ACCTING 3503 - Strategic Management Accounting

North Terrace Campus - Semester 2 - 2019

This course builds on material covered in Management Accounting (ACCTING 2500) and examines many of the current issues in management accounting. One of the primary objectives of this course is to develop students? analytical and problem-solving skills by using several case studies. It is assumed in this course that students have an appreciation and good understanding of the basic cost accounting concepts and techniques. Since the early 1990s, management accounting has been in the process of continual change. While some firms still use traditional methods of management accounting such as costing, performance measurement and cost analysis, an increasing number of firms are using innovative management accounting techniques such as activity-based costing, strategically oriented performance measurement systems and strategic cost analysis. This course deals with many of the present-day management accounting techniques. Moreover, it also considers the skills and competencies that management accountants should develop in order to take advantage of the many opportunities offered by the new management accounting techniques.

  • General Course Information
    Course Details
    Course Code ACCTING 3503
    Course Strategic Management Accounting
    Coordinating Unit Business School
    Term Semester 2
    Level Undergraduate
    Location/s North Terrace Campus
    Units 3
    Contact Up to 3 hours per week
    Available for Study Abroad and Exchange Y
    Prerequisites ACCTING 2500
    Course Description This course builds on material covered in Management Accounting (ACCTING 2500) and examines many of the current issues in management accounting. One of the primary objectives of this course is to develop students? analytical and problem-solving skills by using several case studies. It is assumed in this course that students have an appreciation and good understanding of the basic cost accounting concepts and techniques.

    Since the early 1990s, management accounting has been in the process of continual change. While some firms still use traditional methods of management accounting such as costing, performance measurement and cost analysis, an increasing number of firms are using innovative management accounting techniques such as activity-based costing, strategically oriented performance measurement systems and strategic cost analysis.

    This course deals with many of the present-day management accounting techniques. Moreover, it also considers the skills and competencies that management accountants should develop in order to take advantage of the many opportunities offered by the new management accounting techniques.
    Course Staff

    Course Coordinator: Dr Tony McMurtrie


    Course Timetable

    The full timetable of all activities for this course can be accessed from Course Planner.

    The lecture program appears below. Unless otherwise indicated all the readings come from the prescried text book



    Week       

    Topic

    Reading

     

    1

    Introduction to SMA

    Revision of basic cost terms and procedures

    Chap 1 & 2

     

    2

    CVP & Relevant Costs revision and relevance

    Chap 3 & 4

     

    3

    Standard Costing

    Add on: Chap 18 Drury Mgt and Cost Acct, on line

     

    4

    Pricing and Profitability

    Chap 5

     

    5

    Management Control systems

    Chap 10 and addition 0n line

     

    6

    Mid Semester Test

    Will cover weeks 1 - 4

     

    7

    Divisional Financial Performance Measures

    Chap 12

     

    8

    Transfer Pricing

    Chap 13

     

     

    Mid Semester Break

     

    9

    Strategic Performance Management

    Chap 14

     

    10

    Strategic Cost Management

    Chap 15

     

    11

    Future Challenges

    Chap 16

     

    12

    Test and Exam Prep

     

     


     


     







  • Learning Outcomes
    Course Learning Outcomes

    On successful completion of this course, students will be able to:

    1. Explain how management accounting information is used in strategic decision making.

    2. Illustrate the process of strategy formulation, communication, implementation and control within an organisation.

    3. Explain how to integrate conventional and contemporary management accounting techniques into a strategic management accounting framework.

    4. Solve practical and applied problems by using research papers and case study analysis.
    University Graduate Attributes

    This course will provide students with an opportunity to develop the Graduate Attribute(s) specified below:

