ØABED3100 Applied Management Accounting Emneplan

This course is an in-depth study of applied management accounting focusing on its role in decision-making processes, strategy planning and execution embracing stakeholders’ expectations to enhance corporate economic, ethical, social, and environmental performance. The course content is as follows:

• Income effects of alternative cost accumulation systems

• Quantitative models for cost estimation and cost behavior

• Cost-volume-profit analysis 

• Profitability analysis for:

  • Product mix decisions

  • Outsourcing decisions

  • Replacement decisions

  • Discontinuation decisions

  • Cost-volume-profit analysis 

• Decision making under risk and uncertainty

• Capital investment decisions

• Variance analysis for performance management

• Divisional performance analysis and transfer pricing

• Emerging economic, ethical, social, and environmental issues in strategic management accounting and value creation. 

Language of instruction is English.

The course assumes that students are familiar with basic concepts of strategy, financial accounting, and cost and management accounting.

None

After completing the course, the student should have the following overall learning outcomes defined in terms of knowledge, skills and general competence:

Knowledge

The student has

• knowledge of the principles of management accounting.
• knowledge of how management accounting supports decision-making and strategy in different types of businesses.
• knowledge of different processes and methods of planning and control for strategic performance management embracing stakeholders’ expectations.
• knowledge of emerging economic, ethical, social, and environmental issues in strategic management accounting.

Skills

The student can

• describe and contextualize the principles of management accounting.
• apply critical thinking, communication, and practice collaboration to strategic management accounting problems.
• identify the short-term versus long-term trade-offs in simultaneously responding to economic, governance, ethical, social, and environmental issues involved in business decision making.
• make informed decisions in strategic and ambiguous situations by acquiring, analyzing, and presenting information based on management accounting.

General competence

The student

• is aware of the development in corporate sustainability (ESG) drive.
• can rationalize and contextualize corporate decisions to enhance firm value by embracing stakeholders’ expectations.
• can exchange views on economic, ethical, social, and environmental implications of corporate decision making.

This course is delivered by way of lectures and students' group work wherein Peer Assisted Learning (PAL) helps in lifelong learning. This course uses case study method to apply the concepts of the cost and management accounting to enhance corporate economic performance. For this purpose, this course uses MS Excel to analyze for corporate decision making. While writing the case report, the students are encouraged to reflect upon governance, ethical, social, and environmental implications of their decisions for strategy planning and execution embracing stakeholders’ expectations to enhance corporate economic performance.

The following coursework requirements must have been approved in order for the student to take the exam:

• Coursework: One written submission is to be carried out in groups of 2-3 students. However, in some special cases a student may be allowed to work individually. The scope of the submission shall not exceed 3000 words. The information regarding the rollout and the submission deadline will be given in the beginning of the semester.

The coursework must be completed and approved by the given deadline in order for the student to take the exam. If the coursework requirement has not been approved, the student will be given the opportunity to submit an improved version one time by a given deadline.

The exam in the course is a supervised exam of 4 hours.

The following aids are permitted:

• Textbook - Management and cost accounting by Colin Drury.
• One notebook containing hand-written and/or printed notes.
• One dictionary Native language - English/English - native language or English - English

Please note that it is not allowed to bring any loose papers and post-it slips in either the textbook or the notebook.

Grade scale A - F

The exam papers are assessed by one internal and one external examiner.

At least 25% of the exam papers will be assessed by two examiners. The grades awarded for the papers assessed by two examiners form the basis for determining the level for all the exam papers.

Muhammad Azeem Qureshi