75437 - Management Accounting in Public and Non Profit Sector

Learning outcomes

This course will provide students with some frameworks and ways of thinking about how public sector organizations and nonprofit organizations should implement management control systems in their contexts. 

Students who complete the course successfully will know about:

• The differences amongst private sector and nonprofit/public sector organizations' key success factors, why they vary among different types organizations, and how they influences decision making processes and, thus, management control systems.
• Ways that organizations can account for their costs and how the cost accounting effort can help nonprofit/publics sector organizations' decision making processes.
• How the technique of variance analysis can improve one's understanding to improve corrective actions.
• How to measure and manage performance in nonprofit/public sector organizations.

Course contents

The course will meet for 10 sessions in the second half of first semester of academic year 2019/20 (November and December 2019) according to the detailed program below (specific days, time and venue are published in the Course Timetable box on top right of the page):   

Class #1
Introduction to course
Read: Chapters 2 & 3
Content of the class: Brief discussion of Chapters 2 & 3.

Class #2
Full Cost Accounting and Pricing
Goal of the class: To discuss and train on fundamentals of full cost accounting.
Read: Chapter 7.
Content of the class: Be prepared to actively participate in solving the problems presented by the teacher.

Class #3
Full Cost Accounting and Pricing
Goal of the class: As class #2.
Read: re-read Chapter 7.
Content of the class: As class #2.

Class #4
Cost Behavior and Differential Cost
Goal of the class: To discuss and train on cost behavior and the related differential cost concepts.
Read: Chapter 8 (up to page 227 - The Outsourcing Decision).
Content of the class: Be prepared to actively participate in solving the problems presented by the teacher.

Class #5
Cost Behavior and Differential Cost
Goal of the class: As class #4.
Read: re-read Chapter 8 (up to page 227 - The Outsourcing Decision).
Content of the class: As class #4.

Class #6
Mid-term assessment
Goal of the class: Evaluate your level of knowledge of full cost, cost behavior and differential cost.
Read: re-read Chapters 7 & 8 (up to page 227 - The Outsourcing Decision).
Content of the class: Solve three exercises individually.

Class #7
Full Cost Accounting and Pricing in Context
Goal of the class: To apply full cost accounting principles for pricing decision making in context.
Read: re-read Chapter 7 (see Classes #2 & #3)
Prepare: Neighborhood Servings

Class #8
Cost Behavior and Differential Cost in Context
Goal of the class: To apply cost behavior and the related differential cost concepts in context.
Read: re-read Chapter 8 (up to page 227 - The Outsourcing Decision) (see Classes #4 & #5).
Prepare: Abbington Youth Center

Class #9
Measuring Performance
Goal of the class: To discuss the multidimensional facets of performance in public and nonprofit sectors.
Read: Chapter 9.
Prepare: Carleton Fire Department

Class #10 
Budgeting, Reporting and Variance Analysis
Goal of the class: To apply the variance analysis for decision making.
Read: Chapter 10.
Prepare: Town of Bellington

Readings/Bibliography

Textbook
Padovani E., Young D. W., Managing Local Governments. Designing Management Control Systems that Deliver Value. London: Routledge, 2011, chapters 2, 3, 7, 8, 9, 10.

Textbooks and workbooks to support classes #2 to #6
For Italian-speaking students, one among the following two textbooks:
* Cinquini L., Cost management. Volume I. (1a edizione), 2017, Giappichelli Editore, Torino.
* Cinquini L., Strumenti per l'analisi dei costi. Volume I. Fondamenti di Cost Accounting (4a edizione), 2013, Giappichelli Editore, Torino, pagine 210 - ISBN 9788834886854 - il libro è esaurito presso l'Editore, e può essere acquistato solo sul mercato dell'usato
For Italian-speaking students, the following workbook:
* Pitzalis A., Tenucci A., Strumenti per l'analisi dei costi. Esercizi e casi di Cost Accounting (2a edizione), 2007, Giappichelli Editore, Torino - pagine 281 - available in e-book version only
For all students:
* Accounting Workbook
More info on chapters and exercises to come.

Cases for classes #7 to #10. The texts of the cases will be handed out in hard copies during classes.

Teaching methods

The course will use a combination of readings, interactive lectures, and case discussions. Further details on the e-learning platform from the first class.

Assessment methods

Attending students.

1. 10%, i.e. 0-3 points, for the "mid-term assessment" on Class #6
2. 40%, i.e. 0-12 points, for team solutions of cases on Classes #7 #8 #9 and #10 (3 points per case if the solution is assessed at least fair)
3. 50% (and extra points), i.e. 0-17 points, for the individual written exam that will consist of a case analysis.

Non attending students. 1. and 2. will be replaced by an interview after the individual written exam.

Office hours

See the website of Emanuele Padovani