    University Graduate Attribute Course Learning Outcome(s)
    Deep discipline knowledge
    • informed and infused by cutting edge research, scaffolded throughout their program of studies
    • acquired from personal interaction with research active educators, from year 1
    • accredited or validated against national or international standards (for relevant programs)
    1,2,3,4
    Critical thinking and problem solving
    • steeped in research methods and rigor
    • based on empirical evidence and the scientific approach to knowledge development
    • demonstrated through appropriate and relevant assessment
    3,4
    Teamwork and communication skills
    • developed from, with, and via the SGDE
    • honed through assessment and practice throughout the program of studies
    • encouraged and valued in all aspects of learning
    1,2,3,4
    Career and leadership readiness
    • technology savvy
    • professional and, where relevant, fully accredited
    • forward thinking and well informed
    • tested and validated by work based experiences
    1,2,3,4
    Intercultural and ethical competency
    • adept at operating in other cultures
    • comfortable with different nationalities and social contexts
    • Able to determine and contribute to desirable social outcomes
    • demonstrated by study abroad or with an understanding of indigenous knowledges
    1,4
    Self-awareness and emotional intelligence
    • a capacity for self-reflection and a willingness to engage in self-appraisal
    • open to objective and constructive feedback from supervisors and peers
    • able to negotiate difficult social situations, defuse conflict and engage positively in purposeful debate
    4
  • Learning Resources
    Required Resources
    Textbook


    Drury, C. 2018, Management Accounting For Business, 7th Edn., Andover UK. https://cengage.com.au/product/title/management-accounting-for-business/isbn/9781473749115


    Note:
    While it is the same author this is a different book from the Cost and Management 2 text

    This text is supplemented by journal articles and extracts from other texts.
    Recommended Resources
    Additional Textbooks

    Horngren et al. 2014. Cost Accounting A Managerial Emphasis, 2nd Edn (Aus).,Pearson Education.

    Langfield-Smith et al. 2015. Management Accounting; Information for Creating and Managing Value, 7th Edn.,McGraw Hill Education.


    Journal Articles


    Banker, R., G. Potter, and D. Srinivasan. 2000. An empirical investigation of an incentive plan that includes non-financial performance measures. The Accounting Review 75 (1): 65-92.

    Baumann, S O.M. Lehner & H. Losbichler (2015) A push-and-pull factor model for environmental management accounting: a contingency perspective, Journal of Sustainable Finance & Investment, 5:3, 155-177.

    Dekker, H.C. 2003. Value chain analysis in interfirm relationships: a field study. Management Accounting Research 14: 1-23.

    Elenathan, D., T.W., Lin, and M.S. Young. 1996. Benchmarking and management accounting. Journal of Management Accounting Research 8: 37-54.

    Foster, G., M. Gupta, and L. Sjoblom. 1996. Customer profitability analysis: challenges and new directions. Journal of Cost Management (Spring): 5-17.

    Govindarajan, V., and A.K. Gupta. 1985. Linking control systems to business unit strategy: impact on performance. Accounting, Organizations and Society 10 (1): 51-66.

    Guilding, C. 1999. Competitor-focused accounting: an exploratory note. Accounting, Organizations and Society: 24: 583-595.

    Hope, J., and R. Fraser. 2003. Who needs budgets? Harvard Business Review (February): 108-115.

    Hoque, Z. 2000. Just-in-Time production, automation, cost allocation practices and importance of cost information: an empirical investigation in New Zealand based manufacturing organisations. British Accounting Review 32 (2): 133-159.

    Hoque, Z., and M. Alam. 1999. TQM adoption, institutionalism and changes in management accounting systems: a case study. Accounting and Business Research 29 (3): 199-210.

    Hoque, Z., and W. James. 2000. Linking balanced scorecard with size and market factors: impact on organizational performance. Journal of Management Accounting Research 12: 1-17.

    Ittner, C.D., and D.F. Larcker. 2002. Determinants of performance measure choices in worker incentive plans. Journal of Labor Economics, 2002 20 (2, pt. 2): S58-S90.

    Ittner, C.D., D.F. Larcker, and T. Randall. 1997. The activity-based cost hierarchy, production policies and firm profitability. Journal
    of Management Accounting Research 9: 143-162.

    Libby, T., and R.M. Lindsay. 2010. Beyond budgeting or budgeting reconsidered? A survey of North-American budgeting practice. Management Accounting Research 21: 56-75.

    Maltz, A.C., A.J. Shenhar, and R.R. Reilly. 2003. Beyond the balanced scorecard: refining the search for organizational success measures. Long Range Planning 36: 187–204.

    Perera, S., G. Harrison, and M. Poole. 1997. Customer-focused manufacturing strategy and the use of operations-based non-financial performance measures: a research note. Accounting, Organizations and Society 22 (6): 557-572.

    Shank, J.K., and V. Govindarajan. 1992. Strategic cost management: the value chain perspective, Journal of Management Accounting Research (4) 179-197.


