Planned Teaching and Learning Activities

Semester: SEPTEMBER 2013 JANUARY 2014

COURSE CODE
PROGRAM
CREDIT HOURS
CONTACT HOURS
STATUS

: MANAGEMENT ACCOUNTING & PERFORAMNCE EVALUATION / MAF 635

: BACHELOR OF ACCOUNTING (HONS)
:3
:3
: CORE

LECTURER
E-MAIL
TEL. NO
ROOM

: ADELINA EBUN
: adelinae@sabah.uitm.edu.my
: 088-325116
: Ujana Sarjana, Level 4, No. 89

Course Synopsis
The course discusses evolution of management accounting and different techniques of strategic management accounting in contemporary
business environment. The topics covered include performance evaluation, management control, motivational, behavioral and ethical issues as
well as recent developments in management accounting.

Course Objectives
The course aims to develop analytical ability in using management accounting information for strategic planning, performance evaluation and
management control, incorporating motivational, behavioral and ethical considerations. In addition, the course contents are tailored in such as way
that students are able to understand the contemporary role of management accounting in modern business environment.
COURSE OUTCOMES
At the end of the course, students are expected to be able to:
CO1
CO2
CO3
CO4
CO5
CO6

Able to describe the evolution of management accounting in a business environment

Able to apply contemporary strategic management accounting techniques for planning, control and decision making purposes
Able to evaluate business performance using appropriate performance measures
Able to apply transfer pricing and assess its impact on decentralized organizations
Able to incorporate motivational, behavioral and ethical issues in strategic planning, control and decision making
Able to understand current issues in Management Accounting

PROGRAM OUTCOMES
At the end of the course, students are expected to be able to:
PO1

Able to apply knowledge and understanding of accounting and other business applications in an organization

PO2

Able to prepare financial statements in accordance with approved accounting standards and report socio-economic events which affect
organizations

PO3
PO4

Able to prepare tax return, provide tax consultation and perform audits for business entities using appropriate technologies
Able to use and evaluate information technologies and systems for the attainment of organizational objectives

PO5

Able to provide, interpret, evaluate and critically analyze financial and non-financial information in assisting management to make
organizational decisions.

PO6

Able to work effectively, both written and verbal

PO7
PO8

Able to work collaboratively in a team to serve stakeholders interests

Able to demonstrate behavior consistent with professional ethics and social responsibility

PO9

Able to engage information management, demonstrate a commitment to life-long learning and professional development

PO10

Able to demonstrate entrepreneurial skills

PO11

Able to demonstrate leadership skills

Week
1

Date

Topic
Introduction

Evolution of
Management
Accounting

Duration
(Hours)
2

Details

Introduction to Management
Accounting and Performance
Evaluation course

Ice breaking, organize grouping and

topic for presentation

Evolution of management
accounting using IFAC Model
(International Federation of
Accountants)

2-4

Strategic
Management
Accounting

14

Colin Drury Chapter 1

Abdel-Kader,
M
Luther, R (2006)

Isa, C.R., Keong, T. Y

(2008)
Drury 7th Edition, Ch 21
& 22

&

Relevance Lost - relevance of

traditional Management Accounting
techniques in the modern business
environment

Contemporary strategic management

accounting (SMA) techniques:

Teaching & Learning

materials
Syllabus contents and
Lesson plan

Just- in-Time and back flush

accounting
Total Quality Management (TQM),

Assessment

57

Performance
Management
System

including quality cost

Target Costing
Business process re-engineering vs
continuous improvement
Customer Profitability Analysis
Activity Based Management
Life Cycle costing
Kaizen Costing
Electronic commerce, MRP, ERP,
CAD/CAM Robotics
Pareto Analysis
Environmental Management
Accounting

Characteristics of a well-designed
management accounting and control system

Responsibility Accounting
Responsibility centers
Centralization and decentralization
Motivation for decentralization
Financial performance measures for profit
oriented organizations:

Langfield et al (2009)
Ch 13 & 14
Drury (2008) Ch 19

Objectives
Financial measure of performance
evaluation
o Return on Investment (ROI)
o Residual Income (RI)
o Economic Value Added
(EVA)

Performance evaluation for service

organizations
Performance evaluation model
Performance evaluation for Non-profit
Organizations

Value for Money (5Es)

Contemporary aspects of performance

evaluation
Globalization and organizational
development
Organizational critical success
factors

Non-financial measures
Benchmarking
Balance Scorecard

Mid Term Break

9

Management
Control for
Decentralized
Organization

Transfer Pricing
Objectives for transfer pricing
Methods of transfer pricing :
- Cost based
- Market based
- Negotiated

Transfer price in imperfect

markets and where no market
exists for intermediary product
Problems of setting transfer
prices and divisional conflicts
Transfer pricing to achieve goal
congruence
Calculation of profit for
divisions and overall company
profits

Drury (2008) Ch 20
Langfield et al (2009)
Ch 12

Motivational,
Behavioral and
Ethical Issues
in Performance
Evaluation

Dual pricing
International transfer pricing

Link between performance

evaluation and organization reward
system

Langfield et al (2009)
Ch 13

Langfield et al (2009)
Ch 17

Ethical issues in performance

evaluation

Motivational Theories:
- Expectancy Theory
- Maslow Theory of needs
- Hertzberg Theory
- Equity Theory
Recent
Development

Carrot and stick theory

Mc Clellands theory of
needs
Theory X, Theory Y and
Theory Z
Goal Setting Theory

Sustainability and management

accounting

in Management
Accounting

Environmental Management
Accounting (EMA)
Sustainability and EMA
Environmental costs
Improving supply chain
management through measuring
environmental and social impacts
Sustainability and performance
management
Strategic performance
measurement system and
sustainability
Climate change and management
accounting
Revision Week

COURSE
ASSESSMENT/
EVALUATION

Common test
*Group project on SMA (presentation + report)
* Presentation and Quiz

15%
15%
10%

Final comprehensive examination

Total

60%
100%

* Each group must prepare a copy of write up (simple notes) for each student.
* All presentation materials must be shared with other students

10

REFERENCES

1. Kim Langfield Smith, Helen Thorne, Ronald W. Hilton (2006), Management Accounting, 4th
Edition, McGraw Hill
2. Articles from Professional Journals.
3. CPA Australia/CIMA/ACCA modules.
4. Don R. Hansen Maryanne M. Mowen (2000), Management Accounting, 7th Edition, SouthWestern College Publishing.
5. Drury, C. (2004), Management and Cost Accounting, 6th Edition, Thomson Publishing.
6. Hilton, R.W (2005), Managerial Accounting: Creating Value in Dynamic Business Environment,
7th Edition, McGraw Hill.
7. Kaplan and Atkinson (1998), Advanced Management Accounting, Prentice-Hall.

PLAGIARISM: The Faculty regards plagiarism as a very serious matter and takes action under the appropriate disciplinary regulations
against students who are involved in cases of plagiarism. Students are expected to discuss their work with peers and tutors. However, they
are expected to present their own original work and make material contribution to the group work.

11