Faculty of Business: Accounting
Credit points: 8 cp

Subject level: Postgraduate

Result Type: Grade and marks

Handbook description

This subject examines the role of management accounting in the process of planning, control and performance evaluation of contemporary organisations at corporate, divisional and functional levels. The topics covered include consideration of what it means to have an organisation in control, how to ensure good control and how to choose control system alternatives that best suit operations in order to enhance overall performance. Special control issues relevant to international operations and inter-organisational ventures are also discussed.

Subject objectives/outcomes

On successful completion of this subject students should be able to:

1. Develop an understanding of the role of management accounting, planning, control and performance evaluation processes in contemporary organisations.
2. Develop skills to identify and understand the nature and determinants of organisational choices with regard to planning, control and performance evaluation processes.
3. Identify and understand planning, control and performance evaluation issues relevant to inter-organisational collaboration ventures and international operations.
4. Demonstrate skills in researching relevant organisational and management accounting literature, and an understanding of the logic of research as it applies to the role of management accounting, planning, control and performance evaluation of contemporary organisations.

Contribution to graduate profile

This subject examines the role of management accounting concepts and practices used for developing information support for the planning, control and performance evaluation of business operations in contemporary organisations at corporate, divisional, and functional levels. The theory and practice of the design and implementation of management control systems is examined in detail from a management accounting perspective. The subject will also cover the merging of diverse corporate cultures and the impact on management control in those situations where international joint ventures are undertaken, with consideration of ethical issues, communications and information technology.

Teaching and learning strategies

The subject is taught in lecture seminar format. Theoretical concepts and their application to real-world situations will be covered in formal lectures and the ideas considered will be further explored in a seminar setting where students contribute by analysing the latest research and a number of case studies. The cases provide a wide range of settings where the practical consequences of the topics studied can be further understood and evaluated. Guest lecturers will be invited to present special topics.

Students are strongly encouraged to explore and critically evaluate the relationship between research outcomes and the world of practice by participating actively in the course. All students are required to complete the set readings and prepare pro-forma answers to case studies, practise exercises and discussion questions as a basis for participation in class discussion.

Content

• Planning, control and management control systems
• Action, results and personnel controls
• Management control alternatives and their effects
• Financial results control systems
• Performance measurement and evaluation
• Rewards and punishments
• Planning, control and performance evaluation – contemporary issues
• International operations and inter-organisational collaboration ventures
• Corporate governance control-related roles and ethics

Assessment

Research Project (Group)	20%
Addresses objectives 1, 2 and 4.
Essay (Individual)	20%
Addresses objectives 1 and 4.
Exam (Individual)	60%
Addresses objectives 1-4.

To pass the subject, students must achieve at least 40% of the marks allocated to the final examination.

Recommended text(s)

Merchant, K.A. and Van der Stede, W.A. (2007) Management Control Systems: Performance Measurement, Evaluation and Incentives, 2nd Edition, FT/Prentice Hall, London

Indicative references

Child, J. and Faulkner, D. (1998) Strategies of Co-operation, Managing Alliances, Networks and Joint Ventures, Oxford University Press, Oxford

Horngren, C.T., Foster, G., Datar, S.M. (2006) Cost Accounting A Managerial Emphasis, 12th Edition, Prentice Hall, Upper Saddle River

Kaplan, R.S., Atkinson, A.A. (1998) Advanced Management Accounting, 3rd Edition, Prentice-Hall, Upper Saddle River

Macintosh, N.B. (1994) Management Accounting and Control Systems, John Wiley & Sons, Inc., New York

Moores, K. and Booth, P. (1994) Strategic Management Accounting, Australasian Cases, John Wiley and Sons, Brisbane

Simons, R. (2000) Performance Measurement & Control Systems for Implementing Strategy, Pearson Education International, Upper Saddle River, New Jersey

Simons, R. (1995) Levers of Control, Harvard Business School Press, Boston