NBS8233 : Managerial Decision Making and Control
- Offered for Year: 2019/20
- Module Leader(s): Dr Lana Liu
- Demonstrator: Mr Kevin Hunter
- Lecturer: Dr Doris Xin
- Owning School: Newcastle University Business School
- Teaching Location: Newcastle City Campus
|Semester 1 Credit Value:||10|
|Semester 2 Credit Value:||10|
* To provide a sound understanding of the expanding role of management accounting in the changing global environment.
* To deepen understanding of the use of management accounting techniques in decision making.
* To explore the use of advanced cost-planning and control analysis in enhancing corporate competitive advantage.
* To broaden the understanding of current developments in management accounting practice with links to business models of corporate strategy.
* To explore current issues in contemporary management accounting research.
This module focuses on the advanced use of management accounting techniques for strategic and operational management purposes. It is suitable for postgraduate students who need an enhanced understanding of contemporary applications of accounting techniques in managing businesses in both public and private sectors.
Outline Of Syllabus
1 The focus is on the evolving roles of management accounting information in the changing competitive environment. The design, development and implementation of management accounting information systems are then explained.
2 The basic element of a cost and management accounting system is a cost database, so that relevant cost information can be extracted to meet planning, decision making and control needs. Hence the types of cost are clarified with examples of relevant costs and revenues for decision-making.
3 & 4 The use of Activity-based Costing (ABC) information for decision making involves the analysis of pricing decisions and customer profitability.
5 & 6 One of the key issues in accounting systems is cost allocation. These two lectures introduce a general framework for analysing cost allocations in different organisational settings and discuss various methods used by various functional departments.
7 This lecture involves evaluation of various budgeting methods used in public and private sectors (i.e. incremental budgeting, line-item budgeting, PPBS, ZBB, Priority-based budgeting and ABB).
8 & 9 Further examination of the role of budgeting within the planning process in different sectors is undertaken. Also introduced is the latest development in budgeting (i.e. Activity-Based budgeting) and its practical implementation issues.
9 & 10 The design, development and implementation of management information systems are determined by information users, organisational objectives and needs at various organisational levels. Various issues arise – objectives, needs and the conflicts between information for planning and control.
11 An introduction of control within the framework for organisational change.
12 Further evaluations on management control system and issues arisen in performance appraisal and evaluations.
13 &14 The two lectures examine the difficulties that arise from using standard costing when some advanced costing measures (e.g. ABC) are implemented, and look at some suggestions for overcoming them.
15 & 16 The issues of transfer pricing are examined within the context of divisionalised international companies.
17 & 18 Further talks on resolving transfer pricing conflicts.
19 Strategic management accounting consists of performance and cost management, both of which will be introduced in the next few sessions.
20 Strategic performance management looks at how to establish competitive strategies with the balanced scorecard approach and explains how the balanced scorecard links strategy formulation to financial outcomes.
21 & 22 The concept of strategic cost management is introduced with an aim to provide a competitive advantage.
|Guided Independent Study||Assessment preparation and completion||1||48:00||48:00||N/A|
|Scheduled Learning And Teaching Activities||Lecture||16||3:00||48:00||N/A|
|Guided Independent Study||Directed research and reading||1||49:00||49:00||N/A|
|Scheduled Learning And Teaching Activities||Small group teaching||1||1:00||1:00||A computer session to introduce software learning package.|
|Scheduled Learning And Teaching Activities||Small group teaching||4||1:00||4:00||N/A|
|Guided Independent Study||Independent study||1||50:00||50:00||N/A|
Teaching Rationale And Relationship
Lectures and seminars will allow students to develop in-depth understanding of the subject and facilitate deep learning.
The format of resits will be determined by the Board of Examiners
|Report||2||M||20||Group project work 4000 words (typically group of 7)|
|Prob solv exercises||1||M||Seminar questions are provided|
|Prob solv exercises||2||M||Seminar questions are provided|
Assessment Rationale And Relationship
The formal examination tests students’ knowledge and skills outcomes in management accounting, focusing on the preparation, interpretation and application of relevant information. Questions will either be essay-based or numerical-based, or a mixture of the two. They will be based on lectures, seminars sessions as well as the directed reading.
The group project tests students’ critical understanding of management accounting knowledge and application of management accounting techniques by use of an problem/case simulates of real-world complexity