AMA teaching plan Sept. 2016


 AMA 2016

Introductory Session – Lecture 1:  Relevant costs and Decision making. Management and Cost accounting fundamentals



Aim

Before addressing the more advanced topics in advanced 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

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
1.16   Scorekeeping, attention directing and problem solving.

2.15   Classification of costs

2.16   Cost drivers and the value chain in Toyota

10.14 Contribution approach – relevant costs

10.17 Relevant Costing












Session Lecture 2:  Management Accounting and its changing context - Strategic Management and Accounting



Aim


Identify key aspects of the environment affecting management accounting and introduce strategic management accounting.




Reading

You should 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

Langfield-Smith, K., Strategic management accounting: how far have we come in 25 years?, Accounting, Auditing & Accountability Journal, 21 (2): 204 – 228.




Self assessment

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




Activities 

and

Questions
Attempt end-of-chapter exercises:

22.17  Mayfair Ltd – subsidy for Cafeteria

From the Seminar Questions File

S 1. Management Accounting in a Bank

G 4.  Holiday Profitability







Session Lecture 3:  SMA Techniques - 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.

Drury, C. and Tayles, M. (2006) Profitability Analysis in UK Companies: An Exploratory Study, British Accounting Review, Vol.38, No 4 405-425.




Self assessment

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

12.15  Product Costs and ABC

12.18  Target costs and ABC








Session Lecture 4:  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 and JIT




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

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

20.17  Quality improvement – relevant costs and revenues

20.20 Lappalainen - Throughput, quality and relevant costs

21.16  Choosing supplier for JIT

21.21 Just in Time systems and Ethics







Session - Lecture 5:  Management Control Systems and Financial Performance Measurement.



Aim


To understand the purposes, roles and contents of budgeting and responsibility accounting. To compute and be familiar with financial performance measures at the divisional level, such as ROI, RI and EVA.




Reading

You should read chapters 14 (briefly), the first 4 pages of Chapter 18 and all of Chapter 19 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

Consider the end-of-chapter review questions for chapters 14
and 19



Activities

and

Questions


Attempt end-of-chapter exercises:

14.19 Responsibility of purchasing agent

14.18 Budgeted profit and loss account

19.11 ROI and residual profit

19.13 Residual income and economic value added (Solution in Appendix A)
19.18 Relevant costs, performance, goal congruence




Questions

From the Seminar Questions File

F 1.  Financial Performance





Session Lecture 6:  Financial Control Systems - Transfer Pricing



Aim


To understand the important effects of transfer pricing within management control systems




Reading

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

Woods, M., Taylor, L. and Fang, G., 2012. Electronics: A case study of economic value added in target costing.  Management Accounting Research, Vol 23 pp261-277. 





Self assessment

Consider the end-of-chapter review questions for chapter 18




Activities

and

Questions


Attempt end-of-chapter exercises:

18.17 Effect of alternative transfer pricing methods

18.21 Transfer Pricing Issues














Session Lecture 7:  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.
Ma, Y and Tayles, M. “On the Emergence of Strategic Management Accounting: an Institutional Perspective”, Accounting and Business Research, Vol. 39. 5 (2009) 473-49



Self assessment

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



Assessment info.:

Individual Assignment: 2500 words (50%) This will be a project related to Advanced Management Accounting.  Specifically: Costing Systems, Profitability Analysis and Strategic Appraisal.  Further details are on the module website in a separate document. Details

Due date : 21 October 2016 Group B; 28 October 2016 Groups A and C. 

Examination: 2 hours (50%) Questions will deal with numerical work illustrating techniques of management accounting with the questions also including interpretation or testing concepts and  applications.  A choice of questions will be offered.  The best preparation for the examination is to follow the course and readings indicated and to undertake all of the questions set for tutorials and for practice.

Examination date 5 December 2016. 

AMA textbook



Internet resource (local): Literature on management accounting

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