Università degli Studi di Perugia

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Unit ACTIVITY-BASED MANAGEMENT ACCOUNTING

Course
Business administration
Study-unit Code
20A00090
Location
PERUGIA
Curriculum
Accounting strategy and control
Teacher
Fabio Santini
Teachers
  • Fabio Santini - Didattica Ufficiale
Hours
  • 42 ore - Didattica Ufficiale - Fabio Santini
CFU
6
Course Regulation
Coorte 2018
Offered
2019/20
Learning activities
Caratterizzante
Area
Aziendale
Sector
SECS-P/07
Type of study-unit
Obbligatorio (Required)
Type of learning activities
Attività formativa monodisciplinare
Language of instruction
English
Contents
The course program covers the following topics: Activity-based costing, Activity based-management, Balanced Scorecard, Information selection for decision making
Reference texts
Robert Kaplan, Anthony A Atkinson ,Advanced Management Accounting: Pearson New International Edition, 3/E, 2013
Educational objectives
The purpose of the course is to provide students with the basic knowledge and application of management accounting and control.
In particular, the students will acquire knowledge on:
a) identification and mapping of business activities;
b) the construction of a cost analysis system based on activities;
c) the construction of the main strategic cost management tools (target costing, capacity costing, quality costing);
d) the use and implementation of the balanced scorecard.The main pratical competences will concern:
a) building process maps and activities;
b) Identifying and managing critical issues to be eliminated;
c) the design of a management accounting system for analyzing such activities understanding the needs in terms of information infrastructures;
d) the identification of goals, indicators and targets in relation to different integrated business perspectives.As regards the independence of judgment, the students at the end of the course will be able to:
a) independently assess the adequacy of the planning and control system in use;
b) propose useful solutions for its improvement;
c) assess the adequacy of the solutions provided.Finally, with regard to communication skills, students will be able to:
a) use the technical terms of the discipline.
Prerequisites
In order to address the teaching of management accounting, students should possess:
a) basic knowledge of mathematics (quadratic equations);
b) adequate knowledge of financial accounting and financial statement issues;
c) adequate knowledge of traditional management accounting tools/techniques.
Teaching methods
a) Lectures, to transmit knowledge about the different topics of the program;
b) pratical exercises, to apply knowledge for the solution of real problems;
c) discussion of case studies, to develop judgment skills;
d) work groups, to develop team-working and communication skills;
e) students meetings, to discussion and dialogue on complex issues;
f) seminars by professional controllers,  to reveal the pratical relevance of the discipline.
Learning verification modality
The examination consists of a written exam, which lasts two hours, composed of two case studies and one theoretical question.Every exercise is evaluated as decimal (0-10) and weighted on the basis of its complexity. The three scores are finally summed to obtain the final grade (0-30).The first case (50 minutes) is the most complex (12 points on 30).

To the second case (40 minutes) are attributed 8 points on 30.

The theoretical question (30 minutes) can cover any topic in the program (10 points on 30).To access the oral examination is necessary, at the same time: i) to have achieved an overall score of at least 18/30 and ii) have obtained the sufficiency in at least two exercises on the three assigned.
Those who achieve a grade-sufficient in each of the three exercises can proceed to direct recording of the vote.Students who participate the working groups proposed by the teacher during the course, are entitled to two additional points.

The decision to limit the examination to the written test (in case of sufficiency in the three exercises) lies in the fact that the presence of two practical cases and one theoretical question allows, simultaneously, to verify the acquisition of basic knowledge and to test its concrete application.
Extended program
1. Resources and Activities. Costs of Resource Supply and Resource Usage.

 2. Decision Making. Choosing an Optimal Product Mix. Short Term Budgeting.

 
 3. Activity-Based Costing. Assigning Resource Costs To Activities. Activity Cost Drivers: Selection and Use. Cost Hierarchy (Unit, Batch, Product, and Customer-Sustaining).

 4. Decision-Making about Products. Measuring Product Profitability. Pricing. Other Product-Related Decisions: Substitution, Customers.

 5. Cost-Based Decision Making. Activity Management and Process Improvement. Kaizen. Life Cycle Costing. Target Costing.

 6. Balanced Scorecard: Measuring Total Business Unit Performance.

 7. Financial Measures of Performance. Profit Centers/Transfer Pricing. Variance Analysis. Productivity Measures.

8. Financial Measures of Performance: Investments and EVA.

9. Measuring Performance from Customer and Internal Business Process Perspective. Total Quality and Continuous Improvement. Cost of Quality. Cycle Time Management.
10. Investing to Develop Future Capabilities. Investments in Technology Linked to Customer Satisfaction, Process Improvements, Internal Capabilities, Reengineering.

11. Incentive and Compensation Systems. Incorporate New Material On Incentive Systems. Summarize Agency Material. Summarize Emerging Material On Compensation and Nonfinancial Performance.
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