Course description

Strategic Management Accounting


Strategic management accounting focuses on defining and describing important causal relationships between factors that contribute to creating long-term values for the firm. By designing controlling systems that help us to evaluate the company’s ability to implement its overall strategies and plans, management theory, strategic planning and accounting together form a holistic framework for long-term decision-making.
The course focuses on theoretical models, various tools and techniques to support the decision-making process for management with real-life cases and exercises.

Course content

Part one - Strategic Performance Management: Management control challenges, The Balanced Scorecard, definifing well-functioning KPIs, strategy mapping and measuring

Part two - Financial planning and budgeting: Budgets as a tool for financial simulation, cash flow forecasting, balance sheet budgeting.

Part three Understanding cost behavior and The Value Chain: Cost driver, primary and supporting activities, The Positioning School vs. The Resource Based View

Part four - Cost allocation and more advance costing models: Activity Based Costing, finding the costs for excess capacity

Part five - Business Process Analyses and The Lean Philosophy - Improving process efficiency with Lean concepts

Learning outcome knowledge

After completed course students shall have acquired knowledge about:

  • The link between the various activities carried out by an organization and its consumption of costly resources
  • How the design of a value chain model can be used as a tool to analyze the various activities’ contribution to value creation as well as how multi-dimensional process analyses can be used to improve process efficiency.
  • Allocation of costs to various cost objects by using traditional methods as well as activity based costing techniques.
  • The need to establish long-term goals and to determine critical success factors and Key Performance Indicators, as well as designing strategy maps.
  • How strategic decisions may tie up the organizational resources on a long term and the link between strategies, plans and budgets.
  • How the organization can measure the implementation of its current strategy plan by the use of Balanced Scorecards.
  • How traditional budgeting models can be improved to better facilitate different control purposes.
  • How the lean-philosophy’s continuous focus on reducing organizational waste can contribute to long-term value creation.
  • Challenges of achieving success by efficiently implementing processes that require actual change in organizational behavior.


Exam organisation

  • Written exam: 100%