Advanced Costs and Management Control System

“This course use as a foundation the materials covered in the under graduate level to expand upon the concepts fundamental to management accounting from an entity’s strategic perspective. The advanced cost and management controls system reviews various management accounting issues that must be dealt with by companies in order to develop strategies. The course to this end tries to relate accounting issues to organizational theories, integration of divisional performance evaluations, and incentive compensations system into strategic planning and management control systems. The topics covered include strategic cost management (how to implement cost management strategy, including application of various methods in strategy formulation use of ABC/M), cost planning, profit planning, and application of target costing, life cycle costing and theory of constraints in cost planning, operational and management level controls.

As the course assumes fundamentals of cost and management accounting at undergraduate level, topics covered emphasize strategic issues in cost and management accounting used in strategic choices (“accounting for strategic positioning”).

Course Objectives

Upon the successful completion of this course, students should be able to:

• Define cost and management accounting

• Describe the role and place of management accounting in modern business environment

• Apply the ABC and ABM

• Apply cost estimation techniques for cost planning

• Apply strategic cost and management techniques in strategy formulation

• Apply performance measurement techniques

• Describe incentive and motivation

• Describe the place of Management Control Systems, in relation to strategic control, and task control

• Describe the role of modern strategic management accounting / cost management in strategic positioning of a firm