Management AccountingLaajuus (5 cr)
Code: R300CC85
Credits
5 op
Teaching language
- English
Objective
Having completed this study unit
- You know the role of management accounting in an organization and as part of the decision-making process.
- You are familiar with the basics cost behaviour and basic cost concepts, cost drivers, cost objects and different costing options.
- You can apply different management accounting methods to assess profitability and provide information for decision-making with assistance.
- You are familiar with working capital management.
- You know the reason for budgeting and understand how the budgeting process works. You are familiar with activity-based budgeting (ABB).
- You know the Activity-Based Costing (ABC) and the principles of strategic cost management.
Competences:
Content
- Management Accounting’s role in organization and in the decision-making process
- Costing: basic cost concepts, cost behavior, cost drivers and cost object
- How to manage working capital
- Profitability planning and decision making
- Budgeting and budgeting process – Master and Functional / functional budgets and master budgets.
- Activity-Based Budgeting (ABB), - Activity-Based Costing (ABC)
- Strategic Cost Management
Assessment criteria, satisfactory (1)
Level 1
Management Accounting
You know the role of management accounting in the organization and as part of the decision-making process.
You are familiar with the basics of cost behavior, cost concepts and different costing options, and can apply these to real-world situation with assistance.
You can apply different management accounting methods to assess profitability and provide information for decision-making.
You are familiar with the concept of working capital management and are able to describe its meaning for an organization.
You know the reason for budgeting and understand the budgeting process.
You are able to create a simple budget and are familiar with activity-based budgeting (ABB).
You know activity-based costing (ABC) and are able to use it in calculating costs.
You know the principles of strategic cost management.
Level 2
Management Accounting
You understand the role of management accounting in the organization and its importance in the decision-making process.
You know the basics of cost behavior, cost concepts, and different costing options, and can apply these to real-world situations.
You can use different management accounting methods to assess profitability and provide information for decision-making.
You know the concept of working capital management and you are able to describe its importance to an organization.
You recognize the purpose of budgeting and understand the budgeting process, and you are able to create and evaluate a simple budget. You know what activity-based budgeting is and how it’s different from typical budgeting.
You can apply activity-based costing (ABC) to accurately calculate costs.
You are able to use some of the strategic cost management methods when calculating for product costs.
Assessment criteria, good (3)
Level 3
Management Accounting
You know the role of management accounting in the organization and its importance in the decision-making process.
You can explain how management accounting impacts strategic decisions and supports business objectives.
You know cost behavior, cost concepts, and different costing options, and you are able to apply these concepts to analyze cost structures in different business contexts.
You understand the different management accounting methods used to assess profitability, and you can use these methods to generate insights that support decision-making.
You know the concept of working capital management and can explain its importance to an organization.
You also recognize the need for budgeting and comprehend the budgeting process in detail, allowing you to confidently create and manage a budget.
You understand how to apply activity-based costing (ABC) to accurately calculate costs and make informed decisions.
You understand the difference of activity-based budgeting and typical budgeting.
You are able to apply suitable strategic cost management methods to guide business decisions, improve organizational efficiency, and use its methods to calculate product costs.
Level 4
Management Accounting
You understand the role of management accounting in the organization and its importance in the decision-making process. You can explain and evaluate how management accounting impacts strategic decisions and supports business objectives.
You have an overall understanding of costs and costing, and you are able to utilize these concepts to analyze cost structures in different business context.
You are able to evaluate the effectiveness of different management accounting methods used to assess profitability, making informed decisions that align with organizational objectives.
You know the concept of working capital management and you are able to explain the key components of working capital and how they interact to optimize cash flow.
You recognize the need for budgeting and comprehend the budgeting process in detail, enabling you to create, adjust, and manage a simple budget based on real-time data and financial trends.
You understand how to apply activity-based costing (ABC) to calculate costs accurately and assess the impact of different cost drivers.
You can utilize suitable strategic cost management methods to assess their impact on business performance and use that evaluation to recommend improvements that align with long-term business goals.
Assessment criteria, excellent (5)
Level 5
Management Accounting
You have an overall understanding of management accounting and its role in organizations decision-making process.
You have an overall understanding of costs and costing, and you are able to utilize these concepts to analyze cost structures in different business context.
You are able to evaluate the effectiveness of different management accounting methods used to assess profitability, making informed decisions that align with organizational objectives.
You know the concept of working capital management and you can recommend improvements or adjustments to working capital policies to enhance cash flow management and reduce financial risk.
You recognize the need for budgeting and comprehend the budgeting process in detail, enabling you to create, adjust, and manage a simple budget based on real-time data and financial trends.
You have a clear understanding of activity-based costing (ABC) and how to apply it to accurately calculate costs, as well as analyze the impact of various cost drivers on those calculations.
You can analyze strategic cost management methods to assess their impact on business performance, and use that evaluation to recommend improvements that align with long-term business goals.