Management Accounting

(BAB 01)

Course name: Management Accounting

Course code: BAB 01
Course load: 6 ECTS
Term: 2nd trimester
Coordinator: Drs. I. de Vries
Consulting hour: Thursday 15.00 – 17.00 hrs, room F4-19
Teaching staff: Drs. I. de Vries, Drs. M.B. van den Berg, Dr. M. Cools,
Dr. A.N.A.M. Boons RA
Educational form: Lectures and tutorials
Examination: Written exam, open as well as multiple choice questions
Literature: - Ronald W. Hilton (2005, 6th edition): Managerial Accounting:
Creating Value in a Dynamic Business Environment, Mc Graw-
Hill (ISBN: 007-111313-4).
- Additional article(s) on Blackboard.

Goal(s) of the course

Management accounting focuses on the internal decision-making processes within the organ-
isation and the management information needed to do so effectively. Primarily, this is the role
of the controller as a member of the management team. However, management accounting in-
formation is valuable to mostly anyone within the organisation. Shortly, the controller’s role is
to guard the economic vitality of the organisation. He or she must be able to translate desires,
goals and intentions on the one hand, and results and performances on the other hand, into
the financial dimensions expressing the objectives of the organisation. Although the course
mainly focuses on the quantitative aspects within the field of management accounting, more
behavioural aspects within the field of management accounting are touched upon as well.

Organization
During the lectures the learning objectives are approached conceptually. The important mat-
ters of each subject are explained and illustrated. Students are expected to be familiar with the
basic literature on the subject matter related with the concerning lecture. Preparing for the lec-
ture by reading the chapters relating to each lecture upfront is highly recommended.
The tutorials focus on developing skills on management accounting cases. The problem solv-
ing competence of the students will be stimulated and trained through working out assess-
ments. Past experience has proved that attaining a workshop is only valuable when students
prepare and make the assignments before the workshop.
A bonus point can be earned by presenting in a group of students a worked out assignment. A
bonus of 0, 0.25 or 0.5 on top of the exam grade will be given, depending on the quality of
problem solving and the presentation. Presenting an assignment is not compulsory. Only stu-
dents that visit at least 6 out of the 8 workshops are offered the chance to give a presentation
to deserve a bonus point.

1
 Course Material
The book of Hilton (Managerial Accounting, 2005) will be used, as well as additional articles.
The book is accompanied by a student CD-Rom and a website with an online study center
(http://www.mhhe.com/hilton6e).

Course content
Week Form Theme Chapters Lecturer
50 Lecture 1 Introduction, Basic Cost Concepts Ch. 1, 2 De Vries
51 Lecture 2 Costing Systems: Product and Process Costing Ch. 3, 4 V.d. Berg
51 Workshop 1 Introduction, Basic Cost Concepts, Ch. 1, 2, 3 De Vries/
Product Costing Boons
2 Lecture 3 Activity-based Costing and Activity-based Ch. 5, 6 De Vries
Management
2 Workshop 2 Process Costing, Activity-based Costing Ch. 4, 5, 6 De Vries/
And Activity-based Management Cools
3 Lecture 4 Determining how Costs behave and Ch. 7, 8 V.d. Berg
Cost-Volume-Profit Relationships
3 Workshop 3 Determining how Costs behave and Ch. 7, 8 De Vries/
Cost-Volume-Profit Relationships Cools
4 Lecture 5 Budgeting & Variance Analysis Ch. 9, 10, V.d. Berg
11
4 Workshop 4 Budgeting & Variance Analysis Ch. 9, 10, De Vries/
11 Cools
5 Lecture 6 Decision Making (Relevant Costs), Target Ch. 14, 15 V.d. Berg
Costing and Cost Analysis for Pricing Decisions
6 Lecture 7 Performance Measurement and Ch. 10 De Waal
The Balanced Scorecard (guest lecture)
6 Workshop 5 Decision Making (Relevant Costs), Target Ch. 14, 15 De Vries/
Costing and Cost Analysis for Pricing Decisions Cools
7 Lecture 8 Investment Centers, Transfer Pricing & Ch. 13, 16 V.d. Berg
Capital Expenditure Decisions
7 Workshop 6 Investment Centers, Transfer Pricing & Ch. 13, 16 De Vries/
Capital Expenditure Decisions Cools
8 Lecture 9 Cost allocation: Joint Costs & Stock Costing Ch. 17, 18 V.d. Berg
8 Workshop 7 Cost allocation: Joint Costs & Stock Costing Ch. 17, 18 De Vries/
Cools
9 Lecture 10 Responsibility Accounting, Quality and Environ- Ch. 12 Vries/ van
mental Cost Management (incl. guest lecture) Heeren
9 Workshop 8 Performance measurement, Responsibility Ac- Ch. 10, 12 De Vries/
counting, Quality and Environmental Mngt. Cools
10 Exam training De Vries