Strategic management accounting – teaching plan 2020

Strategic management accounting(SMA) – teaching plan 2020

Session	Topics	Reading
1.    Feb. 7 (Friday) 19-22:00	Introduction to strategic management accounting Subject scope (re: module guide 2020)	D1: Chapters 1 and 2 D2: Chapters 1 and 22 Slides: an introduction to management accounting. Slides: strategic management accounting. Slides: types of costs. Slides: cost behavior analysis. Slides: on costing. Video: the role of management accounting. Video: direct and indirect costs. Video: cost behavior. Video: types of manufacturing costs. Video: cost objects. Video: cost drivers. Video: product vs period costs. Video: prime costs and conversion costs. Video: Porter's generic strategies. Video: strategic management accounting (ACCA). e-reading: strategic management accounting - definition and techniques. e-reading: limitations of management accounting. e-reading: expanding relevance of management accounting. FB group - videos on SMA.
2.    Feb. 15 (Sat) 14-18:30	Strategic cost management and performance management Relevant and irrelevant cost and revenues for decision making	D1: Chapters 14 and 15 D2: Chapter 22 D1: Chapter 4 D2: Chapter 9 Slides: strategic cost management. Slides: value chain analysis. Slides: relevant cost analysis. Slides: sunk cost. Slides: CVP analysis. Video: Porter's Value Chain. Video: contribution margin. Video: CVP analysis - on breakeven point. Video: margin of safety. Video: operating leverage. Video: on relevant costs. Video: opportunity and sunk cost. Video: relevant decision - the special order case. Video: relevant decision - make or buy decision. Video: relevant decision - drop a product line. Video: relevant decision - product mix with resource constraint. e-reading: differential, opportunity and sunk costs. e-reading: examples of sunk costs. e-reading: examples of opportunity cost. e-reading: relevant and irrelevant costs - an exercise. e-reading: strategic cost management (a paper pdf). e-reading: Value Chain Analysis Technique. e-reading: contribution margin. e-reading: CVP analysis: breakeven point. e-reading: CVP analysis - margin of safety. e-reading: CVP analysis - breakeven point and margin of safety. e-reading: degree of operating leverage. FB page - literature on costing for short-term decisions.
3.    Feb. 21 (Fri) 19-22:00	Activity based costing and traditional methods	D1: Chapters 7 and 8 D2: Chapter 11 Slides: overhead allocation. Slides: activity based costing. Slides: ABC systems. Slides: ABC cost hierarchy. Slides: activity-based management. Video: cost drivers. Video: on overhead allocation. Video: income statements using absorption and variable costing. Video: on ABC (the concept). Video: activity measures for ABC. Video: ABC cost hierarchy. Video: An example of ABC. Video: advantages and problems with ABC. Video: activity-based management. e-reading: cost drivers. e-reading: describe and identify cost drivers. e-reading: how to calculate overhead allocation. e-reading: the major limitations of traditional factory overhead allocation. e-reading: the underlying view of ABC: 4 points. e-reading: cost hierarchy in costing. e-reading: ABC and product costing. e-reading: disadvantages and advantages of ABC. FB page - literature on ABC. FB page on variable and absorption costing. FB page on overhead accounting.
4.    Feb. 28 (Fri) 19-22:00	Pricing decisions	D1: Chapter 5 D2: Chapter 10 Slides: costing and pricing strategies. Video: pricing objectives and strategy. Video: value, price and cost strategy framework. Video: on cost-based pricing. Video: Pricing decisions (ACCA). Video: pricing decision in management accounting. Video: target costing. Video: marginal cost pricing. Video: penetration pricing. Video: price skimming strategy. Video: high-low pricing. Video: markup vs margin - an explanation. Video: predatory pricing. Video: dynamic pricing. Video: value-based pricing. Video: consumer surplus (economics). Video: lifecycle costing. e-reading: how to calculate margin and markup. e-reading: pricing strategies. e-reading: advantages and disadvantages of marginal cost-plus pricing. e-reading: full cost plus pricing. e-reading: penetration pricing. FB page on target costing.
5.    Mar. 6 (Fri) 19:22:00	Budgeting	D1: Chapter 9 D2: Chapter 15 Slides: budgeting. Slides: on flexible budgeting. Slides: budgeting and variance analysis. Video: purposes of budgeting. Video: forecasting vs planning. Video: types of budgets. Video: master budget process. Video: sales budget. Video: direct materials budget. Video: overhead budget. Video: relevant cash flows of capital budgeting. Video: static and flexible budgets. Video: Budget variance analysis. Video: zero-based budgeting. Video: budgetary slack. Video: rolling budget. Video: activity-based budgeting. Video: limitations of budgeting. Video: disadvantages of flexible budgeting. e-reading: budgeting objectives and factors. e-reading: four types of budgeting methods. e-reading: rolling budget. e-reading: zero-based budgeting. e-reading: flexible budgeting. e-reading: management by exception. e-reading: selling price variance. e-reading: sales volume variance. e-reading : flexible budgeting - an exercise. FB page - literature on budgeting.
