20353 - MANAGERIAL ACCOUNTING - PREPARATORY COURSE

To feel comfortable in this course, a preliminary knowledge of basic financial accounting and financial statement analysis (basic) could be useful.

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.

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

Introduction to Management Accounting Concepts:

• Definition, description and classification of different cost categories.
• Understand the associations between cost drivers, variable costs, and fixed costs, and the major assumptions underlying the definitions of variable and fixed costs.
• The concepts of contribution margin, breakeven point, and cost-volume-profit analysis.

Cost accounting systems:

• Introduce cost allocation and the computation of overhead rates.
• Understand the differences between traditional cost systems and Activity-Based Costing (ABC).

Budgets and analysis of variances. Decentralization and Performance Measurement:

• Flexible budgets and standard costs as aids for planning and control.
• The functioning of standard costing systems.
• Variance analysis between actual and standard costs.
• Computation and meaning of volume variances and the effects of capacity utilization on performance evaluation.

Decentralization and Performance Measurement:

• The reasons behind decentralization and understand the concept and various forms of responsibility accounting.
• The nature of performance evaluation in business units.
• Understand the nature of intra-firm transactions and the importance of proper accounting for them.

• Recognize the key elements related to the design and functioning of performance measurement and control systems (PM&CS) from a theoretical viewpoint.
• Recognize the process used by companies to deploy strategic objectives.
• Achieve a knowledge level consistent with most of masters of science.

• Demonstrate those technical skills related to some specific PM&CS and tools, such as cost measurement, performance measurement, variance analysis,  from the perspective of managers (both functional/business units and corporate ones).
• Face problems and questions related to performance measurement and control systems (PM&CS) through analytical reasoning and critical thinking.
• Use a formal language for the explanation of performance measurement and control systems (PM&CS) issues and enhance their communication and presentation skills.

• Lezioni online
• Esercitazioni (esercizi, banche dati, software etc.)
• Analisi casi studio / Incidents guidati (tradizionali, multimediali)

The course balances theoretical frameworks and practical use of methodologies in solving problems and exercises.

N.A.

self evaluation test could be delivered if asked

The main course material are uploaded on Bboard platform and include:

• Slides
• Exercises
• Cases
• Suggested readings: C.T. HORNGREN, G.L. SUNDEM, W.O. STRATTON et al., Management accounting, Pearson Prentice Hall, 2007.