Management Control

Recommended Prerequisites

Not applicable.

Teaching Methods

The course comprises theoretical exposure and discussion of practical cases. In the beginning lectures are essentially expositive with the presentation and discussion of illustrative case studies. To inspire critical reflection, given the scarcity of time, later lectures become more practical and participative with the presentation and discussion of essays prepared by students, as well as case studies built by them. Class support material to the curricular unit (with the exception of the recommended bibliography) is available on the respective page of Nónio.

Learning Outcomes

Based on the design of accounting information as a leading subsystem in decision making supporting and based on the structure of the organization, the final aim is to offer additional and updated training in the field of management control, deepening their scientific training and practice. This will enhance the relationship between management accounting, management control and strategic vision to help organizations gain a competitive advantage and create entity value.

Students will acquire the knowledge and skills to:

• Recognize the importance of management control to support decision making, in achieving the organization's strategy and create corporate value;

• Plan and build budgets, to support the decision making process, and monitor performance of the entity;

• Select, create and use management control tools adapted to the entity's organizational structure, the needs of management and assess the creation of corporate value, and analyze the entity strategic profitability.

Work Placement(s)

No

Syllabus

(1) The role of management accounting in organizations;

(2) Cost concepts and objectives;

(3) ABC (activity-based costing) and ABM (activity-based management);

(4) Pricing decisions (transfer pricing and external pricing), cost management and return modeling;

(5) Planning, budgeting and budgetary control - variance analysis;

(6) Global budget and accounting responsibility;

(7) Strategic management accounting - cost and level planning, target costing, life cycle costing and the importance of the experience curve;

(8) Management control systems and performance measures - ROI, EVA™ and other measures of value creation;

(9) Construction and analysis of reporting maps - Tableaux de bord, balanced scorecard, the learn method and strategic profitability analysis.

Head Lecturer(s)

José Manuel Bernardo Vaz Ferreira

Assessment Methods

Mixed regime
Presentation and discussion of theoretical group work: 10.0%
Presentation and discussion of practical group work: 30.0%
Exam: 60.0%

General scheme
Exam: 100.0%

Bibliography

- Anthony, R. N., (2007), Management Control Systems, 12.ª Ed. Homewood, III.: McGraw-Hill, Boston, USA.

- Garrison, R. H.; E. W. Noreen; P. C. Brewer (2004), Managerial Accounting: Concepts for Planning, Control, Decision making, 11th Ed., Irwin, Burr Ridge, Illinois, USA.

- Horngren, C. T.; S. M. Datar; G. Foster (2008), Cost accounting: a managerial emphasis, 13th Ed., Prentice Hall International Editions, Upper Saddle River, Nova Jersey, USA.

- Jordan, H., J. Carvalho das Neves e J. A. Rodrigues (2011), O controlo de gestão: ao serviço da estratégia e dos gestores, 9ª ed., Áreas Editora, Lisboa, Portugal.

- Martins, A.; I. Cruz ; M. Augusto; P. Pereira da Silva; P. G. Gonçalves (20011), Manual de Gestão Financeira Empresarial, 2ª ed., Coimbra Editora, Coimbra, Portugal.