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 to measure and manage performance in nonprofit/public sector organizations.

Course contents

The course meets for 10 sessions in the second half of first semester (November and December 2020) according to the detailed program below.

Class #1 - Introduction to course
Goal of the class: To review the syllabus, discuss course expectations, answer questions about the course, and discuss the process of analyzing the final case.
Assignment: 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.
Assignment: 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 (continued)
Goal of the class: As class #2.
Assignment: re-read Chapter 7.
Content of the class: As class #2.

Class #4 - Activity-Based Costing (ABC)
Goal of the class: To discuss and train on Activity-Based Cost (ABC) concepts.
Assignment: re-read Chapter 7, especially pages 193-194.
Content of the class: Be prepared to actively participate in solving the problems presented by the teacher, applying the ABC concepts.

Class #5 - Cost Behavior and Differential Cost
Goal of the class: To discuss and train on cost behavior and the related differential cost concepts.
Assignment: 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 #6 - Cost Behavior and Differential Cost (continued)
Goal of the class: As class #5.
Assignment: re-read Chapter 8 (up to page 227 - The Outsourcing Decision).
Content of the class: As class #5.

Class #7 - Mid-term assessment & Measuring Performance
Goal of the class: To evaluate your level of knowledge of full cost, ABC, cost behaviour, and differential cost; To discuss the multidimensional facets of performance in public and nonprofit sectors.
Content of the class: Be prepared to solve two exercises in your team (1h 30min); introduction of the concepts of performance measurement in the public sector (1h)
Assignment: Training on practice cases provided within the e-learing platform and re-read Chapters 7 & 8; read Chapter 9.

Class #8 - Reporting and action
Goal of the class: To compare actual results to the budget using cost drivers and to apply the variance analysis for decision making.
Content of the class: Introduction of the concept of variance analysis; starting case analysis and discussion in teams.
Assignment: read Chapter 10 and the case problem published on the e-learning platform.

Class #9 - Reporting and action (continued)
Goal of the class: As class #8.
Content of the class: Case analysis in teams continues.
Assignment: case problem analysis.

Class #10 - Reporting and action (continued) & Closure
Goal of the class: As class #8.
Content of the class: Case discussion all together.
Assignment: case problem analysis and discussion presentation.

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 some classes

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
... and 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 published within the e-learning platform.

Teaching methods

The course uses a combination of readings, interactive lectures (classes 1 to 8), and case discussions (classes 8 to 10).

Assessment methods

Grading is based on a combination of a mid-term assessment done in teams, one written case analysis done in teams and an interview. All parts of the exam are held online via MS Teams.

Attending students

1. Mid-term team exam: 20%, i.e. 0-6 points, for the mid-term assessment (in teams) on class number 7: each team's member is awarded with the team's grade
2. Case problem solved in team: 30%, i.e. 0-6 points, for team's solution of a case problem analysed and discussed on classes number 8 to 10: 6 points awarded per each member of the team if the solution is assessed at least fair
3. Final individual interview: 50% (and extra points), i.e. 0-20 points, for the individual interview.

Non attending students

1. and 2. are replaced by further questions during the interview.

Office hours

See the website of Emanuele Padovani