Introductory description

This module will develop the technical skills of students as well as enhancing their understanding of the behavioural consequences of management accounting processes, enabling strategic decision-making.

Module web page

Module aims

Outline syllabus

This is an indicative module outline only to give an indication of the sort of topics that may be covered. Actual sessions held may differ.

The module material will include some or all of the following topics:
Cost behaviour.
Financial management.
Short term decision making.
Product costing and pricing decisions.
Business performance measurement.
Strategic management accounting.

Learning outcomes

By the end of the module, students should be able to:

• Demonstrate and understanding of the main goal-oriented theories of human behaviour and relate them to the design of performance evaluation systems in organisations.
• Demonstrate an advanced understanding of various organisational structures and performance measurement designs, including unintended consequences of measuring certain behaviours.
• Critically evaluate different costing systems and predict the decisions (good and bad) which they may lead to under particular circumstances.
• Critically appraise performance measurement systems and evaluate their effectiveness.
• Develop predictions regarding human responses to various performance measurement methods.
• Develop predictions relating to the firm-level outcomes of internal divisional reward systems.

Indicative reading list

Proctor, Ray (2012) Managerial Accounting for Business Decisions (4th ed)
Bromwich, M., 1990. The case for strategic management accounting: the role of accounting information for strategy in competitive markets. Accounting, Organizations and Society.
Langfield-Smith, K., 2008. Strategic management accounting: how far have we come in 25 years? Accounting, Auditing and Accountability Journal.
Hopper, T., 2011. Management accounting: strategic decision making, performance and risk. Journal of Accounting and Organizational Change 7.
Abdel-Kader, M. and Luther, R., 2008. The impact of firm characteristics on management accounting practices: a UK-based empirical analysis. British Accounting Review 40: 2-27.

Subject specific skills

Design effective reward systems in various contexts.
Set product prices and make product mix decisions in a multi-product environment.
Design budgets for projects and organisations.
Be able to calculate product costs under different systems.

Transferable skills

Oral communication.
Written communication.
Problem solving.