Strategic management accounting tutorial teaching plan 2014 Sept.

Introductory Session:  Management and cost accounting fundamentals Regaining lost relevance,



Aim

Before addressing the more advanced topics in strategic management accounting you need to revise the fundamentals covered on an earlier accounting module.
You should be familiar with the general content of these chapters from your earlier studies and just need to be reminded / updated. 



Reading

Chapters 1, 2 and 10 in the recommended text and articles.

Dekker, H  (2003) Value chain analysis in inter-firm relationships – a field
study”. Management Accounting Research, Vol.14, p.1-23)




Self assessment

Complete the multiple choice questions for chapter 1, 2 and chapter 10.   

Consider the end-of-chapter review questions for chapters 1, 2 and 10.




Activities

and

Questions

Attempt end-of-chapter exercises:

1.12   Purposes of accounting systems (Solution in Appendix A)

1.14   Value chain and classification of costs for Boots the Chemist

2.16   Cost drivers and the value chain in Toyota

10.17 Relevant Costing












Session 1:  Strategic Management and Accounting Information



Aim


Identify key aspects of strategic management accounting and performance measurement




Reading

You should skim read chapter 22 in the recommended text and assigned articles.

Guilding, C., Cravens, K. S. and Tayles, M., (2000), 'An international comparison of strategic management accounting practices', Management Accounting Research, 11, no.1: 113-135

Roslender, R. and Hart, S.J. (2003). In search of strategic management accounting: Theoretical and field study perspectives. Management Accounting Research. 14, 255-279.
















Questions
From the Seminar Questions File

S 1. Management Accounting in a Bank

S 3.  Four years ago a computer system







Session 2:  ABC/M,  Customer Profitability and Target Costing



Aim


1.    To consider how activity-based costing can help management understand the key cost drivers

2.    To consider pricing and cost-related prioritisation of organisational activities.




Reading

Chapters 11 and 12 in the recommended text and assigned articles.

Everaert, P. (2006). Characteristics of target costing: theoretical and field study perspectives. Qualitative Research in Accounting and Management. 3:3, 236-263.
Dunk, A S. Product life cycle costs analysis: the impact of customer profiling, competitive advantage, and quality of IS information.  Management Accounting Research. 15 (2004) 401-414. 




Self assessment

Complete the multiple choice questions for chapters 11 and chapter 12.

Consider the end-of-chapter review questions for chapters 11 and 12




Activities

and

Questions

Attempt end-of-chapter exercises:

11.11 and 11.12      ABC, activity area and cost driver rates (Solution in Appendix A)

11.13  ABC and product cross-subsidisation

12.21  Customer profitability, distribution







Session 3:  Accounting for Quality and JIT



Aim

1.    Explain the cost categories in a cost of quality programme

2.    Identify the costs and benefits of quality improvements




Reading

Chapter 20 and 21 in the recommended text and assigned articles.

Srdoc, A., Sluga, A. and Bratko, I., (2005), 'A quality management model based on the deep quality concept', The International Journal of Quality & Reliability Management, 22, no.2/3: 278-302




Self assessment

Complete the multiple choice questions for chapters 20 and 21. .

Consider the end-of-chapter review questions for chapters 20 and 21.




Activities

And

Questions


Attempt end-of-chapter exercises:

20.16 Cost of quality analysis

Q. 20.20 Lappalainen - Throughput, quality and relevant costs

21.16  Choosing supplier for JIT

21.21 Just in Time systems and Ethics







Session 4:  Accounting for Control, Strategic Planning and Control



Aim


To understand the purposes and roles of budgeting. Focus on the key concepts rather than the detailed compilation of budgets.




Reading

You should read chapter 14 in the recommended text and assigned articles.
Otley, D. (2001). "Extending the boundaries of management accounting research: developing systems for performance management." British Accounting Review 33 p243- 261




Self assessment

Complete the multiple choice questions for chapter 14.

Consider the end-of-chapter review questions for chapters 14




Activities

and

Questions


Attempt end-of-chapter exercises:

14.16 Budgetary slack and ethics

14.19 Responsibility of purchasing agent

14.18 Budgeted Profit and Loss Account










Session 5:  Divisional control and performance measurement



Aim


To understand the important elements of effective management control systems




Reading

You should read chapters 18 and chapter 19 in the recommended text and assigned articles.

O’Hanlan, J and Peasnell, K., (1998) “Wall Street’s contribution to management accounting: the Stern Stewart EVA financial management system.  Management Accounting Research, Vol. 9 421-444.   
You need not deal in detail with the mathematical and quantitative aspects of this paper.




Self assessment

Complete the multiple choice questions for chapter 18 and chapter 19.

Consider the end-of-chapter review questions for chapters 18 and 19




Activities

and

Questions


Attempt end-of-chapter exercises:

18.12 Decentralisation, goal congruence and responsibility centres

19.11 ROI and residual profit

19.13 Residual income and economic value added (Solution in Appendix A)




Questions

From the Seminar Questions File

F 1.  Financial Performance







Session 6:  Strategy Implementation – The Balanced Scorecard



Aim

Assess the relevance of scorecard approaches in strategic management and performance measurement.




Reading

You should read Chapter 22 in the recommended text and assigned articles.

Norreklit, H., (2000) “The balance on the balanced scorecard- a critical analysis of some of its assumptions”, Management Accounting Research, Vol.11, pp.65-88.

Tayles, M., Adshed, N., Bramley, A, and Farr, J., (2002) Dealing with the management of intellectual capital: the potential role of strategic management accounting. Accounting, Auditing and Accountability Journal,  Vol 15 2, 251-267.




Self assessment

Complete the multiple choice questions for chapter 22. 

Consider the end-of-chapter review questions for chapter 22




Activities


Attempt end-of-chapter exercises:

22.11  Strategy and balanced scorecard (Solution in Appendix A)

22.15  Balanced scorecard




Questions

From the Seminar Questions File

Q 5. Ochilpark


Assignment info.
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