BUSM067 Advanced Management Accounting
This course provides an advanced overview of current theoretical and practical developments in the areas of management accounting with a focus on control, which is an essential function of management to ensure that the organisation's objectives and strategies are carried out effectively. Management control is defined as the systematic process by which the organization’s higher-level managers influence the organization’s lower-level managers to implement the organization’s strategies. The aim is to develop a critical understanding of the behavioural and cultural implications of management control in organisations.
Specifically, the course explores the formal and informal elements of management control systems as well as the link between control and strategy. It critically examines a range of contemporary issues in management accounting and control such as decentralization, strategic management control tools (value chain analysis, target pricing, and balanced scorecard), budgeting and responsibility accounting, performance measurement and analysis, and the assignment of various forms of organisational rewards, such as compensation and incentives etc.
60% Exam and 40% Coursework: Essay
This course aims:
- To provide students with wider understanding of management accounting by locating management accounting in socio-political, economic and cultural context.
- To support and encourage education and learning, and foster the capacity for individual study.
- To encourage and facilitate critical and analytical thinking as a foundation for subsequent academic study, employment and personal development.
- To provide the necessary support to enable the successful completion of the degree.
- Develop active learning and self-assessment skills.
At the end of the course students should be able to:
- understand the history and development of management accounting and control tools
- understand the strengths and limitations of contemporary approaches to performance measurement and control
- develop critical thinking about the behavioural and ethical implications of management accounting and control in organizations
- understand the influence of corporate strategy on management accounting with reference to value chain analysis, the balanced scorecard and various financial and non-financial performance measures
The module comprises 11 lectures (1 session x 2 hour) and 10 x 1 hour workshops.
The lecture each week typically provides an introduction, conceptual analysis, and discussion of the key facets of the topic. The seminar offers a further discussion and expansion of the issues through case study analysis and real-world applications. The case study analyses and discussions permit the exploration of management control issues in a broad range of settings. The case method of instruction, however, requires good advance preparation by the students, and every person should be ready to contribute to the case discussion when called upon.
The main topics studied are:
- Methodological issues in management accounting and control
- Organizations and their environment
- Decentralization, control & compensation
- Strategy and management control
- Budgeting and beyond budgeting
- Performance measurement and analysis
- Responsibility accounting, financial performance measures, and transfer prices
- Measuring non-financial performance: the balanced scorecard
- Management control challenges in knowledge-intensive firms