6.    Mar. 13 (Fri) 19-22:00	Management control system, costs of responsibility and divisional financial performance measures: I	D: Chapters 10 and 12 D2: Chapters 16 and 19 Slides: divisional performance measures. Slides: responsibility accounting. Video: divisional performance measurement (an introduction). Video: control systems. Video: management control systems.  Video: management control systems. Video: decentralization of organization. Video: on ROI and residual income (RI). Video: ROI and residual income (RI): a quick briefing). Video: performance evaluation and responsibility centres. Video: goal congruence. e-reading: management control systems - definition and characteristics. FB page on responsibility accounting.
7.    Mar. 14 (Sat) 14-18:30	Management control system, costs of responsibility and divisional financial performance measures: II Transfer pricing	D1: Chapters 10 and 12 D2: Chapters 16 and 19 D2: Chapter 20 D1: Chapter 13 Slides: management control system. Slides: balanced scorecard. Slides: transfer pricing. Video: what is a transfer price? Video: transfer pricing: briefing. Video: transfer pricing part 1. Video: transfer pricing part 2. Video: cost based transfer pricing. Video: market based transfer pricing. Video: negotiated transfer pricing. Video: full cost transfer pricing. Video: transfer pricing and tax havens. Video on strategic business unit. Video on Porter's generic strategies. Video: non-financial performance measures. Video: introduction to the balanced scorecard. Video: on balanced scorecard. Video on Kaplan talking about balanced scorecard. Video: the financial perspective of balanced scorecard. Video: the customer perspective of balanced scorecard. Video: the internal process perspective of balanced scorecard. Video: the learning and growth perspective of balanced scorecard. Video: scoring the balanced scorecard. Video: strategic performance measurement. Video: strategy mapping. e-reading: what is a balanced scorecard. e-reading: transfer pricing (ACCA). FB page - literature on transfer pricing. FB page on balanced scorecard.
8.    Mar. 20 (Fri) 19-22:00	Standard costing and variance analysis	D1: Chapter 11 D2: Chapters and 18 Slides: standard costing. Video: standard costing. Video: standard costing overview. Video: classification of variances. Video: direct materials variance analysis. Video: direct labour variance analysis. Video on materials quantity variance. On labour efficiency variance. On labour rate variance. On variable overhead efficiency variance. On variable overhead spending variance. On fixed overhead spending variance. On journal entries related to standard costing. Video: advantages of standard costing. Video: disadvantages of standard costing. On lean accounting - a briefing. e-reading: standard costing - definition and needs. e-reading: major types of variance. e-reading: normal costing. e-exercises: On labour and variable ovehead variances. On materials and labour variances. FB page - literature on standard costing.
9.    Mar. 21 (Sat) 14-20:00	Working capital management	Boopathi et al.(2016) BD: Chapter 26 P. Atrill and E. McLaney: Chapter 11 (Canvas module resources) Slides: working capital management. Video: what is working capital (a briefing). Video: an introduction to working capital management (CIMA). Video: short-term finance and cash investment (cima). Video: an introduction to working capital management (ACCA). Video: net working capital (an introduction). Video: operating and cash cycle. Video: cash conversion cycle. Video: on receivable and payable days. Video: days in inventory [video on inventory turnover]. Video: estimation of working capital (an example). Video: working capital management analysis : a case study. Video: economic order quantity - an explanation. Video: an example on calculation of economic order quantity. Video on economic order quantity (a more detailed explanation). Video: invoice discounting and factoring (ACCA). Video: cost of financing receivables. e-reading: working capital management (ACCA). e-reading on operating and cash operating cycle. e-reading: a look at the cash conversion cycle. e-reading: invoice discounting and factoring (ACCA) [pdf]. FB page on literature on working capital management.
10.Mar. 27 (Fri)       19-22:00	Revision Examination Preparation	Part A Relevant cost (note)/ (slides). Sunk cost and opportunity costs (note)/ (slides). Part B ABC cost hierarchy (slides) Benefits of ABC (note). An introduction to ABC (slides). Part C What is strategic management accounting (note). Porter's generic strategies (slides)/ (e-reading). What is a balanced scorecard (note)/ (slides). What is a strategy map (note)/ (slides). Will review the article [pdf] on strategic management accounting : "On the emergence of strategic management accounting: an institutional perspective" [posted on FB strategic management accounting group dated March 22, 2020.] Part D Purposes of budgeting (note)./ (slides). Zero-based budgeting (note). Flexible budget (note)/ (slides). Rolling budget (note).

Readings

Drury, C. 2019. Management Accounting for Business, 7^th edition, Cengage. [D1]

Drury, C. 2019. Management and Cost Accounting, 8^th edition, Cengage. [D2]

Berk, J. and Demarzo, P. 2014. Corporate Finance, 3^rd edition, Pearson: Chapter 26: Working Capital Management.

Boopathi, C., Tamilachi, P., Lesson, P.J. and Tamilnadu, P. 2016. “Concept of working capital management” International Journal of Commerce, Business and Management 5(2) Mar-Apr: 2319-2828.

e-Resources
FB group on strategic management accounting e-resources
FB group on strategic management accounting videos