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.
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
- 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
- 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.
Introduction to Case-Based Collaboration
- Module 1: Introduction to Case-Based Collaboration
- 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
Required text and materials
Merchant, K. A, Wim A. Van der Stede, (2017). Management Control Systems: Performance
Measurement, Evaluation and Incentives. 4th ed. Pearson Education Canada.
To successfully complete this course, students must achieve a passing grade of 50% or higher on
the overall course, and 50% or higher on the final mandatory exam.
|Case Assignment 1: Leo’s Four-Plex Theater
|Case Assignment 2: Axeon N.V.
|Case Assignment 3: Zumwald AG
|Case Assignment 4: Entropic Communications Inc.
|Case Writing Assignment
Open Learning Faculty Member
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.