Learning objectives
a. Knowledge and understanding: students will acquire knowledge and understanding of advanced costing methodologies, decision-making and planning in contexts characterized by first-best conditions and business risk, and eventually of business performance analysis.
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 GPK. Beside students will be able to apply and understand advanced budgeting systems and performance evaluation and reporting techniques. Likewise, students will have acquired the ability to apply and use some software (MSExcel/Solver, and Wolfram Alpha).
c. Autonomy of judgment: the student will be able to profitably deal with the interpretative logic of alternative costing systems, business programs (including flexible ones) and modern reporting systems, also through the acquisition of an interpretative model suitable for a possible in-depth study of the subject.
d. Communication skills: at the end of the course, students will acquire the ability to analyze problems (problem solving skills), the interpersonal skills and the communication skills in written and oral form in an effective way, using an appropriate language to discuss those issues with different stakeholders.
e. Learning skills: the course aims to support students learning through a correct approach to the individual study and through the development of classroom exercises.
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.
2. Costing Systems, among others Time-Driven Activity-Based Costing, and Granzplennungkostenrechnung, GPK.
3. Strategic Performance Measurement.
Two management apps are introduced to support planning and "Business Decision Making": Solver (MS-Excel add-in) and Wolfram Alpha (Wolfram Mathematica).
Full programme
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Bibliography
CILLONI A.
Advanced Management Accounting. A Probabilistic Approach.
Giappichelli Ed., 2022
Teaching methods
Acquisition of knowledge: lectures.
Acquisition of the ability to apply knowledge: exercises.
Acquisition of judgment: exercises and classroom discussions.
Acquisition of learning skills: development of guided exercises and case studies.
Acquisition of technical language: The meaning of commonly used terms is explained, and classroom discussions aim to encourage the correct use of terminology.
The teaching material will be enriched with video recording of the lessons or with other material to be made available on the Elly page of the course.
Assessment methods and criteria
The verification of learning will be carried out by means of an examination held in written form, with the possibility of an oral examination for all or part of the participating students if the results of the written test do not permit an effective assessment of individual preparation. The written exam consists of two parts. The first relates to the theoretical part in Management Accounting and consists of two open questions (for which a broad answer is required; rating 10 points each) and twelve short questions (unit rating, 1 point; MCQ, F&TQ, Short Essays). The second is practical in nature and consists of two calculation relating to costing, budgeting and performance analysis (15 points each).
The duration for the exam is 90 minutes.
Knowledge and ability to understand (a) will be ascertained through the broad questions that are intended to assess the student's knowledge of the topics and ability to make connections between them; the short questions cover a wider range of content and are intended to test knowledge of all topics covered in the syllabus. The ability to apply knowledge and understanding (b), autonomy of judgment (c), and the ability to learn (e) will be ascertained both through open-ended questions formulated in such a way as to require the student to make connections between topics and through exercises that require the application of accounting concepts with reference to costing, budgeting and performance analysis. Communication skills (d) will be ascertained both through open-ended questions for which appropriate language is required and through specific (short essay) questions designed to verify correct understanding and appropriate use of the terminology employed.
The two parts will be evaluated in 30/30, the final mark will be the average of the single evaluations obtained in the two parts. 18/30 is needed in both parts of the exam. Laude will be given to those particularly deserving students who, in addition to having complied with the requirements necessary to obtain a full assessment, in carrying out the exam have demonstrated an overall appreciable systematic knowledge of the subject, an excellent ability to apply the knowledge acquired to the specific problem in question, a significant autonomy of judgement, as well as special care in the formal drafting of the report.
Moreover, the assessment of learning skills will consider the incurrence of intermediate tests during the course.
The results will be communicated via the Esse3 platform. Any further information will be provided through the Elly platform.
Other information
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2030 agenda goals for sustainable development
This teaching contributes to the realization of the UN objectives of the 2030 Agenda for Sustainable Development
