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2023/2024  KAN-CGMAO1003U  Management Accounting

English Title
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 cand.merc. and GMA (GMA)
Course coordinator
  • Catherine Batt - Department of Accounting (AA)
Main academic disciplines
  • Management
  • Accounting
Teaching methods
  • Blended learning
Last updated on 31-03-2023

Relevant links
Learning objectives
At the end of the course, the students should be able to demonstrate the following learning objectives:
  • Understand the purpose and content of different management accounting models and techniques.
  • Apply and use the techniques for different analyses, decision making and planning and control tasks.
  • Analyse and evaluate the strengths and weaknesses of each model and technique used for different tasks.
  • Understand the link between Management Accounting and Data analytics.
Prerequisites for registering for the exam (activities during the teaching period)
Number of compulsory activities which must be approved (see section 13 of the Programme Regulations): 1
Compulsory home assignments
The student must get 1 out of 2 multiple choice assignments approved to attend the ordinary exam.
The compulsory activities are 2 individual multiple-choice assignments.

Students will not have extra opportunities to get the required number of compulsory activities approved prior to the regular exam. If a student has not received approval for the required number of compulsory activities or has been ill, the student cannot participate in the ordinary exam.

If a student, prior to the retake, is still missing approval for the required number of compulsory activities and meets the pre-conditions set out in the program regulations, an extra assignment is possible.
The extra assignment is a 10-page home assignment covering the required number of compulsory activities. If approved, the student will be able to attend the retake.
Examination
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-point grading scale
Examiner(s) Internal examiner and external 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
Description of the exam procedure

The list of exam questions will be handed out to the students before the exam. The students will draw one of the questions at the exam for preparation in 20 minutes. This can include solving a small case/exercise which is not known in advance.
Course content, structure and pedagogical approach

Aim of the course

Managers are expected to be able to contribute to the strategic and financial development of a company. While producing prosperity for the organization they are also expected to protect the prosperity of the next generations. Today, managers need to understand the business they are working in. To do so, they need to understand accounting numbers. Financial and non-financial information for decision-making, planning and follow-up purposes constitutes a central part of today's managers' function in order to identify and support and transform value-creation activities. The ability to handle valid and relevant data about the company's profitability and convert this data into insightful analyses related to the company's value creation will be a decisive success parameter for future managers.

 

The purpose of this course is to allow students to develop a basic knowledge of the role of financial and non-financial information in decision-making, planning and control. The focus will be on the design, implementation and application of various conventional and modern management accounting tools, concepts, and models.

 

Contents 
Competition has increased with technology development. Management accounting has also expanded from historical value reporting to more real-time reporting and predictive reporting. At the same time, organizations are faced with new challenges such as sustainability. The course will also cover the importance of management accounting information for data analytics, including how management accounting as an information system provides revenues and cost information for planning and controlling the business, sales analysis, customer profitability, and how it can facilitate decision-making.

 

The course will cover advanced concepts of management accounting, including when and how good management accounting systems enhance the quality of decision-making and creates a competitive advantage.

The course contains the following core elements of management accounting:

  • Revenue and cost classification and behaviour for decision making and control
  • Different cost allocation methods used for different purposes in different organizations
    • Contribution margin accounting and analysis
    • Absorption costing as a traditional cost allocation method
    • Activity based costing as an advanced cost allocation method
  • Segment profitability analysis 
  • Budgeting as a target setting, planning and management control procedure
  • Standard costing and flexible budgeting 
  • Inclusion of non-financial KPIs - exemplified through The Balanced Scorecard as a measurement and management system 
  • Use of accounting data for strategic management purposes
  • Measurement and management of decentralized organizations
  • The course will address the use of Data Analytics on Management Accounting problems
Description of the teaching methods
Lectures, videos, exercises, and cases.

Feedback during the teaching period
 During the class, students receive feedback from the teachers and other students during the exercise and case discussions.
 The students get feedback from the online quizzes and exercises, including the mandatory assignment.
 There are quizzes and online exercises for all chapters in the main textbook. The main textbook also features a "test as you read" format that the students can use to check progress.
Feedback during the teaching period
Feedback during the teaching period
During the class, students receive feedback from the teachers and other students during the exercise and case discussions.
The students get feedback from the online quizzes and exercises, including the mandatory assignment.
There are quizzes and online exercises for all chapters in the main textbook. The main textbook also features a "test as you read" format that the students can use to check progress.
Student workload
Preparation and participation in dialogue lectures 66 hours
Preparation and participation in exercises and cases 66 hours
Preparation for exam 74 hours
Expected literature

Seal, W., Rohde, C., Garrison, R.H. & Noreen, E.W. Management Accounting, 2018 McGraw-Hill, 6th ed.

Articles related to the syllabus.
Last updated on 31-03-2023