Course 2019-2020 a.y.

The most important topics we consider during this course are the following:

• Cost definition and cost classification.
• Cost behaviour and Break Event Point analysis.
• Costs and decision making in actual contexts.
• Pricing decisions.
• Traditional and Activity Based Cost accounting systems.
• Job costing and process costing systems.
• Budgets, standard costing systems and variance analysis.
• Reporting systems.
• Responsibility accounting.
• Decentralization and performance measurement.
• Transfer pricing.

• Appreciate the role of quantitative accounting techniques to support decision-making.
• Understand the relationships between costs, revenues and profit at various activity levels.
• Comprehend management accounting as models to analyze business decisions and advise on the most appropriate course of action.
• Appreciate the role of the planning and control mechanisms in formulating standards and budgets and in assigning responsibility to managers.
• Understand the principles of cost allocations for pricing, stock valuation, and decision making in marketing, sales and operations. 

• Evaluate the best option in decision making to maximize the company’s result.
• Set profitable prices compared to the costs incurred by the company.
• Define goals and target to meet the expectations of stakeholders.
• Motivate managers to accomplish the expected performances.
• Delegate targets’ acquisition to the team of collaborators.

• Face-to-face lectures
• Exercises (exercises, database, software etc.)

During the lessons, a selected number of exercises are solved in class.

• The exam consists of two partial written tests. Students pass the exam if both tests are positive. The final grade is the average of the two grades (rounded) + additional points.
• During the lessons, 4 small optional assignments are distributed to students without notice. The assignments are individually solved by students and returned to the instructor after 10-15 minutes. Each assignment receives a “pass or fail” grade. Each pass provides one additional point (there are no negative points for fails). In any case, the additional points accumulated during the lessons are optional and not necessary to reach the maximum grade.
• The Written individual exam comprises 5 exercises and 2 qualitative open questions.
• The 5 exercises are addressed to test the role of quantitative accounting techniques to support decision-making; to understand the relationships between costs, revenues and profit at various activity levels; to understand the principles of cost allocations for pricing and to evaluate the best option in decision making to maximize the company’s result.
• The 2 qualitative open questions are addressed to test the comprehension of management accounting as models to analyze business decisions and advise on the most appropriate course of action; to appreciate the role of the planning and control mechanisms in formulating standards and budgets and in assigning responsibility to managers to set profitable prices compared to the costs incurred by the company to define goals and motivate managers to accomplish the expected performances.
• The individual assignments will be distributed during the course and will be addressed to test the Breakeven Point model, the cost measurement system, the variance analysis and the responsibility accounting.

• The exam consists of a final written exam. In this case, students need to enter one of the formal exam dates.
• The additional points, eventually accumulated during the lessons, are considered valid and added to the final written exam up to the end of February 2019. In any case, the additional points accumulated during the lessons are optional and not necessary to reach the maximum grade.
• The Written individual exam comprises 5 exercises and 2 qualitative open questions.
• The 5 exercises are addressed to test the role of quantitative accounting techniques to support decision-making; to understand the relationships between costs, revenues and profit at various activity levels; to understand the principles of cost allocations for pricing and to evaluate the best option in decision making to maximize the company’s result.
• The 2 qualitative open questions are addressed to test the comprehension of management accounting as models to analyze business decisions and advise on the most appropriate course of action; to appreciate the role of the planning and control mechanisms in formulating standards and budgets and in assigning responsibility to managers to set profitable prices compared to the costs incurred by the company to define goals and motivate managers to accomplish the expected performances.
• The individual assignments will be distributed during the course and will be addressed to test the Breakeven Point model, the cost measurement system, the variance analysis and the responsibility accounting.

• The reference textbook is: HORNGREN, SUNDEM, BURGSTAHLER, et al., Introduction to Management Accounting, Pearson Prentice Hall, 2014, Sixteenth Edition (chapters 1-14 version or chapters 1-17 version).
• The course materials (slides, solutions, mock exams, etc.) are available on the e-learning at Bocconi.