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Advanced Management Accounting & Control (DLMBACCE01)

Course No.:

DLMBACCE01

Course Title:

Advanced Management Accounting & Control

Hours Total:

150 h

Credit Points:

5 ECTS

Course Type: Wahlpflicht

Course Availability: WS, SS

Course Duration: 1 Semester

Admission Requirements:

None

Course Coordinator / Instructor:

See current list of tutors in the Learning Management System

References to Other Modules:

Please see module description

Course Description:

This course deals with advanced aspects of management accounting and control. Students will understand how controllership is set up in international companies and explore the contingencies of management accounting and control, e.g. strategy, organizational life cycle phase, size, and ownership structure. The course also introduces the concept of the levers of control and highlights not only the traditional feedback and constraining function of control systems, but also the learning and expanding function of these control levers. As management accounting and control ultimately aims to influence the behavior of managers and employees when implementing the organization’s goals, behavioral aspects must be considered. Constraints such as limitations concerning the information processing capabilities of managers have to be taken into account when designing management control systems. Furthermore, as companies grow larger and operate in different countries, transfer pricing systems for controlling corporate and shared service centers have to be set up. Upon completion of this course, students will also understand the consequences of different approaches to transfer pricing.

Course Objectives and Outcome:

Upon completion of this course, students will be able to:

  • Describe how controllership is set up in international companies.
  • Explain how management accounting and control have to consider the contingencies under which they are set up.
  • Design management accounting and control processes specific to the contingencies characterizing a specific company.
  • Utilize management accounting and control processes to address strategic uncertainties and support organizational learning.
  • Design, evaluate, and optimize management accounting and control systems and practices to influence the behavior of managers and employees.
  • Identify the importance of transfer pricing for multinational groups.
  • Discuss the role of the CFO in an international company.

Teaching Methods:

A variety of learning materials are offered to students: depending on the course, these include printed and online course books, vodcasts, podcasts, online tutorials, case studies, and online knowledge tests. This range of learning materials is offered to students so they can study at a time, place, and pace that best suits their circumstances and individual learning style.

Course Content:

1. Controllership and the CFO: Core Competencies, Organization, and Strategies

1.1 Management Accounting and Control

1.2 Core Competencies of CFOs and Controllers

1.3 Controllership Strategies

1.4 Organization of the Controller and Finance Unit

2. Contingency Theory and Management Accounting and Control

2.1 Contingency Theory

2.2 Differences in Management Accounting and Control According to Different Contingencies

2.3 Limitations of Contingency Theory

3. Levers of Control

3.1 Levers of Control

3.2 Implications of the Levers of Control for the Management Accounting and Control Function

3.3 Instruments for Different Levers of Control

4. Behavioral Management Accounting and Control

4.1 Cognitive and Behavioral Constraints of Managers

4.2 Implications for the Design of Management Accounting and Control Systems

4.3 Behavioral Aspects of Implementing Management Control Systems

5. Transfer Pricing, and Corporate and Shared Service Centers

5.1 Transfer Pricing Methods

5.2 Transfer Pricing in Multi-National Companies

5.3 Organizing Corporate Centers and Allocation of Their Costs

5.4 Organizing and Pricing of Shared Service Centers

6. Balance Scorecard, Executive Remuneration, and Control

6.1 Balanced Scorecard: An Overview

6.2 Measures in Balanced Scorecard

6.3 Agency Theory and Balanced Scorecard

6.4 Implications of Balanced Scorecard on Control

7. Product Life Cycle, Business Strategy, and Control

7.1 An Overview of Product Life Cycle

7.2 Stages of Product Life Cycle and Business Strategy

7.3 Implications of Product Life Cycle on Control

Literature:

• Atkinson, A. A., Kaplan, R. S., Matsumara, E. M., & Young, S. M. (2012). Management accounting: Information for decision making and strategy execution (6th ed.). Upper Saddle River, NJ: Pearson.
• Bangemann, T. O. (2005). Shared services in finance and accounting. Aldershot, Hants, England: Gower.
• Buytendijk, F. (2010). Dealing with dilemmas: Where business analytics fall short. Chichester: Wiley.
• Chenhall, R. H. (2007). Theorizing contingencies in management control systems research. Handbooks of Management Accounting Research, 2, 163–205.
• Davila, A., & Foster, G. (2005). Management accounting systems adoption decisions: Evidence and performance implications from early‐stage/startup companies. The Accounting Review, 80(4), 1039–1068.
• Lovallo, D., & Kahnemann, D. (2003). Delusions of success: How optimism undermines executives’ decisions. Harvard Business Review, 81(7), 56–63.
• Merchant, K. A., & Pick, K. (2010). Blind spots, biases and other pathologies in the boardroom. New York: Business Expert Press.
• Schuster, P., & Clarke, P. (2010). Transfer prices: Functions, types and behavioral implications. Management Accounting Quarterly, 11(2), 22–32.
• Tarasovich, B., & Lyons, B. (2009). Finance flies high: How Unilever redesigned its finance function to build value and drive growth. Strategic Finance, 91(5), 25–29.
• Tuomela, T. (2005). The interplay of different levers of control: A case study of introducing a new performance measurement system. Management Accounting Research, 16(3), 293–320.
• Weber, J., & Nevries, P. (2010). Drivers of successful controllership: Activities, people, and connecting with management. New York: Business Expert Press.
• Wickramasinghe, D., & Alawattage, C. (2007). Towards contingency theory of management accounting. In Management accounting change: Approaches and perspectives (pp. 381–407). London: Routledge.
• Wickramasinghe, D., & Alawattage, C. (2007). Towards contingency theory of management accounting. In Management accounting change: Approaches and perspectives (pp. 381–407). London: Routledge.

Prerequisites to Qualify for Assessment:

• Depending on the course: Completion of online knowledge tests (approx. 15 minutes per unit, pass / not pass)
• Course evaluation

Assessment:

Exam, 90 min.

Student Workload (in hours): 150

Self-study: 90
Self-testing: 30
Tutorials: 30