1. EDABS 201 Management Accounting and Controls (MAC) – 15 credits
Facilitator
Priyanka Darshana
MBA(Strategy), ACMA(UK), CGMA, ACMA( SL), B.B MGT(MKTG)SP

2. Module content
1.Development of management accounting practices: before and after the “Relevance Lost” thesis – 10%
2. Preparing budgets and a reflection on them in terms of business plans, KPIs, balanced scorecards, and similar PMS practices – 25%
3. Recent developments in cost management practices and their relationship with the PMS contexts above and strategic significance thereof -20%
4. Use of decision-making tools in the context of varying management scenarios – 15%
5. Recent developments in management control practices and their relationships with management information systems in organizations – 20%
6. Preparing basic management reports focusing on management scenarios and emphasizing the use of management accounting tools – 10%

3. Assessment Methods
1. 40% - In-course assignment: 2500 – 3000 word essay on an evaluation of the development of management accounting practice
2. 60% - Final unseen exam: 3-hour closed book exam

4. Accounting
“Accounting is provision of information for the relevant stakeholders of the business”

5. Branches of Accounting for Information purpose
Financial Accounting
Management Accounting
Financial Management
External reporting
Internal reporting
Investment Decision
Finance Decision
Dividend Decision

6. Role of Management Accounting
Informations
Managers

7. Management Accounting
Management accounting is the process of identifying, measuring, reporting and analyzing information about economic events of organization. The process should be driven by the informational needs of individuals internal to the organization and should guide their operating and investment decisions (Atkinson et al, 1997).

8. Organizational function and Management Accounting information
Operational control
Provide feedback information about the efficiency and quality of tasks performed
Product and customer costing
Measure the costs of resources used to produce a product or service and market and deliver the product or service to customers
Management control
Provide information about the performance of managers and operating units
Strategic control
Provide information about the enterprise’s financial and long-run competitive performance, market conditions, customer preferences, and technological innovations.

9. RELEVANCE LOST. THE RISE AND FALL OF MANAGEMENT ACCOUNTING” by H
RELEVANCE LOST. THE RISE AND FALL OF MANAGEMENT ACCOUNTING” by H. Thomas Johnson and Robert S. Kaplan, Harvard Business School Press, Boston, MA, 1987

10. Diffusion of Management Accounting
Cost Accounting
Management Accounting
Strategic Management Accounting
Sustainable Management Accounting
After 1990
Customer value & Shareholder value
Before 1950
Cost focus
Profitability & Waste reduction
2013
Economic, Environmental and Social

11. Management Accounting and Changing Business Landscape
By the 1990s, many organisations realised that they needed to improve their product and service quality, delivery responsiveness and cost performance in order to improve market share and profits
Competitive success factors are fast response, innovation, operational excellence and customer intimacy.
Adoption of new management structures, systems and practices, including new management accounting techniques and systems

12. SMA
“In increasingly dynamic environment the provision of strategically relevant information is paramount importance to formulate and execute the business strategies and methods of providing such a information is SMA” Dixon & Smith (1993)

13. What is SMA?
“ SMA considers the plans of competitors, where the main objective is to place and keep the firm in a position of competitive advantage. Therefore SMA is collection of competitor information, exploiting the cost reduction opportunities, and matching of accounting emphasis with strategic position” Lord(1996)

14. Strategic information
Internal organizational information
External information
Strategic planning, execution and control

15. Strategic Management Accounting practices
Balance score card (BSC)
Activity base costing(ABC)
Activity base management (ABM)
Value chain analysis
Life cycle costing
Target costing
Customer profitability analysis
Product profitability analysis
BCG Matrix
Porters generic strategy
Ansoff matrix
Porters 5 forces Analysis

16. Rational planning model (RPM)