| Learning objectives |
After having completed the course the students
should be able to
a) describe the theories and models that are taught in the course
(as described in the course content and its elements)
b) Apply the theories and models of the course in case study
settings by:
1) Identifying and analyzing management accounting issues and
management control issues
2) Evaluating management control systems and management accounting
practices
3) Recommending courses of action for management with respect to
their management accounting practices and control
systems. |
| Course prerequisites |
| English language skills equal to B2 level (CEFR)
and math skills equal to Danish level B are recommended |
| Examination |
|
Management
Control Systems:
|
| Exam
ECTS |
7,5 |
| Examination form |
Oral Exam |
| Individual or group exam |
Individual |
| Duration |
20 min. per student, including examiners'
discussion of grade, and informing plus explaining the
grade |
| Preparation time |
With the listed preparation time: 20
Minutes |
| Grading scale |
7-step scale |
| Examiner(s) |
Internal examiner and second internal
examiner |
| Exam period |
December/January |
| Aids allowed to bring
to the exam |
Limited aids, see the list below:
Literature and notes for the class |
| Make-up exam/re-exam |
Same examination form as the ordinary exam
|
Description of the exam
procedure
The student is expected to
describe the subject area, explain the concepts and theory that
relate to it, and to illustrate his/her understanding of the
subject by applying the concepts and theory to a case. In the
beginning the student speaks independently, after which the
examinators will ask questions, and at the end the examinators will
often take control of the exam to ensure that specific
subjects are covered.
|
|
| Course content and structure |
|
The aim of the course is to provide the student with both
theoretical understanding and practical skills of management
control systems and management accounting practices.
Management control systems are perceived as a mechanism to
increase the likelihood for an organization to 1) achieve its
objectives and 2) utilize resources efficiently when implementing
strategies.
Additionally, the management control system can become an early
warning system for feeding back information to the strategic
planning and control system. Alternatives to traditional management
accounting are introduced. However, the main focus is on
financial results control systems going from planning and budgeting
models to balanced scorecards.
The student will learn to integrate performance measurement,
evaluation, and incentives as part of a management control system
so as to be able to influence an organization to actions and
behavior that will increase goal congruence and achievement of
objectives. The course also deals with important management control
roles and ethical issues faced by managers and employees.
The course contains the following elements:
- Management control alternatives (results controls, action
controls, and people controls)
- Design criteria for management control systems including
analysis of control tightness and cost vs. benefit
- Financial result control systems used in for-profit
organizations including
• Decentralizing in financial responsibility centers
• Allocating resources effectively with the use of transfer prices
• Planning and budgeting processes
• Determining financial performance measures and targets
- Non-financial perfomance measures
- Designing performance dependent reward systems
- Performance measurement issues and their effects on financial
results control systems, most notably the problems of Myopia and
Uncontrollable Factors.
- Strategic performance measurement issues with particular focus
on the Balanced Scorecard, including non financial performance
measures
- Corporate control roles and the organization of Corporate
Governance
- Management control related ethical issues
|
| Teaching methods |
| The course is taught in two interchanging
formats. Lectures with smaller cases are used to cover the
concepts, theory and models. Analysis and conclusions of longer and
more involved cases are used to acquire a deeper understanding of
the subjects. The course is taught with the use of many case
studies and active class participation is required as well as
effective communication skills in order to train for effectively
applying management accounting practises outside the classroom in
real life organizations. In addition some more calculation based
exercises are used to promote the understanding of the accounting
numbers. |
| Student workload |
| Classes |
30 hours |
| Workshop |
6 hours |
| Preparation for class(including exam) |
170 hours |
| Exam |
1 hours |
|
| Expected literature |
|
- Kenneth A. Merchant & Wim A. Van der
Stede: Management Control Systems: Performance Measurement,
Evaluation and Incentives; Latest edition; Prentice Hall, Pearson
Education. Available at the Campus Book Store.
- Kenneth A. Merchant: The Case Method of Instruction: Suggestions
for Students; Pearson Education Limited, 2004. Available at LEARN.
- Kaplan, Robert S. Kaplan and David P. Norton: The Balanced
Scorecard – Measures That Drive Performance. Harvard Business
Review, January-February 1992 (p. 71-79). Available through the CBS
Library. A link will be provided at LEARN.
- Kaplan, Robert S. Kaplan and David P. Norton: Having Trouble
with Your Strategy? Then Map It. Harvard Business Review,
September-October 2000 (p. 167-176). Available through the CBS
Library. A link will be provided at LEARN.
Kaplan, Robert S. & David P. Norton: “Mastering the Management
System”. Harvard Business Review, January 2008 (p. 62-77).
Available through the CBS Library. A link will be provided at
LEARN.
Sherman, David H., Dennis Carey & Robert Brust: “The Audit
Committee’s New Agenda”, Harvard Business Review, June 2009 (p.
92-99). Available through the CBS Library. A link will be provided
at LEARN.
Please note, minor changes may occur. The teacher will
uploade the final reading list to LEARN two weeks before the
course starts.
|
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