The management accounting or controller role has recently undergone drastic changes. The former “bean counter” has made room for the internal business consultant, acting as a translator of financial information into meaningful business scenarios for managerial decision making at senior and/or divisional or business-unit level.
The context of accounting has become one of flexible, decentralized organizations with a strong strategic and service orientation. The accounting toolkit itself has experienced similar changes, and now includes tools and approaches that explicitly incorporate competitive strategy arguments while adopting multiple levels of analysis. The active use of technology for analytical and reporting purposes has equally increased in importance, and is embedded in the various topical elements of this course.
This course addresses the knowledge and skills as necessary to fulfil a Controller or CFO role in organizations, and is closely related to the course Advanced Management Accounting (P2) of the CIMA professional qualification as Chartered Global Management Accounting™.
Topics covered include:
- cost planning and analysis for competitive advantage;
- control and performance management of responsibility centres;
- long-term decision-making tools and analytics;
- management control;
- accounting information systems and business analytics.
Learning outcome knowledge
After completing the course, students should have knowledge about:
- Performance measurement and management; including financial and non-financial performance measurement, performance report generation and integration with responsibility centers, budget control and its behavioral consequences, alternatives to budgeting as a control mechanism, and transfer pricing.
- Project appraisal and pricing decisions including cash flow prognosis and identification of cash drivers, the time value of money and capital budgeting techniques, and pricing techniques and strategies for various competitive situations and business models.
- Cost planning and profitability analysis including activity-based costing & management tools and techniques total quality management (TQM) techniques, target costing, life-cycle costing, value analysis, and learning curve-based cost prediction.
- Management control & risk including financial sensitivity analysis under conditions of risk and uncertainty, business risk management, and analytical systems for information acquisition and use.
- Class participation: 30%
- Presentation and discussion: 30%
- Written exam: 40%