• 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
• The ability to properly apply the theories and concepts learned in the course to case examples
• Provide a reflected analysis of the pros and cons of the different theories, concepts, and systems discussed in the course
• Reflect on and assess the value and relevance of specific management accounting systems in a particular organizational setting.
• Present thoughts and analysis in a well-structured and clear manner

Aim of the course

The overall purpose of this course is to learn how to understand, implement and discuss managerial accounting concepts and tools used to manage organizational operations in the short and long run as well as at the local and global level.

Managerial Accounting aims to give students knowledge about how companies are using Managerial Accounting as a strategic technology for controlling. The economic control is using information about costs, prices, benefits, resources etc. to make decisions on a local or central level in a way to secure the best possible result for the company. 

More specifically, Managerial Accounting will address the planning and organizing of a company, with a focus on calculations, design, and implementation of performance goals, measuring and reporting, and interpretation of the achieved results. This is giving the opportunity to handle practical tasks in the operation (e.g. budgeting) and to view every single task in a more overall perspective.

During the course, the following central issues will be presented and discussed:

• The nature of costs and cost allocation
• Opportunity cost
• Organizational architecture
• Transfer pricing
• Budgets
• Absorption cost and standard cost
• Variances 

Contents
The course relies on lectures, exercises, and case-discussions of different issues in the field of managerial accounting. More specifically, the topics include the analysis of costs and cost behavior, standard and activity based-costing, break-even analysis, planning, and budget preparation, divisional performance measurements but also some basic financial statement analysis.

Zimmerman, Jerold

Accounting for Decision Making and Control, latest ed.

McGraw-Hill.

Please note: these reading materials are only tentative and changes may occur. Final literature lists will be uploaded on CANVAS before the course begins.