This class exists in these courses :
• IÉSEG > IESEG Degree - Programme Grande École > Semester 1 > 2,00 ECTS
• IÉSEG > IESEG Degree - Programme Grande École > Semester 2 > 2,00 ECTS

Prerequisites

Undergraduate managerial accounting course; capital investment / budgeting (NPV) methods

Learning outcomes

Managerial accounting [/finance] is all about providing objective, analytic support for many levels of organizational decisions. Management courses focus on the more subjective organization and human factor issues; managerial accounting targets specific decision areas amenable to objective, quantifiable analyses. Key to the process is identification of decision alternatives, relevant information, and suitable analytic decision techniques. Profit-maximizing firm decisions are the result.

Just as CEO’s and firm managers can no longer responsibly “leave financial accounting to the accountants,” managers interested in better decisions (from routine cost control issues, to vital strategic areas such as market analyses, product development, pricing, outsourcing, acquisitions, and capital spending), will improve their decision effectiveness with knowledge of such analytic managerial tools, techniques, and systems.

Course description

Building on foundation managerial accounting methods, and designed for the hands-on decision-maker, several popular, practically-based management accounting areas are presented, actively demonstrated, and inter-actively discussed. Each area culminates with case analyses, designed to explore each method’s business relevancy, applicability, and practical usage. Topics and depth of study vary by class composition. The following issues, decision techniques, and theories will be among those examined:

? Why Management Accounting? Its role… its value… who does it… what it does? Whatever happened to simple cost accounting?
? Is It, All About Cash? Human Resources, Capital Resources ~ Manage people with financial reporting standards // Manage Capital (strategic, long-term decisions) with all eyes toward Cash! (Why the differences?)
? How’d We Do? Budgeting a step ahead. Using traditional cost variance work on the Sales and Margin sides ~ How they help, when they work.
? Coming Up Short… When decisions optimize profits at below “cost” pricing – the battle of fixed cost absorption issues. Includes multi-product, probabilistic, break-even modelling, variable costing issues.
? Is That All There Is? Some management accountants, inspired by Goldratt’s ‘bottleneck solutions’ favour dropping cost accounting. Why? Activity-Based Hogwash? ~ Disappointments, resolutions; Goldratt’s Theory of Constraints.
? Let’s Talk: Cultural differences, social responsibilities, ethics & strategic financial accounting issues.

Class type

Class structure

Teaching methods

• Presentation
• Project work
• Research

Assessment

Daily Short Exams (four) – 36%
Group Case Report (15%); Presentation (27%) – 42%
Individual Assignments – 12%
Participation – 10%

Recommended reading

• Is Theory of Constraints For You -

• Business Valuation Made Simple -