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2021/2022

Management Accounting

Code: 101201 ECTS Credits: 6
Degree Type Year Semester
2500894 Tourism OB 3 1
The proposed teaching and assessment methodology that appear in the guide may be subject to changes as a result of the restrictions to face-to-face class attendance imposed by the health authorities.

Contact

Name:
Maria Noguera Noguera
Email:
Maria.Noguera@uab.cat

Use of Languages

Principal working language:
catalan (cat)
Some groups entirely in English:
Yes
Some groups entirely in Catalan:
Yes
Some groups entirely in Spanish:
Yes

Teachers

Vera Butkouskaya

External teachers

Vera.Butkouskaya@uab.cat

Prerequisites

There are no prerequisites

Objectives and Contextualisation

 

  1. Provide basic understanding of the economic and financial context of cost accounting and management accounting, and to introduce students to its basic terminology and purposes.
  2. Help students discover and learn to use the relationship between costs, activity level and profit of a business.
  3. Describe the logic of cost accumulation for inventory valuation and profit measurement.
  4. Introduce students to the absorption and contribution approaches to income statement preparation.
  5. Make students aware of the conceptual intricacy of indirect costs and familiarize them with the main methods used in practice to allocate these costs to cost objects.
  6. Show how to elaborate standard costs
  7. Describe the difference between a static budget and a flexible budget
  8. Introduce students to variance analysis
  9. Introduce students to the concept of a master budget and help them understand its major benefits to an organization
  10. Describe major components of a master budget
  11. Show how to determine flexible-budget and sales-volume variances
  12. Show how to decompose flexible-budget variances into price and efficiency components
  13. Show how to decompose volume variances into market-size, market-share and sales-mix components
  14. Clarify how to differentiate relevant costs and revenues from irrelevant costs and revenues for decision making purposes

Competences

  • Apply the concepts related to tourism products and businesses (economy and finance, human resources, commercial policy, markets, operations and strategy) in the different parts of the sector.
  • Develop a capacity for independent learning.
  • Have a business vision, pinpoint the customer's needs and pre-empt possible changes in the environment.
  • Plan and manage activities on the basis of quality and sustainability.
  • Plan, organise and coordinate a work team, creating synergies and showing empathy.
  • Propose creative alternative solutions to problems arising in the field of tourism management, planning, businesses and products.
  • Take decisions in situations of uncertainty, taking into account potential consequences of these decisions in the short, medium and long term.
  • Use communication techniques at all levels.
  • Work in a team.

Learning Outcomes

  1. Apply budget control techniques for costs management, variance analysis and efficiency management.
  2. Apply the concepts of financial, accounting and resources management with regard to the tourism product and business, in the different parts of the sector.
  3. Develop a capacity for independent learning.
  4. Have a business vision, pinpoint the customer's needs and pre-empt possible changes in the environment.
  5. Identify a business's financial options in the short and long term.
  6. Identify the information provided by the financial statements and determine the economic and financial situation of a business.
  7. Issue technical accounting reports on a company's financial situation, suggesting solutions to problems and ways to improve.
  8. Plan and manage activities on the basis of quality and sustainability.
  9. Plan, organise and coordinate a work team, creating synergies and showing empathy.
  10. Take decisions in situations of uncertainty, taking into account potential consequences of these decisions in the short, medium and long term.
  11. Use communication techniques at all levels.
  12. Work in a team.

Content

TOPIC 1. Organizations, management and accounting

  1. Organizations, managers and accounting
  2. The role of accounting in organizations
  3. Differences between financial accounting and management accounting

TOPIC 2. Costs: Concept, Terminology and classification

  1. The concept of cost in accounting and economics
  2. Difference between costs and expenses
  3. Types of cost classification
  4. Cost of the main factors in service industries
  5. Average costs vs individualized costs
  6. Break-even point and safety margin

TOPIC 3. Costing of Products and Services

  1. Cost accumulation; actual costs
  2. Indirect cost pools and cost allocation
  3. Common cost allocation
  4. Job costing systems
  5. Process costing systems
  6. Others costing systems (Activity based costing, hybrid costing systems, …)

TOPIC 4. Income effects of alternative costing methods

  1. Variable Costing (DC)
  2. Absorption Costing (FCI, FCT)
  3. Alternative denominator concepts. The costs of unused capacity (IR)
  4. Reconciliation of results obtained with variable and absorption costing
  5. Implications for the accounting information systems.

