Management Accounting A, 7.5 Credits

Contents

This course is intended to introduce participants to the fundamental concepts of management accounting. An emphasis is put on the creation of an understanding of management accounting as a link between the company’s visions, “business idea” and strategies, and the company’s planning-, control- and decision making activities on the strategic, tactical and operational level. To achieve this understanding participants will work with basic models of budgeting and cost allocation these provide an input for planning-, control- and decision making activities.

In order to form the basic foundation for a thorough understanding of a company’s budget system and cost allocation, the concepts of costs and profit will first be discussed. When the budget system is discussed, emphasizes will be put on: the roles of budgets; models for building budgets; the building and interrelation between budgets for income statement, balance sheet and cash flow budgets as a tool for a company’s planning and decision making. When cost allocation is discussed the principal issue of allocating a company’s costs on different products and services are discussed. Models ranging from for full cost allocation to no cost allocation at all are discussed and evaluated with regard to how models can be used for pricing products and services, and as one input for making long and short term decisions regarding a company’s product mix.

Expected learning outcomes

After completing this course, the student should be able to:

• describe how costs and revenues can be classified
• construct budgets and explain interrelations between budgets
• apply cost allocation for pricing decision and decision on product mixes
• analyse consequences for a company with regard to outputs of budgeting and cost allocations
• evaluate models for cost allocation
• enhance skills in oral and written presentation
• use Excel templates in order to generate information for decision making.

Required Knowledge

To enter the course general admission requirements are demanded (exemption is given for required courses in Swedish) as well as special requirements for the subject’s mathematics and social science. The students should have mathematics corresponding to C-level at Swedish Gymnasium (approximately three years in upper secondary education) and social science corresponding to A-level at Swedish Gymnasium. Language: Proficiency in English equivalent to Swedish upper secondary course English B (IELTS (Academic) with a minimum overall score of 6.5 and no individual score below 5.5. TOEFL PBT (Paper-based Test) with a minimum score of 575 and a minimum TWE score of 4.5). TOEFL iBT (Internet-based Test) with a minimum score of 90 and a minimum score of 20 on the Writing Section). The course is only aimed for foreign exchange students studying at Umeå School of Business within formal exchange agreements.

Form of instruction

All teaching, materials and examinations will be in English.
In lectures, concepts and models central for the topic will be presented and discussed. Participants will also be introduced to the practical application of budgeting and cost allocation.

Examination modes

Case (group assigment) and a written exam (individual assigment). A passing grade is required for each part.

All examination will be in English.

The following grading system will be used:
Pass with distinction (Väl godkänd, Vg, 75% or more),
Pass (Godkänd, G, 50% or more)
Fail (Underkänd, U, less than 50%).

Students who fail to present a photo ID at the occasion of a written examination cannot have their results registered.

Students who do not pass the written examination will be offered a re-examination opportunity within a month. Beyond that, additional opportunities to complete the written examination normally arise every academic year one-week prior to the start of the autumn term.

When a student has failed an examination on two occasions, he or she has a right to have an alternative examiner. A written request for an alternative examiner should be handed to the director of studies no later than two weeks before the next examination opportunity.

Student who has passed an examination can not redo the examination to get a higher grade.

In case of failure on seminar participation or individual and group assignments, compensating assignments must be completed in accordance with instructions given, no later than two weeks after the completion of the module.

Rules and regulations concerning the production of academic texts and correct referencing will be applicable to all written assignments. (see instructions in the Thesis manual. Thesis writing in Business Administration.) Urkund records may be used for control.

Lectures are normally not obligatory. However, lectures are designed to facilitate for students to achieve course specific learning objectives as lectures for example can provide insightful explanations of, and can supplement and provide contrast to, the course litterateur and other relevant course materials.

Grades on the course are awarded when students have passed all examinations and compulsory course elements. In order to pass the course, the student must complete all parts of the examination i.e. reach 50% of the points of each part. To receive the grade pass with distinction, the student must reach at least 75% of the total points on the course.

Academic credit transfer
Academic credit transfers are according to the University credit transfer regulations.

Other regulations

The course is included in the International Business Program at Umeå School of Business and Economics. The course is also offered to exchange students within formal exchange agreements.