82189 - Management Control Systems Lab

Learning outcomes

The course aims to provide students with some tools and techniques of cost management in several contextes (for-profit, non-profit, private, public). By the end of the course students are able to: (a) to define the network of responsibility center, the different types of responsibility centers, and the basis for choosing the most appropriate type; (b) to understand what are the phases of the management control process and the characteristics of each; (c) to understand some of the issues involved in measuring non-financial performance and to implement effective integrated (financial and non-financial) measurement systems.

Course contents

The course is designed to help you enhance your understanding of full cost accounting, differential accounting, and management control system, with the primary focus on management control system.

The course is divided into two segments. Segment A involves analyzing cases and discussion them in class. Segment B involves studying an organization's management control system and making presentations about it in class. During Segment A you will select the company for study in Segment B.

Upon completing the two segments of the course, you should know (or know more) about:

• Full Cost Accounting (Chapters 1, 4, and 5)
• Differential Cost Accounting (Chapters 2 and 3)
• Responsibility Accounting (Chapters 6-12)

Detailed syllabus upon request to david@davidyoung.org.

Readings/Bibliography

Young, David W., Management Accounting for Managers: An Interactive User-Oriented Primer, Fourth Edition, Cambridge, Massachusetts, The Crimson Press, 2018

Teaching methods

Case method. The case method of instruction works extremely well when both the students and the instructor are well prepared; otherwise it can be extremely frustrating for both. For this reason, I will expect you to analyze each case fully in preparation for class. In conducting your analyses, you should answer all the questions at the end of the case, since, normally, the class discussion will focus on them. You should not feel constrained by these questions, however, since frequently there are other issues of importance. 

While each of you will develop a preparation process that suits your own needs, please do not attempt to memorize the concepts of a chapter. Rather, you should use the chapter's concepts in your case analyses. My goal is to have you master the concepts in such a way that you can use them in the real world as well as in the classroom. This will be especially important in Segment B.

More details in the detailed syllabus upon request to david@davidyoung.org.

Assessment methods

Grading for Segment A of the course will be based on a combination of classroom contribution and three written case analyses by your team. The grading percentages are as follows:

• Class contribution 20%
• Memos prepared by your team (10% each) 30%

Grading for Segment B will be based on your work with the organization whose management control system you are analyzing. The grading percentages are as follows:

• Written case analysis and report 30%
• Presentation of your analysis and report 20%

More details in the detailed syllabus upon request to david@davidyoung.org.

Office hours

See the website of David William Young