Insegnamento a.a. 2025-2026

It is widely acknowledged that the survival of any firm depends on its capabilities to generate successful strategic ideas, to motivate its managers to implement strategies, to identify and manage strategic risks and, finally, to create stakeholders’ trust. In these respects, accounting information and performance measurement and control systems play a crucial role. On the one hand, through strategic planning, programming and budgeting, performance targets are set, coherently with strategic and organizational choices, and used to evaluate managers’ accountability. On the other hand, cost accounting, reporting and business intelligence systems serve to communicate to both managers and stakeholders actual performance in a way that fosters learning from experience, enables redirecting ineffective behaviours and supports the generation of stakeholders’ trust.

The first part of the course will focus on data analysis through costing systems. First, there will be an examination of processes and procedures relevant for collecting and classifying accounting information to guarantee the right level of accuracy and relevance. Second, attention will be dedicated to the design and functioning of cost accounting systems, as essential tools for processing cost information for performance measurement and control activities.

In the second part of the course, we will delve into the importance of Performance Measurement and Control Systems for data analytics in generating strategic ideas and in supporting their correct implementation. Hence, we will focus on the design and use of profit plans, segment reporting, asset allocation systems, corporate planning systems, strategic profitability analysis, divisional performance measurement, business intelligence, transfer pricing and incentives. We will also explore a broader view of performance measurement and control by presenting situations where accounting controls per se are not effective. This will allow discussion about topics such as: the use of non financial performance indicators, the importance of corporate values and value systems, the role of business conduct and strategic boundaries and the link between non-financial incentives and motivation. A special attention will be concentrated on the impact that the digital transformation is having on performance measurement and control systems and on sustainability and ESG objectives in achieving results.

Finally, in the third part some attention will be dedicated to the specifics of costing, performance measurement and control systems in professional service firms (e.g. law firms, engineering companies, consulting firms ...)

• Understand the functioning of a cost accounting system
• Evaluate the profitability of products
• Understand how performance measurement and control systems are linked to overall strategy and organisational choices and how they are impacted by the digital transformation
• Assess profit plans and use business intelligence to control and evaluate organisational performance
• Understand the role of transfer prices in managing business units
• Identify and apply non-financial performance measures, and understand the inter-relationships between different performance measures.
• Understand the behavioural and organisational consequences of using performance measurement and performance management techniques.
• Perceive the specifics of performance measurement and control systems in professional service firms.

• Calculate the cost of products and services and evaluate their profitability.
• Design performance measurement and control systems linking them to overall strategy and organisational choices.
• Prepare profit plans and use business intelligence to control and evaluate organisational performance.
• Selct transfer prices to manage business units.
• Design financial and non-financial reporting systems.
• Intrepret the behavioural and organisational consequences of using performance measurement and performance management techniques.
• Design performance measurement systems in professional service firms.

• Practical Exercises
• Collaborative Works / Assignments

Guest speaker’s talks in class, to understand the specificities of performance measurement and control systems in a specific context

Practical exercises to deeply understand the functioning of the methodologies

Collaborative works/assignments, simulations that help to understand the interaction between relevant variables in decision making

The assessment for attending students consists of:

• Two partial written exams and 2 group assignments in class
• The general written exam and 2 group assignments in class

Students of previous years can be attending and do the partial exams with assignments or the general exam with assignments in English and according to the program of the current year.

The assessment for non attending students is represented by a general written exam.

Students of previous years must do the general written exam in English (if belonging to the former English class of the Accounting Financial Management and Control program) or in Italian (if belonging to the former Italian classes of the Accounting Financial Management and Control program) according to the program of last year.

• C. Drury, M. Tayles, Management Accounting for Business, 9th ed. 2025, Ch. 7, 8 uploaded in blackboard
• R.Simons, HBS modules uploaded in blackboard
• Slides, case studies and exercises uploaded in blackboard

The following cases will NOT be part of the required material to be studied for the partial and general exam:

• Cafes Monte Bianco
• Bibitor

All Simons’ modules are MANDATORY except for Modules 1, 2 and 9

• C. Drury, M. Tayles, Management Accounting for Business, 9th ed. 2025, Ch. 7, 8 uploaded in blackboard
• R.Simons, HBS modules uploaded in blackboard
• Slides, case studies and exercises uploaded in blackboard