| 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 explaining management accounting issues and
management control issues
2) Discuss aspects of the management control systems and
management accounting practices
3) Recommend 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 exam |
| Duration |
20 min. per student, including examiners'
discussion of grade, and informing plus explaining the
grade |
| Preparation time |
No preparation |
| Grading scale |
7-point grading scale |
| Examiner(s) |
Internal examiner and external examiner |
| Exam period |
Winter |
| 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, 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.
Included in this section is also introduction to basic concepts and
calculations in cost accounting.
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. This includes introduction to
concepts and calculations in cost accounting.
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
|
| Description of the 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 case studies and
active class participation is required as well as effective
communication skills in order to practise for effectively applying
management accounting practices in real life organizations. In
addition some more calculation based exercises are used to promote
the understanding of the accounting numbers and methods.
The studenst will get a voluntary group exercise set - that will be
evaluated by the teachers. |
| Feedback during the teaching period |
During classes the students receive feedback from
the teachers and other students through the theory and case
discussions. The students naturally also receive exam feedback in
the grade explanation.
The students will receive short feedback on their group exercises,
if they so choose. |
| Student workload |
| Classes |
36 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.
- Basic cost accounting concepts (hand out)
- 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.
Please note, minor changes may occur. The teacher will
uploade the final reading list to CBS Canvas two weeks before
the course starts.
|
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