UNIVERSITY OF BIRMINGHAM

THE BIRMINGHAM BUSINESS SCHOOL

MSC ACCOUNTING & FINANCE
MANAGEMENT ACCOUNTING: 07 03100

AUTUMN 2010

Lecturer: Professor Mathew Tsamenyi Secretary: Karen Hanson

Office: 157 University House Office: G47 University House
Tel: 0121 4158439 Tel: 0121 414 6530
Email: m.tsamenyi@bham.ac.uk Email: k.hanson@bham.ac.uk

Class Tutor: Philip Lassou

Email: PJL676@bham.ac.uk

MODULE DESCRIPTION:

This module examines management accounting from a theoretical perspective by considering

the purposes of generating management accounting information. It will review and extend basic
management accounting concepts and techniques by looking at their role in providing
appropriate information for economic decision-making, organisational control and performance
evaluation.

It offers students (including those with no previous management accounting background) an

opportunity to study the subject from a conceptual standpoint.

Where possible, the course will consider the impact of technological change, the current
commercial environment and the needs of different types of businesses on the design of
management accounting systems.

In the context of the above framework, the course will include consideration of more recently
developed techniques of activity based costing, total quality management, economic value added
and the balanced scorecard.

LEARNING OUTCOMES:

On completion of the module, participants should be able to discuss the issues involved and,
where appropriate, produce supporting numerical examples in the following areas:

(a) the nature of costs

(b) cost behaviour and cost estimation

(c) income effects of different costing method, including ABC

(d) budgeting and responsibility accounting

(e) profit centre and investment centre performance measurement

(f) transfer pricing between divisions

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(g) the changing environment of management accounting
PREREQUISITES:

None

TEXTBOOKS:

Zimmerman, J. L (2009 or 2010) (6th Edition or 7th Edition), Accounting for Decision Making
and Control, McGraw-Hill International (ISBN-0-07-111554-4)

Further Reading:

Berry, A.J., Broadbent, J. and Otley, D., (2005), Management Control: Theories Issues and
Performance, Palgrave Macmillan.

Bhimani, A., (2006), Contemporary Issues in Management Accounting, Oxford University

Press, 2006.

Chapman, C.S., (2005), Controlling Strategy: Management Accounting and Performance

Measurement, Oxford University Press.

Drury C. (2008), Management and Cost Accounting, (6th edition) Thomson Learning Business
Press

Hope, J. and Hope, T., Competing in the Third Wave, Harvard Business School Press, 1997.

Hopper, T, Scapens, R and Northcott, D (2007), Issues in Management Accounting, FT

Prentice Hall (Pearson), 3rd Edition

Horngren, C.T., Bhimani, A., Datar, S.M., and Foster, G., (2005) Management and Cost
Accounting (3rd edition), FT Prentice Hall.

Macintosh, N. B, (2002), Accounting, accountants and accountability: poststructuralist

positions, London: Routledge

Seal, W, Garrison, R and Noreen, E, (2005) Management Accounting (2nd edition) McGraw-Hill

Wickramasinghe, D., Alawattage C. (2007) Management Accounting Change: Approaches and

Perspectives , Routledge, London,

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Useful Journals
In additional to the above texts, you will also find useful articles in academic journals. Some of
the key journals that publish research on management accounting are:

Accounting Organizations and Society

Accounting, Auditing and Accountability Journal
Management Accounting Research (UK)
Journal of Management Accounting Research (USA)
Critical Perspective on Accounting
Accounting Forum
The International Journal of Accounting
The European Accounting Review
The British Accounting Review

MODULE OUTLINE, ESSENTIAL READING AND CLASSWORK ASSIGNMENTS

Classwork assignments should be attempted in advance of class sessions, which will run one
week in arrears i.e. the classes listed under session 1will be covered in class sessions in week 2,
etc.

SESSION 1 Introduction to module and the role of management accounting in

organisations
Readings Zimmerman Ch 1
Classwork 1 Zimmerman, P1-1 (MBA students); P1-2 (One cost system is not
enough); P1-4 (Managers need accounting information)

SESSION 2 Cost classification and cost behaviour

Readings Zimmerman, Ch 2
Classwork 2 P2-27 (William Company); Case 2-3 (Puttmaster)

SESSION 3 Organisational decision making and the impacts of human behaviour

Readings Zimmerman Ch 4
Classwork 3 P4-9 (Raises); P4-24 (Repro Corporation); Case 4-1 (Christian Children's
Fund)

SESSIONS 4&5 Responsibility accounting, transfer pricing and financial measures of

performance
Readings Zimmerman Ch 5
Classwork 4 P5-2 (Phipps Electronics); P5-9 (Microelectronics)
Classwork 5 Case5-1 (Swan Systems)

SESSIONS 6&7 Budgetary controls

Readings Zimmerman Ch 6
Classwork 6 P6-4 (Budget Lapsing versus Line-Item Budgets); P6-16 (Adrian Power)
Classwork 7 P6-2 (Investment Banks); P6-24 (Madden International)

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SESSION 8 Relevance lost and the evolution of activity based costing/
management systems
Readings Zimmerman Ch 11
Classwork 8 P11.4 (Milan Pasta); P 11-7 (DVDs)

SESSIONS 9&10 Management accounting in a changing environment and strategic

management accounting (total quality management, balanced
scorecard, etc).

Readings Zimmerman Ch 14
Classwork 9 P14-3 (Fiedler International); P14-10 (TQM at the Stowbridge Division)

METHODS OF ASSESSMENT:

Continuous assessment: One assignment in autumn term

25%
Examination component One 3 hour examination in January 2011
75%

Your assignment must be handed in by 12.00 noon on 8 December 2010. It should not exceed
2,500 words (excluding bibliography and appendices). Exceeding the word limit may result in
marks being deducted. All essays should contain a full bibliography.

In-course assignment:

Using appropriate academic literature, critically evaluate the argument that “traditional
management accounting systems are incompatible with today’s changing business
environment”.

Criteria for Evaluating In-course Work:

Credit will be given for:

(a) A clear understanding of the role of the management accounting in organisations

(b) An understanding of the changing business environment and its impact on the role of
management accounting in organisations.
(c) Discussions of recent developments in management accounting and evaluating how
these developments have contributed to understanding the role of the management
accounting in organisations.
(d) A well-reasoned argument leading to appropriate conclusions regarding how the role of
the management accounting has changed (or not changed) in line with changes in the
business environment.
(e) Support for your argument using appropriate theory and literature.
(f) The adoption of an appropriate academic format, including referencing