    We note that the reading material (especially the journal articles) may be added/deleted during the course of the semester due to new developments in the field. Students will be alerted to any changes to the reading material in a timely manner.

  • Learning & Teaching Activities
    Learning & Teaching Modes
    The University expects full-time students (i.e. those taking 12 units per semester) to allocate a total of at least 48 hours per week to their studies. Students in this course are expected to be present at all seminars each week throughout the semester.

    Lecture topics and related problem questions will be discussed weekly in each seminar.

    The communication, interaction and problem-solving skills developed by students in seminars by regularly and actively participating in discussions on case studies and/or problem questions are considered to be most important by the Business School, and are also highly regarded by employers and professional accounting bodies.

    The Lecturer and Teaching Assistant are available for student consultation. We will notify students of the appropriate consultation times in due course. Moreover, please check your student email as course-related announcements are normally communicated via email.
    Workload

    No information currently available.

    Learning Activities Summary

    No information currently available.

  • Assessment

    The University's policy on Assessment for Coursework Programs is based on the following four principles:

    1. Assessment must encourage and reinforce learning.
    2. Assessment must enable robust and fair judgements about student performance.
    3. Assessment practices must be fair and equitable to students and give them the opportunity to demonstrate what they have learned.
    4. Assessment must maintain academic standards.

    Assessment Summary


    Assessment items

    Due Date

    Weight (%)

    Class test 1

    Week 6

    25

    Individual Assignment 1

    15 Sep

    20

    Individual Assignment 2

    1 Nov

    20

    Class participation

    Various

    10

    End of semester test

    Week 12

    25





    NOTES ON ASSESSMENT:

    There will be a mid-semester test in week 6. The test will be paper-based (MCQ). It will cover the first four weeks of the course (up to and including chapters 1-6 and chapters 15 & 17)

    The final test will be in week 12. There will be MCQ questions and some technical written responses as well It will cover the topics presented in weeks 5 -11.

    During the semester all students will be asked to contribute to the discussion relating to some of the cases discussed in the tutorial. The class participation mark will be a reflection of the contribution they make to these discussions.

    The individual assignments will be made available on the Course MyUni page later

     

    Assessment Detail

    No information currently available.

    Submission

    No information currently available.

    Course Grading

    Grades for your performance in this course will be awarded in accordance with the following scheme:

    M10 (Coursework Mark Scheme)
    Grade Mark Description
    FNS   Fail No Submission
    F 1-49 Fail
    P 50-64 Pass
    C 65-74 Credit
    D 75-84 Distinction
    HD 85-100 High Distinction
    CN   Continuing
    NFE   No Formal Examination
    RP   Result Pending

    Further details of the grades/results can be obtained from Examinations.

    Grade Descriptors are available which provide a general guide to the standard of work that is expected at each grade level. More information at Assessment for Coursework Programs.

    Final results for this course will be made available through Access Adelaide.

  • Student Feedback

    The University places a high priority on approaches to learning and teaching that enhance the student experience. Feedback is sought from students in a variety of ways including on-going engagement with staff, the use of online discussion boards and the use of Student Experience of Learning and Teaching (SELT) surveys as well as GOS surveys and Program reviews.

    SELTs are an important source of information to inform individual teaching practice, decisions about teaching duties, and course and program curriculum design. They enable the University to assess how effectively its learning environments and teaching practices facilitate student engagement and learning outcomes. Under the current SELT Policy (http://www.adelaide.edu.au/policies/101/) course SELTs are mandated and must be conducted at the conclusion of each term/semester/trimester for every course offering. Feedback on issues raised through course SELT surveys is made available to enrolled students through various resources (e.g. MyUni). In addition aggregated course SELT data is available.

  • Student Support
  • Policies & Guidelines
  • Fraud Awareness

    Students are reminded that in order to maintain the academic integrity of all programs and courses, the university has a zero-tolerance approach to students offering money or significant value goods or services to any staff member who is involved in their teaching or assessment. Students offering lecturers or tutors or professional staff anything more than a small token of appreciation is totally unacceptable, in any circumstances. Staff members are obliged to report all such incidents to their supervisor/manager, who will refer them for action under the university's student’s disciplinary procedures.

The University of Adelaide is committed to regular reviews of the courses and programs it offers to students. The University of Adelaide therefore reserves the right to discontinue or vary programs and courses without notice. Please read the important information contained in the disclaimer.