Lifelong Learning for a Brighter World

Jing Zhou, McMaster University Continuing Education Accounting graduate Jing Zhou, McMaster University Continuing Education Accounting graduate

Accounting

Cheques and balances. It all adds up.

Work towards your CPA designation!

ACC 930 - Advanced Management Accounting C01

Academic Credit Value:
3 units
Course Delivery Mode:
In-Person
Hours of Study:
42 hours
Course Prerequisite(s):
ACC 925 Introductory Financial Accounting & ACC 929 Intermediate Management Accounting or equivalents
Course Anti-requisite(s):
N/A
Instructor Name:
Kris G. Krishnan, M. Eng. (McMaster), MBA (Toronto), P. Eng, CPA, CMA, CMC, PMP
Course Dates:
09/21/2019 - 12/21/2019



Required Course Materials:
Cost Accounting: A Managerial Emphasis. 8th Canadian Edition: Horngren, Datar et al. Pearson, 2018.
Optional Course Materials:
N/A
Course Description:

Students are advised to retain course outlines for future use in support of applications for employment or transfer of credits.
Refer to the Policy & Procedure section for further course and Centre for Continuing Education (CCE) information. 

This is an advanced course in Managerial Accounting. It builds on the concepts and tools already learned in the Introductory and Intermediate Financial and Management Accounting Courses. The focus is mainly on the application of cost management, financial management and accounting concepts towards corporate and organizational business decisions.

Advanced Managerial Accounting (AMA) focuses on the design and execution of effective Planning & Control Systems linking short and long-term goals and objectives of organizations – both profit and non-profit. The thrust is on effective Corporate Governance and Execution.


This course is designed to understand the concepts behind the “Current Best Practices” and their relevance in the managerial decision process. Topics include Planning for Operational Profits based on current Pricing models, Transfer Pricing and performance evaluation techniques in Decentralized Operations, Capital Budgeting for long-term Sustainability and Growth.  It also introduces the current best practices in the industry using “Balanced Scorecard” towards corporate governance in both profit and non-profit organizations.

Instructional Methodology

The course is intensive and designed to be interactive. As an advanced course, it also integrates concepts drawn from complementary disciplines such as Economics, Corporate Finance, Marketing, HR, IT, Quantitative Methods that are essential for strategic management decisions.

The current best practices are illustrated through management cases, classroom discussions and analysis. This is supplemented by reporting practical and yet rigorous business solutions in a group environment.

Please note that regular attendance and participation in class discussion is mandatory to receive the 10% allocated for this process

Learning Outcomes:
The focus on this course is to prepare the participants to think critically and strategically, act and provide analysis and add value to senior management team in making business decisions.  Participants develop key expertise, through case studies, in designing and implementing effective planning and control systems to provide managerial transparency and corporate governance.    
Course Evaluation
The final grade is calculated based on the following components:

 Class Attendance, Participation & Case Discussions  10%
 Submission - A set of Cases (3 in Total) 35%
 Mid-term Examination (in-class, Proctored) 25%
 Final Examination (In-class, Proctored) 30%
 Total Marks 100%

• The cases for submission will be periodically posted, in advance, at Avenue to Learn (A2L).

• Case analysis and submission is based on a group basis – no more than 3 students per group.​

Others:
Class Notes, Case analysis and Assignments are posted at Avenue to Learn (A2L). It is the responsibility of the students to access them, read them and participate in the class for discussions.

The cases and assignment submissions are evaluated on a group basis - Please form your own groups. The recommended size is three - to be formed by the participants. 

Other considerations:
Be familiar with the various topics covered so far (previous semesters)- These background materials are required for comprehensive case analysis and applications during this semester.
Absence from the exams should be notified in writing and approval obtained in advance for deferred exams from the Centre for Continuing Education. Consult CCE for appropriate policy.
Both the mid-term and final exams will be conducted and proctored in the class rooms.
Case submissions and assignments are approximately at three weeks intervals.
Assignments must be submitted on time as indicated in the course outline below to avoid penalties.  

Course Format:
This course is designed to present the fundamental concepts and theories in Advanced Management Accounting and promote the application to the workplace and professional practice. Course activities will include instructor presentations, required readings and experiential learning activities (i.e. case studies, group discussions, projects, etc.).
Assignment Submission:
Course assignments are submitted to the appropriate A2L Assignment folder by the specified due date
Late Coursework:
Late assignments will be subject to a 2% per day late penalty (includes weekends and holidays) for up to seven (7) days. After this date, no assignments will be accepted and a grade of zero (0) will be applied.  Extensions for course work must be approved by the instructor before the due date (see Academic Regulations below), and will be granted for illness or emergencies only. Students may be asked to submit supporting documentation for an extension request.  NOTE:  This policy applies to assignments and other hand in type coursework only.  This policy does not apply to discussion board topics/postings which do not allow for late postings/contributions.

