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2018/2019  KAN-CIMMO1801U  Cost and Management Accounting

English Title
Cost and Management Accounting

Course information

Language English
Course ECTS 7.5 ECTS
Type Mandatory
Level Full Degree Master
Duration One Semester
Start time of the course Autumn
Timetable Course schedule will be posted at calendar.cbs.dk
Study board
Study Board for MSc in Economics and Business Administration
Course coordinator
  • Carsten Rohde - Department of Accounting (AA)
Main academic disciplines
  • Accounting
  • Economics
Teaching methods
  • Face-to-face teaching
Last updated on 21-06-2018

Relevant links

Learning objectives
The purpose of this course is to understand, discuss and be able to implement Management Accounting concepts and tools to manage organizational operations in the short and the long run.
  • Describe and understand the notion of opportunity cost and organizational architecture and explain how they together constitute a framework for analyzing Management Accounting systems in a decision making and a control perspective.
  • Describe and understand different Management Accounting theories and discuss their strengths and limitations from a decision making as well as a control perspective.
  • Use terms, models, perspectives and theories on specific cases to identify Management Accounting problems.
  • Analyze 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 the value and relevance of specific Management Accounting systems in a particular organizational setting.
Cost and Management Accounting:
Exam ECTS 7,5
Examination form Oral exam
Individual or group exam Individual exam
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 Winter
Aids Open book: all written and electronic aids
The student is allowed to bring to the preparation room: Simple writing and drawing utensils, laptop/tablet as a reference book (NB: there are no electric outlets available), any calculator, books including translation dictionaries, compendiums, notes. PLEASE NOTE: Students are not allowed to communicate with others during the preparation time.
Make-up exam/re-exam
Same examination form as the ordinary exam
Course content and structure

The aim of Management Accounting is to give the students knowledge about how companies are using Management Accounting as a tool for planning,  decision making and control. The control dimension of Management Accounting is using information about revenue, costs, prices, resources etc. to make decisions on a local or central level to secure the best possible performance for the company. 


More specific, Management Accounting will address planning and organizing of companies, with focus on calculations, design and implementation of performance goals, measuring and reporting, and interpretation of the achieved results and performances. This gives opportunity to handle practical tasks at the operational level (e.g. by the use of budgets) and further to discuss and evaluate these practical tasks in a more overall, strategic perspective.


During the course, we will discuss:


  • Cost classification and cost concepts
  • Opportunity costs
  • Process and Job Order Costing
  • Variable Costing and Absorption Costing
  • Activity Based Costing
  • Pricing
  • Responsible centers and transfer pricing
  • Budgeting and Budgets
  • Standard Costing and variance analysis
  • Performance measurement and management using financial and non financial data 


Description of the teaching methods
The course is organized in lectures and exercises; the dialog between the class and the lecturer is considered crucial. A high degree of activity from the students is required in order to achieve the best result. The lectures will not necessarily cover all aspects in the literature, but the main problems will be discussed and supported by a number of exercises and problems, which the students are expected to solve before the lectures in class. The purpose of these problems and exercises is to illustrate the theory and to bring an applied dimension into the course. Therefore there will not be a very distinct demarcation between lectures and exercises.
Feedback during the teaching period
During the course the students will have feedback from the lecturer through the topics and exercises discussed.
Student workload
Lectures (11 * 2) 22 hours
Preparation for lectures 55 hours
Exercises (10 * 2) 20 hours
Preparation for exercises 63 hours
Preparation for exam 46 hours
Expected literature

​Seal, W., Rohde, C., Garrison, R.H. & Noreen E.W. “Management Accounting”, 5.ed. McGraw-Hill, 2015.


Selected articles and cases.

Last updated on 21-06-2018