30007 - PROGRAMMAZIONE E CONTROLLO / MANAGERIAL ACCOUNTING
For the instruction language of the course see class group/s below
Class group/s taught in English
This course emphasizes the use of accounting information for internal planning and control purposes. The course is intended as an introduction for individuals who make business decisions and evaluate the performance of business units using data obtained from the accounting system. The course covers the vocabulary and mechanics of cost accounting, basic issues involved in the design of a cost accounting system, and the role of management accounting in decisions concerning resource allocation and performance evaluation. Lessons generally consist of an overview of each topic and the discussion of incidents, cases and exercises.
The most important topics we consider during this course are the following:
- Define and illustrate cost objects, direct costs, and indirect costs.
- Understand the associations between cost drivers, variable costs, fixed costs, and the major assumptions underlying the definitions of variable and fixed costs.
- Distinguish between job costing and process costing, and relate their value to the nature of the underlying production process.
- Introduce cost allocation and the computation of overhead rates.
- Activity-Based Costing and Cost Allocation.
- Introduce flexible budgets and standard costs as aids for planning and control.
- Introduce the reasons behind decentralization and understand the concept and various forms of responsibility accounting.
- Examine more generally the nature of performance evaluation in business units.
- Understand the concepts of contribution margin, breakeven point, and cost-volume-profit analysis.
- Learn how variances between actual and standard costs can be broken into price and efficiency variances to assist in assigning responsibility and examining the variances' causes.
- Understand forecasting processes and performance appraisal mechanism.
- Apply ABC concepts in an actual decision-making context to understand the effect of cost accounting methods on perceived product profitability, and the use of ABC data in operational and marketing decisions.
- Compute the product cost.
- Design a budget process in a manufacturing company.
- Apply the acquired technical knowledge to solve real-life problems experienced by companies having to design and use cost measurement techniques.
- Use a formal language for the explanation of management control systems (MCS) issues and enhance their communication and presentation skills.
- Face-to-face lectures
- Exercises (exercises, database, software etc.)
- Case studies /Incidents (traditional, online)
The learning experience of this course includes, in addition to face-to-face lectures, case discussions, real examples and exercises that are coping with specific Management Accounting & Control issues. As we use case studies and exercises, describing “real-life” situations and showing that there are several possible solutions to multifaceted problems, studentsdeal with the identification and analysis of complex, open-ended issues. This is expected to enhance their ability to decide through information. To identify the salient issues is a vital skill in business today as managers in practice face the problem of dealing with large volumes of information. The topic covered during this course should be seen as important preparation for their career.
|Continuous assessment||Partial exams||General exam|
The exam is written. It is also possible to take two partial exams, one by the middle and one by the end of the course. The good result of the two partial exams can replace the final written exam.
The assessment of non-attending students is entirely based (100% of the final grade) on the final written exam.
The main course material, for both attending and non-attending students, is:
- C. DRURY, Management Accounting for Business, Cengage Learning, 6th edition.
- In addition to Drury’s textbook, slides, case studies and exercises are provided during the course. Students need to refer to the Bboard platform.