of management accounting reports (for determining the value of production costs, analysis of business budgets in contexts characterized by multiple constraints) as well as reading and interpretation of the same.
e. The ability to learn through the use of multiple sources (not just textbooks) but also through the direct use of Management Accounting Principles of IMA and CIMA.
Prerequisites
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 unit content
The contents of the course are related to "Strategic Management Accounting", then to specific advanced management accounting topics, in compliance with the Institute of Management Accountants, IMA, and the Chartered Institute of Management Accountants, CIMA.
In particular, the contents include the following topics:
1. Advanced Budgeting and Performance Analysis subject to various constraints under conditions that can be represented through the use of linear programming and stochastic analysis. Therefore, two management apps are introduced to support planning and "Business Decision Making": Solver (MS-Excel add-in) and Wolfram Alpha (Wolfram Mathematica).
2. Costing Systems, among others Time-Driven Activity-Based Costing, Resources Consumption Accounting, RCA and Granzplennung Kostenrechnung, GPK.
3. Strategic Performance Measurement.
Full programme
1) Managerial Accounting And Cost Concepts.
2) Master And Advanced Budgeting.
3) Performance Analysis.
4) ABC, TDABC, GPK, And RCA: Tools To Aid Decision Making.
5) Strategic Performance Measurement.
Bibliography
Prof. Andrea CILLONI
Advanced Management Accounting. The Probabilistic Approach.
McGraw-Hill Education CREATE, 2021
Teaching methods
Acquisition of knowledge: mixed method, with streaming lessons, video-recorded lessons, and face-to-face lessons
Acquisition of capability in applying knowledge: calculations
Acquisition of autonomy in judgment: calculations
Acquisition of learning skills: lectures developed in mixed-method and seminars will present problematic situations and stimulate the focus on critical issues and propose appropriate solutions.
Acquisition of technical language: during the course will be illustrated the main management accounting words
The slides used to support the lessons are loaded weekly on Elly; the same for integrative documents, in particular related to the exercises. To unload the slides the registration is necessary for the course online. For good preparation of the examination, it is fundamental the use and the study of the text of reference; the slides are used only as a support for the lessons and they don't replace the text.
Assessment methods and criteria
Written exam.
Verification of learning is carried out with a written test of 90 minutes with 8 questions and 8 multiple choice exercises:
- 8 questions related to theoretical aspects of the program; 2 essay questions and 4 multiple choices questions; the latter have three possible answers;
- 4 exercises related to practical aspects; each exercise has three possible answers.
Questions and exercises have the same weight on the final evaluation.
The 2 essay questions assign 4 points each in case of the correct answer, 1 to 3 points each in case of the partially correct answer, and 0 points in case of the wrong answer, for a maximum total of 8 points; the 4 multiple choice questions assign 2 points each in case of the correct answer, 1 point in case of the partially correct answer, and 0 points in case of the wrong answer, for a maximum total of 8 points.
The 4 exercises assign 4 points each for each correct answer, 0 points in case of wrong or missing answer, for a maximum total of 16 points.
The rating scale is 0-32; the student who reaches the evaluation of 31 and 32 achieves the evaluation of 30 and “lode”.
The questions aim to measure the level of knowledge acquired, communication skills, adequacy in the use of technical language and
the autonomy of judgment.
The exercises aim to measure the applicative skills of knowledge.
The use of a calculator is allowed during the test.
The program for attending and non-attending students is the same.
The use of Respondus Software during the on-line session, a must in the Covid period, may be evaluated.
The test results are published on the ESSE3 portal.
Other information
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.
