Learning objectives
a. Knowledge and understanding: students will acquire knowledge and understanding of advanced Budgeting, Performance Analysis, and Costing.
b. The ability to apply the acquired knowledge and understanding to prepare an analysis of production costs or, more generally, to determine the value of a 'cost object' through the use of advanced costing systems. Besides students will be able to apply and understand advanced budgeting systems and performance evaluation and reporting techniques. Likewise, students will have acquired the ability to apply and use some software (MS Excel/Solver, and Wolfram Alpha).
c. Autonomy of judgment: the student will be able to profitably deal with the interpretative logic of alternative costing systems, business programs (including flexible ones) and modern reporting systems, also through the acquisition of an interpretative model suitable for a possible in-depth study of the subject.
d. Communication skills: at the end of the course, students will acquire the ability to analyze problems (problem-solving skills), interpersonal skills and communication skills in written and oral form in an effective way, using appropriate language to discuss those issues with different stakeholders.
e. Learning skills: the course aims to support students learning through a correct approach to individual study and through the development of classroom exercises.
Prerequisites
It is assumed in this course that students have an appreciation and good understanding of the basic cost accounting and budgeting concepts and techniques. Hence suggested prerequisites are Basic Financial Accounting, Basic Management Accounting, Basic Statistics, and Spreadsheet software.
Course unit content
The contents of the course are related to "Strategic Management Accounting", then to specific advanced management accounting topics, in compliance with the Institute of Management Accountants, IMA, and the Chartered Institute of Management Accountants, CIMA.
In particular, the contents include the following topics:
1. Advanced Budgeting: Flexibilization and Probabilistic Analysis.
2. Strategic Performance Measurement: Reporting, and Business Intelligence.
3. Advanced Costing Systems, and Capacity Costs Allocation.
The topics are addressed using software, e.g., Solver (MS-Excel add-in), Wolfram Alpha (Wolfram Mathematica), and others.
Full programme
Bibliography
Cilloni A., Stochastic Budgeting, And Advanced Cost Systems, 2024, Giappichelli Publishing.
Optional Readings
Horngren C. T. et alii, Introduction to Management Accounting, 17th Global Edition, Pearson Publishing.
Teaching methods
Acquisition of knowledge: lectures.
Acquisition of the ability to apply knowledge: exercises.
Acquisition of judgment: exercises and classroom discussions.
Acquisition of learning skills: development of guided exercises and case studies.
Acquisition of technical language: The meaning of commonly used terms is explained, and classroom discussions aim to encourage the correct use of terminology.
Assessment methods and criteria
The learning assessment will be conducted through a written exam, with the possibility of an oral examination for all or part of the participating students if the results of the written exam do not allow for an effective evaluation of individual preparation. The written exam consists of two parts.
The first part covers the theoretical aspects of Management Accounting (Budgeting, Performance Evaluation, and Costing). It includes an open-ended question (requiring a comprehensive answer worth 5 points) and six short questions (MCQ, TFQ, or short essay), each valued at two points for a total of 12 points.
The second part, of a practical nature, consists of a Budgeting and/or Performance Evaluation exercise, as well as Costing, and is worth 15 points.
The time allocated for the exam is 60 minutes.
The exam may involve the use of electronic devices.
Knowledge and understanding (a) will be assessed through the open-ended question designed to evaluate knowledge and the student's ability to make connections between topics. The short questions cover a wider range of contents and aim to test knowledge of all topics covered in the program. The ability to apply knowledge and understanding (b), judgment autonomy (c), and learning ability (e) will be assessed through both the open-ended question, requiring students to make connections between topics, and the exercise that requires the application of budgeting and/or performance analysis, and costing concepts. Communication skills (d) will be assessed through the open-ended question, which requires appropriate language.
Both parts will be scored out of thirty, and the final grade will be the average of the scores obtained in the two parts. A passing grade is required in both parts of the exam.
Distinction will be awarded to particularly meritorious students who, in addition to obtaining a full score in the exam, have demonstrated an appreciable systematic knowledge of the subject, excellent application of acquired knowledge to specific problems, significant judgment autonomy, and careful formal drafting.
Other information
2030 agenda goals for sustainable development
This teaching contributes to the realization of the UN objectives of the 2030 Agenda for Sustainable Development
