N90307 Management Control System

The course is focused on the Managerial Accounting knowledge and tools: Master budget, Variance analysis, Activity based Budgeting, Performance Measurement, Responsibility acconting are the basic topics of the course.

The course is divided in three parts:

1. Planning and Budgeting according both to traditional functional approach and activity based approach
2. Control and Variance Analysis
3. Reporting and Responsibility Accounting

The course is open to Erasmus students as well as to Italian students, these ones with limitations according to the number of Erasmus students.

Students will be able to elaborate Master budget documents, to evaluate performance by means of variance analysis, to report results by using different models of statements (full costing and variable costing).   

• The Functional Master Budget process - introduction and a first example concerning a commercial company (CHC company)
• Budget for manufacturing company: a comprehensive case (case Beirut Freeze)
• Budget for manufacturing without and  with limiting factors (Iron part 1 and 2); planned full costing and variable costing and effect on net operative income
• Variance analysis_ theory and exercises _ costs
• Variance analysis_ theory and exercises_revenues
• Activity based costing and budgeting
• Responsibility accounting and reporting
• Non financial measures of performance; balanced scorecard
• Profit center more in detail: financial measures and transfer prices

The course is balanced between traditional lessons and interactive group-works (e.g. assignments).

In any case, active participation during the lessons is strongly required.

The final grade of the course is the result of:

• class participation (20%)
• home assignments (30%)
• final written test (50%)