Managerial Accounting
Code
2412
Academic unit
null
Department
null
Credits
3,5
Teacher in charge
Maria João Major
Teaching language
English
Objectives
This course aims to provide an introduction to the theory and practice of managerial accounting and to emphasize its role in making business decisions. Emphasis is given to the presentation of various managerial accounting techniques that can aid managers in decision-making processes.
Prerequisites
N/A
Subject matter
Part I - Introduction to Management and Cost Accounting (Chapters 1 & 2)
1. Introduction to Management Accounting
2. An introduction to cost terms and concepts
3. Functions of management accounting
Part II - Information for Decision-Making (Chapters 3 & 4)
4. Cost-volume-profit analysis
5. Measuring relevant costs and revenues for decision-making
6. Special pricing decisions
7. Outsourcing and make or by decisions
8. Discontinuation decisions
9. Product-mix decisions
Part III - Cost Assignment (Chapters 7 & 8)
10. Cost assignment: the two-stage allocation process
11. Comparison of traditional and activity-based costing systems
Part IV - The Budgeting Process (Chapters 9 & 10)
12. Functions of budgets
13. Sales budget, production budget and budgeted inventory levels, direct materials usage and purchase budgets, direct labour budget, factory overhead budget, selling and administration budget, cash budget, financial budget, budgeted profit and loss account and budgeted balance
14. Criticisms of budgets
Bibliography
BASIC READING:
Drury, C. (2013) Management Accounting for Business, 5th Edition, South-Western/Cengage Learning (ISBN 978-1-4080-6028-5) - Chapters 1, 2, 3, 4, 7, 8, 9 and 10.
Young, S.M. (2011) Readings in Management Accounting, Sixth Edition, Upper Saddle River, NJ: Pearson Education (ISBN 978-0-1370-2503-9).
FURTHER READING:
Bhimani, A., Horngren, C.T., Datar, S.M. and Rajan, M. (2015) Management and Cost Accounting, 6th Edition, Pearson (ISBN 978-129-206-346-1);
Garrison, R., Noreen, E. and Brewer, P. (2014) Managerial Accounting, 15th Edition, McGraw-Hill (ISBN 007-8-0256-3x);
Hopper, T., Northcott, D. and Scapens, R. (2007) Issues in Management Accounting, 3rd Edition, Prentice Hall/Financial Times (ISBN 978-0-273-70257-3);
Chapman, C. S., Hopwood, A. G. and Shields, M. D. (2009) Handbook of Management Accounting Research, Elsevier, Volumes 1, 2 & 3;
Bhimani, A. (2006) Contemporary Issues in Management Accounting, Oxford: Oxford University Press.
Teaching method
The course comprises 6 classes (3 hours each), which consist of presentations about the theoretical aspects of each topic and their application to real-life situations. PowerPoint handouts will be provided. The teaching approach will be based on exercises/case studies, class presentations and discussions with students in order they are able to develop the theoretical and practical knowledge about the concepts, the systems and practices of managerial accounting. Classroom attendance and active participation is expected and required. Students are also encouraged to do some homework regarding the fulfillment of the objectives of the course.
Evaluation method
The evaluation system includes:
On-going assessment (10%);
Group written assessment (30%);
Final exam (60%);
The group written assessment consists of a case study which report is to be prepared in group and delivered to the instructor. The group written assignment is mandatory for all students. On-going assessment is based on class attendance and on instructor´s evaluation of students participation in discussion of cases/exercises prepared for classes. Students are required to get minimum final exam grade of 9 out 20.
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