Policy & Procedures:

Academic Regulations (Attendance, Coursework, Tests/Exams):
In accordance to McMaster University’s General Academic Regulations, “it is imperative that students make every effort to meet the originally scheduled course requirements and it is a student’s responsibility to write examinations as scheduled.” Therefore, all students are expected to attend and complete the specific course requirements (i.e. attendance, assignments, and tests/exams) listed in the course outline on or by the date specified. Students who need to arrange for coursework accommodation, as a result of medical, personal or family reasons, must contact the course instructor within 48 hours of the originally scheduled due date. It is the student’s responsibility to contact the Program Manager to discuss accommodations and procedures related to deferred tests and/or examinations within 48 hours of the originally scheduled test/exam, as per policy. Failure to contact the course instructor, in the case of missed coursework, or the Program Manager, in the case of a missed test/examination, within the specified 48-hour window will result in a grade of zero (0) on the coursework/exam and no further consideration will be granted.

*Note: Supporting documentation will be required but will not ensure approval of accommodation(s).

Academic Integrity
You are expected to exhibit honesty and use ethical behaviour in all aspects of the learning process. Academic credentials you earn are rooted in principles of honesty and academic integrity. Academic dishonesty is to knowingly act or fail to act in a way that results or could result in unearned academic credit or advantage. This behaviour can result in serious consequences, e.g. the grade of zero on an assignment, loss of credit with a notation on the transcript (notation reads: “Grade of F assigned for academic dishonesty”), and/or suspension or expulsion from the university.

It is your responsibility to understand what constitutes academic dishonesty. For information on the various types of academic dishonesty please refer to the Academic Integrity Policy, located at http://www.mcmaster.ca/academicintegrity/

The following illustrates only three forms of academic dishonesty:

  1. Plagiarism, e.g. the submission of work that is not one’s own or for which other credit has been obtained.
  2. Improper collaboration in-group work.
  3. Copying or using unauthorized aids in tests and examinations.
Academic Accommodations:
Students with disabilities who require academic accommodations must contact the Student Accessibility Centre (SAS) to meet with an appropriate Disability Services Coordinator. To contact SAS, phone 905-525-9140 ext. 28652, or email sas@mcmaster.ca. For further information, consult McMaster University’s Policy for Academic Accommodation for Students with Disabilities.
On-line Elements:
In this course, we will be using on-line elements, which may include email, Avenue to Learn, WebEX, and external web sites.  Students should be aware that, when they access the electronic components of this course, private information such as first and last names, user names for the McMaster e-mail accounts, and program affiliation may become apparent to all other students in the same course. The available information is dependent on the technology used. Continuation in this course will be deemed consent to this disclosure. If you have any questions or concerns about such disclosure please discuss this with the course instructor.
Turnitin.com:
Course Changes:
The instructor reserves the right to modify elements of the course and will notify students accordingly.
Course Withdrawal Policy:
Policies related to dropping a course and course withdrawals are posted to the Centre for Continuing Education’s program webpage, FAQs & Policies (https://www.mcmastercce.ca/cce-policies#Dropping).
Storm Closure Policy:
In the event of inclement weather, the Centre for Continuing Education will abide by the University’s Storm Closure Policy: https://www.mcmaster.ca/policy/Employee/storm_emergency_policy.pdf, and will only close if the University is closed. All in-class courses, exams and room bookings by internal and external clients will be cancelled if the Centre for Continuing Education is closed. On-line courses will take place as scheduled.
Grading Scale:
 Grade Equivalent
Grade Point
Equivalent Percentages
A+ 12 90-100
A 11 85-89
A- 10 80-84
B+ 9 77-79
B 8 73-76
B- 7 70-72
C+ 6 67-69
C 5 63-66
C- 4 60-62
D+ 3 57-59
D 2 53-56
D- 1 50-52
F 0 0-49
Course Schedule:

Week                           Course Description                                                     

Topic # 1                     Profitability & Pricing Models             (Two Sessions)

1                                  Planning & Control Systems - An Overview            

                                    Reading for next week:

                                    Case study Reading: Hamilton Drives Limited

                                   Case Analysis # 1 for submission: To be posted at A2L

2                                  Business Model and Pricing Decisions                         

                                    Planning for Profit; Case & Applications                       

Learning Outcomes:  Topic #1

  • Review of corporate goals and objectives - Short & Long-terms
  • Understanding Information needs for business decisions
  • Concepts of planning & Controls - Current Best Practices
  • Business Model - Planning for Profits, Pricing Models
  • Cost / Market / Economic / Value Based Pricing strategies
  • Case Analysis: Case discussion and developing viable solutions for reporting

