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2019/2020  BA-BHAAV1058U  Management Accounting and Control Systems

English Title
Management Accounting and Control Systems

Course information
Language English
Course ECTS 7.5 ECTS
Type Elective
Level Bachelor
Duration One Semester
Start time of the course Autumn, Third Quarter
Timetable Course schedule will be posted at calendar.cbs.dk
Max. participants 70
Study board
Study Board for BSc in Economics and Business Administration
Course coordinator
  • Melanie Lucia Feldhues - Department of Accounting (AA)
Main academic disciplines
  • Management
  • Accounting
  • Strategy
Teaching methods
  • Face-to-face teaching
Last updated on 12-05-2020

Relevant links
Learning objectives
This course develops the student’s ability to participate in a professional debate concerning the solution to a business issue. This involves structured thinking and presentation of arguments, the ability to analyze counter-arguments in a timely fashion and relate constructively to other people’s suggestions.
  • Describe the theories and models that are taught in the course
  • Apply the theories and models of the course in case study settings
  • Identify and analyze management accounting issues and management control issues
  • Evaluate management control systems and management accounting practices
  • Recommend courses of action for management with respect to their management accounting practices and control systems
Course prerequisites
The students should have knowledge of basic concepts of Financial Accounting

Please note that the elective course gives priority to HA students who wish to write their bachelor project in this elective course, but is open to others if capacity allows it.
Examination
Management Accounting and Control Systems:
Exam ECTS 7,5
Examination form Home assignment - written product
Individual or group exam Individual exam
Size of written product Max. 15 pages
Assignment type Written assignment
Duration 24 hours to prepare
Grading scale 7-point grading scale
Examiner(s) One internal examiner
Exam period Winter and Spring
Make-up exam/re-exam Oral 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
Examiner(s): If it is an internal examination, there will be a second internal examiner at the re-exam. If it is an external examination, there will be an external examiner.
Aids: Limited aids, see the list below
The student is allowed to bring to the preparation room
  • Books (including translation dictionaries), compendiums and notes in paper format.
The student is also allowed to bring simple writing and drawing utensils (non-digital). Students are not allowed to communicate with others during the preparation time.
Course content, structure and pedagogical approach

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 management accounting are introduced, but the main focus is on financial results control systems ranging 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 to be able to influence an organization to actions and behavior that will increase goal congruence and the 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 targets
    • 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
  • Control remedies to performance measurement issues with particular focus on the Balanced Scorecard
  • Situational influences (e.g., corporate strategy) on management control systems
  • Management control considerations for nonprofit organization
  • Corporate control roles and the organization of corporate governance
  • Management control related ethical issues

 

The class is very interactive and focuses on both theory and problem-solving skills. In line with the learning objectives, students will be assigned to groups who are going to a) present one case study and b) discuss (and challenge) one case study solution throughout the course. Groups and dates will be published on learn after the first session. Since the exam format is an oral exam, active student participation is crucial.

 
Description of the teaching methods
Lectures and case presentations and discussions
Feedback during the teaching period
Class feedback during and after cases solved in class
Student workload
Lectures 36 hours
Preparation 140 hours
Exam 30 hours
Expected literature

TEXTBOOK

  • Merchant, K. A.; Van der Stede, W. A. (2017): Management Control Systems. Performance Measurement, Evaluation and Incentives. 4 th edition, Prentice Hall, Harlow.

 

ACADEMIC ARTICLES

  • Abernethy, M. A. (1996). Physicians and resource management: The role of accounting and non-accounting controls. Financial Accountability & Management, 12(2): 141–156.
  • Kaplan, R.; Norton, D. P. (2001): Transforming the Balanced Scorecard from Performance Measurement to Strategic Management: Part I. In Accounting Horizons 15 (1): 87-104.
  • Kaplan, R. S.; Norton, D. P. (2008) : Mastering the Management System. Harvard Business Review January: 1- 16.
  • Maas, V. S., and M. Matejka. 2009. Balancing the Dual Responsibilities of Business Unit Controllers: Field and Survey Evidence. The Accounting Review 84 (4): 1233–53.
Last updated on 12-05-2020