TOPIC 5. Standard Cost: Concept, components and calculation

  1. Concept and usefulness of cost standards
  2. Setting cost standards
  3. Standards for total costs and unit costs 

TOPIC 6: Planning, Budgets and budgetary control

  1. Definition and role of budgets
  2. Flexible budget
  3. Steps in preparing an operating budget (sales budget, purchases budget, budgeting operating costs, cash budget…)

TOPIC 7. Budgetary Controland Variance Analysis

  1. Budgetary control as a management tool
  2. Variance analysis of sales budgets
  3. Decomposition of the flexible budget variance
  4. Cost-Volume-Profit analysis

TOPIC 8. Cost behavior and cost-volum-profit analysis

  1. Case study

Methodology

 

1.Methodology of the theoretical part of the course: Lecture-type classroom-based classes with explanation regarding the different agenda items. Theoretical classes will be audio-visual (power point presentations, video viewing to support the theory, etc.)

2. Methodology of the practical part of the course: Preparation and class-based presentation of case studies related to theoretical explanations. This exercises and cases are based on analysis of activities of the companies

3. Methodology of the out class learning part of the course (Campus Virtual): The Campus Virtual platform will be used to share information and alternative media in the classroom between students and teacher. Campus Virtual will contain the profile of the course, additional theoretical material in digital from, cases and exercises, links to websites, etc.

 

Annotation: Within the schedule set by the centre or degree programme, 15 minutes of one class will be reserved for students to evaluate their lecturers and their courses or modules through questionnaires.

Activities

Title Hours ECTS Learning Outcomes
Type: Directed      
Practical exercises and case solutions 30 1.2 1, 3, 7, 5, 11, 4, 12
Theoretical and practical classes 35 1.4 2, 6, 11, 10, 4
Type: Supervised      
Tutorials 25 1 2, 6, 11
Type: Autonomous      
Practical exercises and case solutions 20 0.8 2, 1, 3, 7, 6, 5, 8, 9, 10, 12
Preparation of exercises 10 0.4 2, 1, 3, 7, 6, 5, 8, 9, 10, 12
Study (test ans exam preparation) 15 0.6 2, 1, 3, 7, 6, 5, 8, 4

Assessment

This subject will be evaluated as follows:

Continuous evaluation:

1. Practical activities (30% of the final grade): Completion and presentation of class discussed exercises and cases,handed-in within the established deadline.

 2. Periodical controls: 2 (two) or more exams based on the theoretical materials. This will represent 70% of the final grade.

The exercises and cases will be collected by the instructors during the course, typically during the practical class sessions.

The partial exams can be theoretically oriented (conceptual questions) or have a more practical nature (calculation problems). Some of the exam questions will provide multi-choice answers and others will be open ended.

To approve the subject it is necessary to obtain a score above 5 (five) in average (practical activities and periodical control).

If students do not obtain a minimum grade of 5 through the continuous evaluations shown above, theycan take a final exam. The final exam takes place according to the calendar of the academic activities, which is reported in students’ guide or in the web of the school. The grade of the final exam will be the 100% of the final grade.

 Instead of continuous evaluations shown above, students have the option to directly take the final exam.The grade of the final exam will be the 100% of the final grade.

Students with a grade between 3.5 and 4.9 in the final exam will have the chance to retake the exam, according to the calendar of the academic activities, which is reported in students’ guide or in the web of the school. If these studentspass the retakeexam, their final grade will be 5.

 

Assessment Activities

Title Weighting Hours ECTS Learning Outcomes
Periodical Control 1 35% 2.5 0.1 2, 1, 7, 6, 5
Periodical Control 2 35% 2.5 0.1 2, 1, 7, 6, 5
Practical activities 30% 10 0.4 2, 1, 3, 7, 6, 5, 11, 8, 9, 10, 4, 12

Bibliography

Required textbook

Bhimani A, Horngren CT, Datar SM and Rajan M. (2019). Management and Cost Accounting, Edition 7th.; Pearson Editorial.ISBN: 9781292232669.

Horngren CT, Foster G, Datar S. Cost Accounting; a Managerial Emphasis. Pearson Education

Additional readings

Asociación española de contabilidad y administración de empresas. La contabilidad de gestión. Serie de principios de contabilidad de gestión. AECA. 

Anthony RN, Hawkins DF and Merchant KA. Accounting: Text and cases. McGraw-Hill.

Dobson, L.R & Hayes, D.K. Managerial Accounting for the Hospitality Industry, Ed. Wiley. E-Book:

https://www.wiley.com/en-us/Managerial+Accounting+for+the+Hospitality+Industry,+2nd+Edition-p-9781119299271

Drury, C. Management and Cost Accounting. Thomson Learning.

Drury, C. Management Accounting for Business Decisions. Thomson Learning.

Hilton, RW. Managerial Accounting. McGraw Hill.

 

Software

Specific software not required