Planning and Management Control
A.Y. 2020/2021
Learning objectives
The class in Management Accounting is part of the studies of Advanced Business Economics, and is based on the skills acquired in the courses of Business Economics and Budget Analysis, with the aim of providing students with additional and more advanced tools for the acquisition of information and the processing of management decisions within the company based on data acquired through financial accounting, management accounting and budgeting.
The objective of the course is to provide students with a theoretical and applied knowledge of management control within the company, used as a process of organizational control and coordination, aimed at rational planning and decision making.
The course will provide general notions and skills in management accounting and control, as well as practical tools for reporting and measuring performance from an internal management point of view.
The objective of the course is to provide students with a theoretical and applied knowledge of management control within the company, used as a process of organizational control and coordination, aimed at rational planning and decision making.
The course will provide general notions and skills in management accounting and control, as well as practical tools for reporting and measuring performance from an internal management point of view.
Expected learning outcomes
At the end of the class the student will be able to:
Knowledge and understanding: describe the concepts and criteria of design of the management control system and management accounting
Ability to apply knowledge and understanding:
- analyze the characteristics of methods of analysis and cost management for decisions and control
- design the management accounting tools for the governance of corporate equilibria in the mid-long term;
- create quantitative tools to support the budgeting process and budget preparation
Making judgements: to understand the critical factors of the company's success starting from the knowledge acquired during the course of studies, integrating economic skills, company and budget knowledge and quantitative tools to support the decision-making process for the pursuit of company objectives.
Communication skills: to draw up clear reporting tools that can also be used by third parties, in a context of organizational coordination, using languages and methods based on international best practices on the subject.
Learning skills: use the tools of planning and control as a means of integrating the skills acquired during the course of study with the work experience within the company, to develop more skills and acquire technical decision-making skills aimed at achieving the objectives and mission in which the student will operate.
Knowledge and understanding: describe the concepts and criteria of design of the management control system and management accounting
Ability to apply knowledge and understanding:
- analyze the characteristics of methods of analysis and cost management for decisions and control
- design the management accounting tools for the governance of corporate equilibria in the mid-long term;
- create quantitative tools to support the budgeting process and budget preparation
Making judgements: to understand the critical factors of the company's success starting from the knowledge acquired during the course of studies, integrating economic skills, company and budget knowledge and quantitative tools to support the decision-making process for the pursuit of company objectives.
Communication skills: to draw up clear reporting tools that can also be used by third parties, in a context of organizational coordination, using languages and methods based on international best practices on the subject.
Learning skills: use the tools of planning and control as a means of integrating the skills acquired during the course of study with the work experience within the company, to develop more skills and acquire technical decision-making skills aimed at achieving the objectives and mission in which the student will operate.
Lesson period: Second trimester
Assessment methods: Esame
Assessment result: voto verbalizzato in trentesimi
Single course
This course cannot be attended as a single course. Please check our list of single courses to find the ones available for enrolment.
Course syllabus and organization
Single session
Responsible
Lesson period
Second trimester
If it will be necessary to switch to alternative teaching methods for the SARS-CoV-2 pandemic emergency, classes will be partially recorded by the teachers or assigned for flipped-classes to students. Presentation of the flipped classes could be recorded or presented synchronously, depending also on the numerosity of the enrolled students.
Additional practical activities can be assigned to complete learning and to achieve expected results.
Information regarding the emergency will be promptly published on the ARIEL teaching platform and on the TEAMS group that will be created at the start of the class.
Additional practical activities can be assigned to complete learning and to achieve expected results.
Information regarding the emergency will be promptly published on the ARIEL teaching platform and on the TEAMS group that will be created at the start of the class.
Course syllabus
1. The management control system
The role of operational mechanisms in corporate governance. The elements constituting management control: a theoretical reference scheme. New directions in management control in the light of changes in the economic environment.
2. Management control as an organizational coordination tool
Types and role of centres of economic responsibility. Criteria for the analysis of the organizational dimension of management control. Performance measurement in divisionalized companies: principles and target parameters according to the accounting and economic approach.
3. The control process
The definition of corporate objectives. The clarification of actions and the evaluation of the results of the centres of economic responsibility. The integration of accounting information with market information. The actors in the control process and the role of the CFO and controller.
4. Economic and financial planning tools
The role of management accounting. The quantitative methods of representing the company's financial dynamics. The governance of business balances in the medium term: planning and plan. The governance of short-term corporate balances: budgeting and budgeting.
5. Fundamentals of cost analysis in manufacturing and service companies.
Management accounting and analytical business measurements. Costs: terms; concepts and classification of costs by purpose.
Cost behavior (analysis and use) and cost-volume relationships.
6. Cost information to support decision making
Decision-making models and the decision-making process. The decision: concept; dimensions and types. The short-term decisions: characteristics of the decisions and stages of the process (classification of proposals, analysis of alternatives, acceptance criterion).
7. Costing systems
Absorption Costing, Variable costing, Activity-Based Costing. Standard costing and variance analysis, Backflush costing for JIT systems.
