Course Outline

ACCT-3321 Strategic Management Accounting and Control SystemsWinter 2009/10Instructor:Saqib Ali

Office hours:1 hour before every class session

Email:saqib@lums.edu.pk/saqib.ali@pk.pwc.com

IntroductionThe syllabus is arranged in two parts. The first part is designed to examine theories and practices with respect to the strategic dimensions of accounting. The course provides students with the opportunity to develop analytical skills aimed at improving their use of accounting information for strategic decision-making and performance management. The design and implementation of strategic accounting performance reporting systems are also addressed with particular reference to the impact on strategy, and the nature and limitations of traditional accounting performance reporting systems.In the second part we study Management Control Systems framework which considers the choice of performance indicators, targets, rewards and learning relative to corporate strategy. Specific topics such as EVA, balanced score card, transfer pricing, allocation and strategic investment decisions enable the practical and theoretical dimensions to be considered simultaneously. The course aims to improve understanding of MCS and design choices available given a particular organizational structure and strategy.Text Book:

Management Accounting, Atkinson, Kaplan and Young. 4th Edition.Management Control Systems, Anthony and Govindrajan. 11th Edition.There would also be hand-outs distributed during the sessions which would synthesize and explain the topics covered. These would also be examinable.COURSE SCHEDULESession No.Particulars

1Intro to Management Accounting and ControlReview of Traditional Cost Management Systems

2Strategic Cost Allocation Systems (ABC)

3Strategic Cost Allocation Systems (ABC) Case: Siemens Electric Motor Works

4Customer Profitability Analysis Case: Kanthal

5Decision Making

6Cost information for Pricing and Product Planning

7Case: Baldwin Bicycle

8Value Chain and Strategic Cost Management

9Target Costing Case: Nissan Motor

10Life Cycle Costing Case: Osram

11The Nature of Management Control Systems and Control Environment

12Responsibility Centres: Revenue and Expense Centers

13Profit Centres and Transfer Pricing

14Mid Term

15Case: Shuman Automobile

16Case: Birch paper Co

17Measuring & Controlling Assets Employed ROI and EVA

18Case: Engager Industries

19Budget as a Control Tool

20Case: Empire Glass Co

21Performance Measurement

22Balanced Scorecard

23Case: Citibank

24Management Compensation: EVA

25Case: Vyaderm Pharma

26Control for Differentiated Strategies

27Risk Management and Internal Control

28Managing and Controlling Strategic Risk

Grading

%Class Participation

20Quizzes

10Mid Term

30

Final

40

Total

100Prerequisite Successful completion of Principles of Management Accounting

Estimated Preparation Time for the Class:

Students are expected to spend at least 2-3 hours preparing for each class.

Attendance Policy:Attendance is strongly recommended since some of the material covered in the class is not included in the text. You will be allowed to miss two classes without impact on your grade, provided that you informed me in advance. More than two missed classes will negatively impact your class participation grade, regardless of the reason. More than five missed classes will result in an F grade.