Key Concepts:

  • CVP analysis, Activity Based Costing, Cost Allocations, Pricing Models
  • Planning for Profit - Operational focus and sustainability

Topic # 2                     Decentralization & Transfer Pricing    (Two Sessions)           

3                                  Decentralization & Transfer Pricing                                 

                                    Case assignment due:  Case # 1                                                                                         

4                                  Transfer Pricing – Theory & Case Discussions                 

                                    Case discussion and solution: Securities International

                                    Case Analysis #2 for submission: To be posted at A2L

Learning Outcomes:  Topic #2

  • Concepts of decentralization in organizations and Transfer Pricing
  • Transfer pricing between autonomous divisions – Local / Global
  • Relevance of Goal Congruence, Autonomy and Managerial Motivation
  • Case Analysis: Discussion and developing viable solutions for case reporting

Key Concepts:

  • Marginal Costs, Contribution Margin, Break-even volume, Financial Analysis, Taxes,
  • Basic economic principles – supply and demand and impact on costing and pricing
  • Performance evaluation of decentralized business units
  • Tax considerations in transfer pricing

Topic # 3                     Business Performance  (Two sessions)

5                                  Performance Evaluation – Key Financial aspects                                                                                                                                                                 

6                                  Performance Evaluation - Non-Financial aspects                          

  • Case assignment due: Case # 2

Learning Outcomes:  Topic #3

  • Understanding commonly used performance evaluation systems
  • Concept of ROE / ROI, Economic Value Added (EVA)
  • Developing Financial Metrics for Short & Long-term focus (Sustainability)
  • Understanding of Key Result Areas (KRA) / Critical Success Factors (CSF)
  • Key Performance Indicators (KPI) meeting corporate strategy and objectives
  • Understanding Balanced Scorecard & Developing ‘Strategy Maps’ for implementation
  • Case for discussion: Peanut Butter Company

Key Concepts:

  • Financial Performance, Asset Management, Required Returns, Financial Ratios
  • Capital Structure, Sustainability, Economic Value Added
  • Integrating Strategy and operational goals and objectives
  • Introduction to Balanced Scorecard

7                                  Mid-term Exam (To be written in-class and proctored)

Topic # 4                     Capital Expenditure Decisions             (Two sessions)

8                                  Capital Expenditure Decisions                                                     

9                                  Capital Expenditure Decisions (Risk Management)                   

Learning Outcomes:  Topic #4

  • Understanding the concept of Time value of money, compounding / discounting applications
  • Cost of capital and its application in Capital Expenditure Decisions
  • Tools: Payback, Net present Value (NPV), Internal Rate of Return (IRR), Accounting Rate of Return (ARR)
  • Risk analysis in Capital Budgeting

Key Concepts:

  • Compounding and Discounting & Managerial Decisions
  • Capital structure, Asset Management and Investment Decisions
  • Tax Considerations in investment decisions
  • Risk Management in capital budgeting           

Topic # 5                     Non-Profit Organizations         (One and a half Sessions)

10                                Non-profit organizations - Basic control systems                        (Handouts)

                                    Case Assignment # 3: To be posted at A2L

11                                Non- Profit Organizations - Case analysis                                    (Handouts)                       

Learning Outcomes:  Topic #5

  • Understanding NPO / NFPO and their Planning & Control requirements
  • Budgetary process in NPO / NFPO - (Program Planning / Zero-Based Budgeting)
  • Capital Structure and Investment for Non-Profit Organizations
  • Performance Metrics / Balanced Scorecard
  • Case assignment Submission due: Case # 3                    

Key Concepts:

  • Program Budgeting / Zero-base budgeting / Program Management
  • CM approach and Service Strategy in NPO
  • Restructuring financial information into program budgeting format
  • Building a Balanced Scorecard for performance evaluation and strategy execution

Topic # 6                     Strategy, Planning & Control Systems                          (Half a session)              

12                                Strategy Focused Organizations:                                                            

                                    Further look at Corporate Governance System

Learning Outcomes:  Topic # 6

  • Integration:  Organizational Strategy, Operations and Performance                                            
  • Understanding Business Drivers towards Financial & Non-Financial metrics
  • Designing and implementing a Balanced Scorecard / Current Best Practices

Key Concepts:

  • Linking Strategy and Operational execution - Strategy Maps- better alignment of resources
  • Designing and implementing planning & control systems in organizations
  • Integration: Elements of Economics / Operations /Marketing /IT /HR/Finance in

      designing an effective planning & control system

 

13                                 Final Examination (To be written in-Class, Proctored)