ACCT 4251
Advanced Management Accounting

3.0 Credits

Description

Building on ACCT 3251: Intermediate Management Accounting, students explore the integrative and interdisciplinary role of management accounting and its contribution to the strategic management process. Students discuss the provision of quantitative and non-quantitative information for planning, control, and decision making. Topics include costing systems; allocating costs and revenues including support service costs, fixed costs, joint product costs, bundled product revenues, and customer profitability; management information systems; the importance of budgeting; the importance of variance analysis; capital budgeting and investment decision making; quality issues and supply chain strategies; transfer pricing; performance measurement; compensation issues; and strategic processes and balanced scorecards.

Delivery Method

Web-based.

Prerequisites

Recommended: ACCT 3251: Intermediate Management Accounting

Objectives

On successful completion of the course, students will be able to:

  • Apply management accounting concepts in a case-based, collaborative setting, communicating the results effectively both orally and in writing.
  • Locate the role of management control systems (MCS) in both strategy and operations.
  • Describe results control and its applications.
  • Distinguish indirect controls from the direct controls, based on action and personnel/culture.
  • Determine whether an entity or an area is better suited to tight or loose controls, and the types of action and/or personnel/cultural controls that ensure the desired level of tightness.
  • Design and evaluate management controls in terms of methods applied and tightness, and the indirect costs of a poor MCS design and/or implementation.
  • Select the best type of financial responsibility-centre, based on desired levels of control, and identify behavioural impacts of different transfer pricing schemes.
  • Prepare and interpret budgets, and identify their limitations.
  • Design and evaluate various types of incentive systems.
  • Evaluate financial performance market and accounting measures in terms of seven criteria to determine optimal performance metrics.
  • Critically analyze corporate governance structures of various companies and common management-control related ethical issues.
  • Assess the ways that performance evaluators can reduce, and perhaps eliminate, the distorting effects of uncontrollable factors on measuring performance.
  • Analyze and apply six financial results control remedies to alleviate myopic behaviour.

Course Outline

Introduction to Case-Based Collaboration

  • Module 1: Introduction to Case-Based Collaboration

Control function

  • Module 2: Introduction to Management Control Systems (MCS)

Control Alternatives and Effects

  • Module 3: Control Alternatives and Effects--Results Controls
  • Module 4: Action and Personnel/Cultural Controls
  • Module 5: Control System Tightness
  • Module 6: Control System Design, Evaluation, and Indirect Costs

Financial Results Control Systems

  • Module 7: Financial Responsibility Centres and Transfer Pricing
  • Module 8: Planning and Budgeting (Performance Definition and Measurement)
  • Module 9: Incentive Systems (Performance Rewards)

Performance Measurement and Issues

  • Module 10: Financial Performance Measures
  • Module 11: Corporate Governance and Ethics
  • Module 12: Controls and Risk
  • Module 13: The Myopia Problem

Maximum Completion

30 weeks.

Required Text and Materials

Merchant, K. A, Wim A. Van der Stede. Management Control Systems: Performance Measurement, Evaluation and Incentives. 3rd ed. Pearson Education Canada, 2012.
Type: Textbook, ISBN: 978-0273737612

Open Learning Faculty Member Information

An Open Learning Faculty Member is available to assist students. Primary communication is through the Learning Environment's "Mail" tool or by phone. Students will receive the necessary contact information when starting the course.

Assessment

To successfully complete the course, students must achieve at least 50% on the mandatory final exam and in the overall course.

Case Assignment 1 6%
Case Assignment 2 12%
Case Assignment 3 12%
Case Assignment 4 12%
Case Writing Assignment 28%
Final Exam* 30%
Total 100%

* Mandatory