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Regular version of the site

Management Accounting

2019/2020
Academic Year
ENG
Instruction in English
6
ECTS credits
Course type:
Elective course
When:
2 year, 1, 2 module

Instructor


Kuzin, Dmitry A.

Course Syllabus

Abstract

Thiscourse covers the main areas required to gain a firm foundation in the subject. The course focuses on the essential managerial accounting concepts which have being used within organizations for decision-making purposes and being the parts of current research interests. It provides a broad introduction to the nature and purpose of management accounting. This course also concerns with identifying cost information and using it to make short-term and medium-term decisions, and introduces students to costing methods.
Learning Objectives

Learning Objectives

  • The aim of the course «Managerial Accounting: Marketing Emphasis» is teaching stu-dents the integrative role of the management accounting system in making decisions in the field of marketing and mastering a set of methods that allow planning and controlling of mar-keting activities in accordance with international standards.
  • know: - Theoretical foundations of management and marketing, the conceptual apparatus of accounting, the principles of functioning of commercial companies at the macro and micro- levels; - basic marketing technologies
  • be able to: - apply optimization mathematical models for solving applied problems; - analyze the organizational structure of the company management
  • have skills in: - special economic and management terminology and vocabulary in English; - computerized methods of collecting, stroing and processing information
Expected Learning Outcomes

Expected Learning Outcomes

  • Can use the concepts of managerial accounting. Understand goals and tasks of accounting. Distinguish between direct and inderect costs
  • Can analyses factors of company incomes. Can perform profit analysis of the company. Can calculate profit concerning income taxes
  • Can create a costing system. Understand the difference of company’s costs. Can use appro-priate costing system for particular company
  • Can analyze and distinguish differences between stages of operational budget. Understands all stages of flexible budget. Can conduct budgeting
  • Understand the differences between a static and flexible budget. Can use flexible budget for different operational (business) purposes. Can use different methods of analyzing budget price
  • Can use different market information for operational and business decision. Can take decision about producing, product range solution considering internal and external environments
  • Can calculate the minimum allowable price of particular order. Can use different pricing methods in operation activity. Can determine the optimal price for achievement maximum sales when launching product
  • Understand cost management methods. Can implement different methods for creation the opti-mal business strategy. Can develop a system of financial and non-financial indicators for moni-toring and improvement strategy implementation
  • Understand the differences between plant-wide rates and individual rates of department. Can implement the most effective cost system considering the peculiarities of company.
  • Can consider factors of quality, time and technologies in managerial accounting. Can ana-lyze financial and non-financial indicators of product or service quality.
  • Can calculate transfer price using appropriate method. Understand the method of calculation transfer price considering market price. Can implement the optimal transfer price in opera-tion activity of particular company
Course Contents

Course Contents

  • The relationship between costs, volume and profit.
    Income and cost factos. Prerequisites for strategic profit analysis. Break even. Financial planning in the face of uncertainty. Impact of assortment changes on income. Role of income taxes. Coverage and gross margin
  • Functional cost anaylsis in marketing
    The use of functional cost analysis to improve cost management and improve the profitabil-ity of the organization. Classification of costs in operational costing systems. An example of creating a costing system. Solutions to reduce costs in the organization using cost management by type of activity. Comparison of costing for operations and costing system by department. The use of costing systems and cost management by type of activity in marketing
  • Master-budget and accountability.
    Stages of the operational budget. Stages of creating a flexible budget. Direct Cost Deviation Analysis. Deviations of efficiency for categories of direct costs. Budgeting by activity
  • Flexible budgets, budget deviation analysis and management control
    The difference between a static budget and a flexible budget. Using a flexible budget to calculate sales variances, price deviations, and efficiency. Methods for analyzing budget prices and the number of direct investments. Continuous improvement of the effectiveness of the organization as a result of the analysis of deviations
  • Significant income and costs, support for management decisions
    Information and decision process. External supply and make or buy solutions. Product range solutions with power limitations. Customer profitability, activity-based costing and significant costs. Non-materiality of past costs and the decision to replace equipment
  • Pricing and cost management
    Calculation of the minimum allowable price of a single order. Target pricing and cost management. Pricing methods focused on costs and desired return on investment. Demand-oriented pricing methods. Method for determining the optimal price to achieve maximum sales when launching goods to the market. Price discrimination, peak pricing
  • Balanced Scorecard, Factor Analysis of Profit
    The choice of the optimal strategy of the company based on the analysis of the company. Cost management methods. Development of a system of financial and non-financial indicators to monitor the implementa-tion of the strategy. Analysis of changes in operating income to assess the success of the chosen strategy
  • Distribution of costs, assessment of customer profitability, analysis of revenue deviations
    The stages of tracking and allocating costs for costing production in the value chain..Plant-wide rates compared to individual rates of departments (divisions). Cost sharing from one department to another. Distribution of corporate expenses. Cost allocation for related products and by-products. Distribution of revenue from sales of related products. Cost allocation in the performance of government orders. Customer Costs. Customer ranking by operating income. Management of high and low cost customers
  • Accounting for the influence of factors of quality, time and theory of limitations
    Quality as a tool for achieving competitive advantage. Financial aspect: assessment of the cost of quality. Consumer aspect: non-financial indicators of customer satisfaction with the quality of prod-ucts and services. Determination of significant costs and revenues in the implementation of quality programs. The aspect of training and staff development in improving quality. Time as a tool for achieving competitive advantage. Time factors and time value. Technological cycle time, significant revenue and costs. Steps for managing bottlenecks. Eliminate downtime
  • Transfer pricing in international trade
    Methods for calculating transfer prices between divisions. Transfer prices based on market price. Transfer prices calculated on the basis of the full or partial cost of the product. Contractual transfer prices. The principle of choosing the optimal transfer price.
  • The role of managerial accounting in a company. The basic definitions in international managerial accounting
    Main objectives of the accounting system. Basic definitions. Unused power and a downward spiral in demand.The concept of the object of accounting. Direct and indirect costs. Cost factors, variable costs, and fixed costs.Features of management accounting in service, trade and production companies. Various ways of calculating the cost of production corresponding to different goals
Assessment Elements

Assessment Elements

  • non-blocking home assignment
  • non-blocking class participation
  • non-blocking exam
Interim Assessment

Interim Assessment

  • Interim assessment (2 module)
    0.35 * class participation + 0.3 * exam + 0.35 * home assignment
Bibliography

Bibliography

Recommended Core Bibliography

  • Lee, John. Advances in Management Accounting./ John Lee, Mark Ep-stein; DB ebrary. - Emerald Insight, 2013. – (Volume 22: Advances in Management Accounting)/ - Print ISBN 9781781908426.
  • McCrary, Stuart A.. Mastering Corporate Finance Essentials : The Critical Quantitative Methods and Tools in Finance, John Wiley & Sons, Incorporated, 2010. ProQuest Ebook Central

Recommended Additional Bibliography

  • Seleshi, Sisaye. An organizational learning approach to process innovations: The Extent and Scope of Diffusion and Adoption in Management Accounting Systems [Электронный ресурс] / Sisaye Sekeshi, Jacob J.Bimberg; DB ebrary. - Emerald Insight, 2012. - 171p. – (Studies in Managerial and Financial Accounting, Volume 24). - Print ISBN 97817805273446. - Режим доступа: http://site.ebrary.com/lib/hselibrary/detail.action?docID=10559559&p00=managerial+accounting. – Загл. с экрана.