8. Management accounting to govern competitive advantage
Activity-Based Costing and Activity-Based Management. Target costing and Life cycle costing.
9. Non-financial performance measures
Productivity, Quality.
10. The reporting system
Aims, elements and criteria of analysis. Economic and financial reporting and non-traditional reporting systems.
The role of operational mechanisms in corporate governance. The elements constituting management control: a theoretical reference scheme. New directions in management control in the light of changes in the economic environment.
2. Management control as an organizational coordination tool
Types and role of centres of economic responsibility. Criteria for the analysis of the organizational dimension of management control. Performance measurement in divisionalized companies: principles and target parameters according to the accounting and economic approach.
3. The control process
The definition of corporate objectives. The clarification of actions and the evaluation of the results of the centres of economic responsibility. The integration of accounting information with market information. The actors in the control process and the role of the CFO and controller.
4. Economic and financial planning tools
The role of management accounting. The quantitative methods of representing the company's financial dynamics. The governance of business balances in the medium term: planning and plan. The governance of short-term corporate balances: budgeting and budgeting.
5. Fundamentals of cost analysis in manufacturing and service companies.
Management accounting and analytical business measurements. Costs: terms; concepts and classification of costs by purpose.
Cost behavior (analysis and use) and cost-volume relationships.
6. Cost information to support decision making
Decision-making models and the decision-making process. The decision: concept; dimensions and types. The short-term decisions: characteristics of the decisions and stages of the process (classification of proposals, analysis of alternatives, acceptance criterion).
7. Costing systems
Absorption Costing, Variable costing, Activity-Based Costing. Standard costing and variance analysis, Backflush costing for JIT systems.
8. Management accounting to govern competitive advantage
Activity-Based Costing and Activity-Based Management. Target costing and Life cycle costing.
9. Non-financial performance measures
Productivity, Quality.
10. The reporting system
Aims, elements and criteria of analysis. Economic and financial reporting and non-traditional reporting systems.
Prerequisites for admission
The course takes place in the second quarter of the third year of the three-year degree in Economics and Management (EMA) and assumes at least two specific prerequisites: Accounting (first year) and Financial Statement Analysis (second year).
As far as the prerequisites are concerned, students are asked to return to the topics dealt with in: a) Business Economics in terms of accounting and financial statements preparation; b) Financial Statements analysis with particular attention to valuations and ratios.
As far as the prerequisites are concerned, students are asked to return to the topics dealt with in: a) Business Economics in terms of accounting and financial statements preparation; b) Financial Statements analysis with particular attention to valuations and ratios.
Teaching methods
Teaching is about:
- frontal lessons;
- discussion of business cases in the classroom with presentation and active participation of students;
- external testimonies
NB: Frequency and systematic study are strongly recommended for learning.
- frontal lessons;
- discussion of business cases in the classroom with presentation and active participation of students;
- external testimonies
NB: Frequency and systematic study are strongly recommended for learning.
Teaching Resources
- L. BRUSA, Sistemi manageriali di programmazione e controllo, 2012, Giuffrè Editore
Other texts and articles in specialized journals are reported during the course.
Additional recommended readings:
- C.T. HORNGREEN, G.L. SUNDEM, D. BURGSTAHLER, Programmazione e Controllo, 2016, Pearson
- R.N. ANTHONY, V. GOVINDARAJAN, D. MACRI', Management Control Systems, 2006, McGraw-Hill.
- R.H. GARRISON, E.W. NOREEN, P.C. BREWER, M. AGLIATI, L. CINQUINI, Programmazione e Controllo, 2012, McGraw-Hill
- R.S. KAPLAN, D.P. NORTON, Balanced scorecard, 2000, Isedi
Materials and teaching cases published by the teacher on Ariel
Other texts and articles in specialized journals are reported during the course.
Additional recommended readings:
- C.T. HORNGREEN, G.L. SUNDEM, D. BURGSTAHLER, Programmazione e Controllo, 2016, Pearson
- R.N. ANTHONY, V. GOVINDARAJAN, D. MACRI', Management Control Systems, 2006, McGraw-Hill.
- R.H. GARRISON, E.W. NOREEN, P.C. BREWER, M. AGLIATI, L. CINQUINI, Programmazione e Controllo, 2012, McGraw-Hill
- R.S. KAPLAN, D.P. NORTON, Balanced scorecard, 2000, Isedi
Materials and teaching cases published by the teacher on Ariel
Assessment methods and Criteria
The exam includes a comprehensive compulsory written test or an oral exam (in case of limited numbers of students enrolled in the tests or in case of particular emergency situations), aimed at ascertaining the acquisition of the skills required for teaching, by means of open questions, exercises and reasoning tests.
The results of the examinations are recorded only on the date set by the teacher (President of the Examination Committee).
Admission to the written test is subject to registration on SIFA.
The results of the examinations are recorded only on the date set by the teacher (President of the Examination Committee).
Admission to the written test is subject to registration on SIFA.
SECS-P/07 - BUSINESS ADMINISTRATION AND ACCOUNTING STUDIES - University credits: 6
Lessons: 40 hours
Professor:
Spano Francesco Maria
Professor(s)