MANAGEMENT ACCOUNTING
cod. 1001365

Academic year 2015/16
3° year of course - Second semester
Professor
Academic discipline
Economia aziendale (SECS-P/07)
Field
Aziendale
Type of training activity
Characterising
63 hours
of face-to-face activities
9 credits
hub: PARMA
course unit
in - - -

Learning objectives

The course goals are to develop an understanding of cost analysis, budgeting and to develop business decision making skills using management accounting information. This will be achieved in in two educational stages, distinct but closely related.

The course in the first part aims to examine the principles of management accounting, including the techniques of operations research, decision theory, as well as the methods of determining the cost of a "cost object": product, service, business segments, and so on. In this context, the course also examines the "human factors" that influence costing decisions in business context characterized by risk and asymmetric information, and moreover the MA standards.

The course in the second part focuses on the ultra-complex processes of programming and planning (budgeting, capital budgeting, scorcard based methods) in business conditions characterized by flexibility and probability, as well as on ICT systems to support the management.

At the end of the course students will have mastered:
a) knowledge and understanding concerning the business Managerial Accounting System, the Standards of Business Ethics applicable to Management Accountants, the main Statements of Management Accounting, the various Costing Methods and Techniques, the traditional and innovative methods and criteria for business decision making based on MA information. In addition, students will have acquired knowledge and understanding about the diverse methods and techniques of programming and planning, as well as about the Enterprise Resources Planning Systems favouring company forecasts.
b) the ability of applying knowledge and understanding within the Planning and Control Department of SME, as well as large size enterprises. Students will be capable to assist and support Management Accountants in determining the costs of product, service and so on, as well as in the preparation of business plans and programs, and in the process of Decision Making through ERP and BI systems.
c) the potential of Making judgements to evaluate independently the issues and opportunities related to the many and varied methods of costing and budgeting and planning in business environments characterized by risk and uncertainty. In autonomy will assist or support the controller in the definition of the economic and financial consequences arising from the use of different MA methodologies and ICT tools.
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, the relational capacity and expression, both written and oral. The latter will allow them to liaise with business stakeholders and submit their conclusions regarding studies and analyzes, expressing clearly their reasoning. The acquisition of communication skills is facilitated through active student participation in tutorials and case studies.
e) Learning skills, the ability to undertake more advanced studies with a degree of autonomy, particularly with relevance to the courses of Advance Management Accounting.

Prerequisites

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Course unit content

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, and support, plan, and control the organization's value-creating operations.

This course covers cardinal topics of management accounting and introduces a business management approach to the development and use of accounting information. It examines single- and multiple-period business decisions, taken under market and company conditions characterized by risk, and information asymmetry.

This course examines, in the context of management accounting, organizational (so-called. Human factors) and ICT (ie Enterprise Resource Planning, Business Intelligence and Advanced Social analytics, Mobile solutions) variables.

During the first term major topics include Management Accounting cycle, MA Ethics, Decision-Making, Cost Classification, Cost Behavior, Cost-Volume-Profit Analysis, ERP and BI Systems.
In the second term major topics include Budget and Variance Analysis, Capital Budgeting, and fundamentals of the advanced Managerial Accounting Tools.

Full programme

- Managerial Accounting: An Overview.
- Management Accounting and Business Ethics.
- (International) Management Accounting Standards/Statements.
- Managerial Accounting and Business Decision Making.
- Managerial Accounting and Cost Concepts.
- Job-Order Costing.
- Process Costing.
- Cost-Volume-Profit Relationships.
- Variable Costing and Segment Reporting.
- Activity-Based Costing.
- TDABC e RCA. Résumé.
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- Budget.
- Flexible Budgets and Performance Analysis.
- Standard Costs and Variances.
- Differential Analysis.
- Capital Budgeting.
- Enterprise Resource Planning, Business Intelligence and Advanced Social Analitics, Mobile Solution.
- Balanced Scorecard, Tableaux de bord and Strategic Scorecard, ABB, Ronning Plans. Résumé.

Bibliography

- Ray H Garrison, Eric Noreen, Peter C. Brewer, Managerial Accounting, 2015, 15th Edition, ISBN-13 9780078025631.
- Professor's lecture notes.

Teaching methods

Lectures, exercises, seminars and case studies.

Assessment methods and criteria

The exam is based on a written and an oral tests weighted 20/30 and, respectively, 10/30.
The written test consists of questions and exercises evaluated 14/30 and, respectively, 16/30. The questions consist of two essays, two short essays, and two multiple choice. One of the two exercises concerns the first section of the course, eg decision theory, costing, etc., the other the part 2 of the course, eg. budgeting, planning, etc.
Will be admitted to the oral exam the students who pass the written test.
The questions of the written and oral tests are intended to verify knowledge and understanding, making judgements, communication skills, and learning skills. Exercises aim to evaluate applying knowledge and understanding.

Other information

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