• Describe and understand the notion of opportunity cost and organizational architecture and explain how they together constitute a framework for analysing management accounting systems in a decision making and a control perspective
• Describe and understand different management accounting systems and discuss their strengths and limitations from a decision making as well as a control perspective
• Analyse the cost of improving accounting systems’ decision making ability and effectiveness as a control device and reflect upon the trade-off between the use of accounting for different purposes
• Critically reflect on and assess the value and relevance of specific management accounting and control systems in a particular organizational setting

Objectives

The purpose of this course is to provide students with an understanding and appreciation of the strengths and limitations of an organization’s accounting systems in regard to management. The course provides a framework for analysing and understanding these accounting systems (like budgeting, reporting, analysis and management of cost, responsibility accounting and transfer pricing as well as the design of comprehensive approaches to performance management). Furthermore, the course reflects on the internal accounting system’s role in keeping the firm and its members honest, responsible, and able to actively engage in activity that is both economically, environmentally and socially sustainable (ie. Manage the triple bottom line).

Class preparation

The material for this course consists of one textbook, selected other readings and cases. It is expected that all students prepare all readings and cases for each class.

Where cases require calculations there will be spreadsheets available containing the exhibits.  It will significantly enhance your learning in the course if you have been able to identify the kind of management accounting decision that each case addresses and made an attempt at applying the appropriate technique to the questions presented using a spread sheet before coming to class.

Given the centrality of spreadsheets as a working tool for management accounting we will address some basic matters of good spread sheet design as we look at the calculations and decisions in the Caribbean internet café case in MA1.

Class participation

The lectures will be conducted in a dialogue manner. Issues and models will be presented, and their potential merits will be open for a dialogue.

Cases will also take up a good part of the teaching, and a thorough analysis of case issues, and suggestions for their solution, will be expected.

The participants’ job experience can often be a useful source for adding to our mutual understanding, and is therefore most welcome.