Advanced Management Accounting
Management control systems play an important role in the success of organisations. It is essential that organisations maintain strategic and management control by having the necessary systems in place to influence the behaviour of employees towards the achievement of the organisation’s objectives. The design of such systems, however, is a challenging task; one that requires the consideration of the interplay and interconnections between the various components that make up the package of systems, and the effects of situational contingencies. This module will provide students with valuable insights, aided by case studies, on the design of management control systems and the unintended consequences arising from the use of the different types of controls.
The principles, concepts, tools and techniques taught in this module are applicable worldwide due to their universal nature.
This module also offers students an online forum where students may initiate discussions with peers and the module convenor. Students will also have access to recordings of the lectures.
The concept and accounting for sustainable development will be embedded within the various aspects of management control systems covered within this module.
All the resources for this module are available on the ELE (Exeter Learning Environment).
Students are encouraged to participate in global business competitions, specifically, the CIMA (Chartered Institute of Management Accountants) Global Business Challenge.
This module is accredited by professional accounting bodies.
Students will acquire transferable skills valued by prospective employers such as numerical, decision-making, analytical, communication, presentation and teamwork skills.
Students will also have the opportunity to meet sponsors and representatives from various companies should they participate in business competitions.
Full module specification
|Module title:||Advanced Management Accounting|
|Duration of module:||
Duration (weeks) - term 1: |
This module aims to provide students with an appreciation and understanding of the complexities involved in the design of management control systems. This is achieved by firstly introducing students to the need for management control and the causes of management control problems. Students will then be familiarised with the different types of controls and their characteristics, before being presented with the criteria for the evaluation of the design of management control systems. The interplay and interconnections between the components within the package of controls will be highlighted and the consideration of unintended consequences brought to the fore. Students will be equipped with knowledge of contemporary performance measurement and management frameworks used within for-profit and not-for-profit organisations. The effects of situational contingencies on the design of management control systems will be discussed.
Case studies will be used to facilitate the effective delivery of the module, providing students with interesting and relevant insights of how the whole system works in the real world.
ILO: Module-specific skills
- 1. discuss the need for management and strategic control
- 2. explain the causes of management control problems
- 3. identify and describe the various forms of controls
- 4. evaluate the design of management control systems
- 5. explain the different types of incentives and evaluate the design of incentive systems
- 6. discuss the use of financial performance measures and their effects
- 7. compute and apply the various financial performance measures used by divisionalised organisations
- 8. propose remedies to the myopia problem and solutions to account for uncontrollable factors
- 9. explain the need for transfer pricing; and explain, apply and evaluate the various methods used for the setting of transfer prices
- 10. explain, apply and evaluate the various contemporary performance measurement and management frameworks
- 11. discuss performance measurement and management in not-for-profit organisations
- 12. discuss situational influences such as the effects of environmental uncertainty, organisational strategy and multinationality on management control systems
- 13. discuss alternative management accounting research
ILO: Discipline-specific skills
- 14. identify the information needs for the strategic planning and control process and demonstrate the ability to construct an effective management control system
- 15. apply the various techniques and frameworks to measure, analyse and manage the performance of organisations
- 16. appreciate the situational contingencies surrounding the design of management control systems, and the political and social context of such systems
ILO: Personal and key skills
- 17. demonstrate the ability to identify and analyse relevant information contained in case studies
- 18. demonstrate the ability to propose solutions that make business sense
- 19. demonstrate presentation and written communication skills
- 20. demonstrate an ability to undertake group work, independent learning and effective time management.
Learning activities and teaching methods (given in hours of study time)
|Scheduled Learning and Teaching Activities||Guided independent study||Placement / study abroad|
Details of learning activities and teaching methods
|Category||Hours of study time||Description|
|Scheduled Learning & Teaching Activities||22||Lectures|
|Scheduled Learning & Teaching Activities||9||Tutorials|
|Scheduled Learning & Teaching Activities||9||Seminars|
|Guided Independent Study||110||Reading, research and preparation for tutorials|
|Form of assessment||Size of the assessment (eg length / duration)||ILOs assessed||Feedback method|
|Weekly tutorial problems for discussion||Four to five hours a week (inclusive of preparation time)||1-20||Group presentation, tutor comments, and suggested solutions|
Summative assessment (% of credit)
|Coursework||Written exams||Practical exams|
Details of summative assessment
|Form of assessment||% of credit||Size of the assessment (eg length / duration)||ILOs assessed||Feedback method|
|Group Presentation||10||25 minutes||1-8, 14-20||Mark awarded and written feedback|
|Written Group Assignment||10||3,000 words||1-8, 14-20||Mark awarded and written feedback|
|Written Examination||80||2 hours, 15 minutes||1-20||Mark awarded, suggested solution on ELE|
Details of re-assessment (where required by referral or deferral)
|Original form of assessment||Form of re-assessment||ILOs re-assessed||Timescale for re-assessment|
|Gropu presentation (10%), Written Group Assignment (10%), and Written Examination (80%)||2 hours, 15 minutes Written Examination (100%)||1-20||August Examination Period|
Where you have been referred/deferred for the exam, you will have the opportunity to take a second exam in the August re-assessment period. For referral, this will constitute 100% of the module (15 credits).
Management control systems
• Management control systems design 1
• Management control systems design 2
Financial results control systems
• Incentive systems
Performance measurement issues and their effects
• Financial performance measures and their effects
• Remedies to the myopia problem and the presence of uncontrollable factors
• Transfer pricing in divisionalised companies
• Alternative management accounting research
Performance measurement and management and situational influences
• Performance measurement and management frameworks
• Performance measurement and management in not-for-profit organisations
• Situational influences on management control systems
Indicative learning resources - Basic reading
Merchant, K. A. & Van der Stede, W. A. (2012), Management Control Systems: Performance Measurement, Evaluation and Incentives, 3rd edition, England: Pearson
Burns, J., Quinn, M., Warren, L. & Oliveira, J. (2013), Management Accounting, UK: McGraw-Hill
Drury, C. (2012), Management and Cost Accounting, 8th edition, UK: Cengage
Module has an active ELE page?
Indicative learning resources - Web based and electronic resources
ELE – http://vle.exeter.ac.uk/course/view.php?id=4682
Lecture notes, tutorial questions and solutions, and relevant articles
Indicative learning resources - Other resources
The majority of additional readings will be academic journal articles – where possible, there are direct links to these articles via the module reading list which is located on the ELE site.
Last revision date